May 29, 2017 / 11:15 AM / 4 months ago

Sparebank 1 Oestlandet sees annual synergies of NOK 75 mln

OSLO, May 29 (Reuters) -

** Sparebank 1 Oestlandet’s IPO-SPBNK.OL Chief Executive Richard Heiberg expects to reduce costs through synergies of a least 75 million Norwegian crowns ($9 million) annually from 2018 following the acquisition of Bank 1 Oslo Akershus

** Will achieve synergies by cutting IT-costs and reduce the number of employees and branches, but aims to have a local presence in all market areas, he told Reuters following an investor briefing on Monday

** Expects number of branches to be cut to around 30-35 in five year’s time from today’s 38

** Says the bank is “somewhat overcapitalised”, aims to grow mainly in the Oslo and Akershus region by increasing market share from today’s level of around 6 percent

** Says has benefited from its biggest competitor DNB closing down many branches

** Has a market share of 50 percent in Hedmark, aims for growth line with the general credit growth, does not expect to increase market share in this area

** Repeats targets for dividend of 50 percent and 10 percent return on equity

** Has launched IPO, will list on the Oslo Stock Exchange in June ($1 = 8.4009 Norwegian crowns) (Reporting by Camilla Knudsen, editing by Terje Solsvik)

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