In legal terms, the Danske Bank Group first came into being when it began to establish subsidiaries in the twentieth century and published the Group’s first annual accounts in 1980. However, it was not until the development of new business areas at the turn of the century that the Group began to look like the one we know today: one of the largest financial enterprises in the Nordic region with a unique international banking model.
1809 and 1846 – two important years
All the banking, insurance and mortgage finance divisions in the Group that are currently supported by the central IT platform began life as independent businesses in the nineteenth century, Northern Bank (1809) being the oldest and Handelsbanken (1873) the youngest. The Danish roots stretch back to 1846 with the founding of “Fyns Disconto Kasse”, later known as “Provinsbanken”, in Odense.
1970-1980 – expansion at home and abroad
With the opening of a branch in Odense in 1975, the Bank had almost achieved its objective of nationwide coverage, and by 1978 “Den Danske Bank” had 281 branches. This left little scope for further expansion in Denmark – especially because competition on the home market was strictly regulated.
Expanding export markets presented opportunities abroad. Consequently, a new strategy began to take shape, with the first obvious sign being the opening of Danske Bank International in Luxembourg in 1976. Foreign involvement gathered pace over the following decade with the establishment of branches and wholly-owned subsidiaries.
1990 – liberalisation and growth through mergers in Denmark
Handelsbanken, Provinsbanken and Den Danske Bank merged in 1990 as a result of the increasing liberalisation of the Danish banking laws. The Den Danske Bank name was retained for the new bank, with Knud Sørensen appointed CEO of the Group, a position he retained until 1998, when he was succeeded by Peter Straarup.
After the merger, one of the largest projects involved the integration of the three banks’ computer systems. This gave the Group a technological head start from which it benefited during the 1990s. A succession of improved results in the 1990s was also reflected in an increased stock market valuation of the Group.
1990s – development of new business areas
During the 1990s the Group also expanded into new business areas. The takeover of Danica in 1995 made Danske Bank Group one of the largest companies in Scandinavia offering pension schemes and life and pension products. The Group strengthened its position further when it merged with RealDanmark A/S (BG Bank and Realkredit Danmark) on January 1, 2001.
1997-2005 – greater international exposure
In 1997, the Group launched a new strategic initiative: the entire Nordic region would be considered its home market. The Group had been doing business with companies in northern Europe for many years, so branches were established in Oslo, Stockholm and Helsinki. This was the year when the Swedish bank Östgöta Enskilda Bank joined the Danske Bank family.
In 1998, the Group bought securities firms in Norway, Sweden and Finland. The acquisition of the Norwegian bank Fokus Bank in 1999 reinforced the Nordic strategy. Recently, the Group’s international businesses were further expanded with the purchase of National Irish Bank in the Republic of Ireland and Northern Bank in Northern Ireland in 2005.
2007 – Sampo Bank – Finland and the Baltic states
In 2007, the Danske Bank Group again expanded its activities in the northern European market with the purchase of Sampo Bank, which has a Finnish branch network and branches in the Baltic states.