Gjensidige Bank ASA agreed to transfer "a sizable share" of its impaired and written-off unsecured lending portfolio to Lowell Group Ltd., a U.K.-based purchaser of bad loans.
The expected gain from the transaction on the company's pretax earnings is about 130 million Norwegian kroner. The deal is expected to conclude in the second quarter.
Gjensidige Bank, a fully owned subsidiary of Norwegian insurance group Gjensidige Forsikring ASA, said the transaction will enhance capital ratios and "reduce the uncertainty around recoveries of outstanding claims."
As of May 28, US$1 was equivalent to 8.19 Norwegian kroner.
