MP Bank Buys Iceland’s SPRON and Netbankinn Skip to content

MP Bank Buys Iceland’s SPRON and Netbankinn

Icelandic bank MP Banki reached an agreement with the resolution committee of SPRON savings bank yesterday on the acquisition of its branch network and its online unit Netbankinn. At least 45 employees of the 300 that were laid off will be rehired.

The SPRON branch on Borgartún in Reykjavík. Photo by Eygló Svala Arnarsdóttir.

Also, SPRON’s former customers whose accounts were relocated to Kaupthing are welcome to return, CEO of MP Banki Styrmir Thór Bragason told Fréttabladid.

The Financial Supervisory Authority (FME) took over the operations of SPRON on March 21 and assigned it to a resolution committee. The acquisition is subject to approval from the FME and the Competition Authority.

“I believe it is pretty certain that the acquisition will be approved,” Bragason stated.

The plan is for SPRON’s headquarters on Skólavördustígur in central Reykjavík and the branches on Borgartún and in Seltjarnarnes to open on Monday. Netbankinn will be operated as usual.

MP Banki, formerly known as MP Fjárfestingabanki (“investment bank”), has for some time been interested in launching traditional commercial banking operations. Bragason said the bank’s acquisition of SPRON is a step in that direction.

The agreement is worth almost ISK 800 million (USD 6.5 million, EUR 5.0 million). That amount includes a payment to the SPRON resolution committee and overtaking commitments such as rehiring at least 45 of the bank’s employees.

According to Morgunbladid, 16 companies were interested in the acquisition of SPRON and the bank’s resolution committee had considered the offers from five of them, including an offer from the Faroese Foeroya Bank.

Click here to read more about SPRON and here to read about a Faroese insurance company that is interested in launching operations in Iceland.

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