Cost and funding synergies are expected to amount to DKr610m, which is equal to 18 per cent of Sampo Bank’s cost base. Cost synergies will be derived mainly from IT cost savings, savings within the shared service centre and other areas. Funding synergies are expected to amount to DKr35m. Some 10% of the synergies are expected to occur in 2007, 70% in 2008 and 100% in 2009. Revenue synergies have been identified but not yet quantified.
Integration costs are expected to amount to €215m, or DKr1,550m, and they will be booked as they are used. The IT conversion of Sampo Bank, Finland took place at Easter 2008. The IT conversion will be followed by branch refurbishing and re-branding.