Dankse Bank, which is the largest bank in Denmark according to market capitalization, is now suffering from crisis. It even revealed that they expect to write down more or less nine billion Danish crowns, which is equivalent to $1.5 billion, of its business value in Finland, Estonia and Northern Ireland.
The bank has to lay off staff and cut branches in order to ensure their recovery from the financial crisis they are currently battling. The financial crisis resulted when the bank was hit by the weakness in Finland and exposure in Ireland. These were also pulled even much more down by the standoff of Europe against Russia.
According to Ricky Steen Rasmussen, a well-known analyst from Nykredit Markets, the downfall of Dankse Bank just implies that the bank has bought something that is too expensive to afford. He also added that he thinks it is their acquisition in Finland that pulls down Dankse Bank to crisis.
It can be remembered that Dankse Bank took over Sampo Bank in Finland for a sum of 30.1 billion Danish crowns. It is among the most expensive acquisitions of Dankse Bank so far. Will the bank let the Sampo Bank go or will they choose to let go another branch?
