Three Danish Banks merge to form AL Sydbank
In Denmark, Sydbank A/S, Arbejdernes Landsbank, and Vestjysk Bank A/S have announced their intention to merge, forming a new entity under the name AL Sydbank A/S. The merger agreement, signed by the boards of all three institutions, proposes Sydbank as the continuing legal entity, with headquarters in Aabenraa.
The proposal will be presented to shareholders at extraordinary general meetings scheduled for 2, 3, and 4 December 2025. The boards of directors have unanimously recommended that shareholders vote in favour of the merger, which aims to consolidate strengths and ensure long-term competitiveness in the Danish banking market.
A unified vision for Danish banking
The merger brings together three distinct banking profiles: Sydbank, recognised as Denmark’s commercial bank; Arbejdernes Landsbank, the preferred choice for private customers; and Vestjysk Bank, known for its strong local presence. Together, they will form AL Sydbank—a nationwide bank with deep local roots and a shared commitment to integrity, customer focus, employee engagement, and social responsibility.
AL Sydbank will offer Denmark’s most extensive branch network, ensuring continuity of service and proximity to customers. The bank’s business model will emphasise straightforward advice and long-term relationships, while leveraging greater scale and expertise to support larger corporate commitments.
The merger also promises new career opportunities for employees, with a broader platform for growth and development. In an era of increasing regulation, digitalisation, and competitive pressure, AL Sydbank aims to define the future of Danish banking by safeguarding independence and enhancing value creation.
Creating a new banking giant in Denmark
The merger is expected to support the fulfilment of each bank’s growth strategy by creating a larger and more efficient financial foundation. AL Sydbank will be better equipped to undertake significantly larger commitments, invest in digitalisation, and improve customer experiences. Decision-making will remain close to local communities, while capital utilisation and funding costs are expected to improve. Following the merger, AL Sydbank will rank among Denmark’s five largest banks, with total lending of DKK 137 billion, deposits of DKK 207 billion, and total credit intermediation of DKK 375 billion.
Expected synergies and operational gains
Annual cost synergies of approximately DKK 1.2 billion before tax are anticipated, to be fully realised within 24 months. These savings will stem from the integration of IT platforms, staff functions, and branch optimisation. Capital synergies are also expected, with a reduction in risk-weighted exposures of DKK 12–18 billion over 36 months.
Beyond financial efficiencies, the merger will generate development synergies through combined investment capacity, a broader skills base, and enhanced innovation for both private and corporate clients.
The re-organisation of the bank
AL Sydbank will be headquartered in Aabenraa and maintain a nationwide branch network. Sydbank’s 13 existing local councils will be joined by three new ones—in Western Jutland, Eastern Zealand, and one representing former Arbejdernes Landsbank shareholders.
From the merger date until the 2026 general meeting, the General Assembly will comprise Sydbank’s current 63 elected members and five from the new councils. Thereafter, it will consist of 60–80 members elected at the general meeting and 3–5 elected from the local councils.
The Executive Management team will include Mark Luscombe (CEO), Frank Mortensen (Deputy CEO), Jørn Adam Møller, Stig Westergaard, Peter Hupfeld, Svend Randers, and Gry Bandholm. The interim Board of Directors will be chaired by Ellen Trane Nørby, with Claus Jensen as Vice-Chair, and include representatives from all three banks and four employee-elected members. Post-2026, the board will comprise four members elected at the Annual General Meeting, eight by the General Assembly, and six by employees.
Post-merger ownership is expected to be distributed as follows: 57.15% held by Sydbank shareholders, 39.00% by Arbejdernes Landsbank shareholders, and 3.85% by Vestjysk Bank minority shareholders.
Regulatory process and timeline
Completion of the merger is subject to approval at the banks’ general meetings, clearance from the Danish Financial Supervisory Authority under section 204 of the Danish Financial Business Act, and approval from Danish competition authorities. Upon finalisation in December 2025, Vestjysk Bank shares will be delisted from Nasdaq Copenhagen, and AL Sydbank shares will be admitted to trading and official listing. Shareholders transferring shares may be subject to tax on gains and are advised to seek individual financial advice.
This merger marks a transformative moment in Danish banking, positioning AL Sydbank as a resilient, customer-centric institution poised for sustainable growth and innovation.
