Kaupthing makes surprise swoop for Denmark’s FIH

Iceland’s biggest financial institution, Kaupthing Bank, has continued its aggressive expansion with the acquisition of the Danish medium and long-term financier, FIH, for DK7.1bn ($1.2bn). The purchase, from Sweden’s Swedbank, which surprised bankers who expected FIH to be bought by a Swedish bank, allows Kaupthing to expand its corporate banking capabilities and its presence in the Nordic region.

by Banker Editor

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“This is a major milestone for Kaupthing and is wholly in line with our strategy,” said Sigurdur Einarsson, Kaupthing’s executive chairman.

He added: “FIH is a strong force in Danish corporate banking and the acquisition brings us closer to our goal of becoming a leading investment bank in the Nordic region. We believe the existing senior management team has been key to FIH’s success and we intend to retain them to develop the business going forward.”

On a pro-forma basis this acquisition will increase Kaupthing’s total assets from E6.9bn to E15.9bn; the target for the combined group would be to keep the capital adequacy directive ratio in excess of 11% and Tier One capital ratio at 8% or higher.