After an analysis of the banking sector in the mid-1980s, Proventus concluded that the Swedish banking industry was on the threshold of fundamental changes. The international trend towards a liberalization of financial markets was expected to open opportunities in areas previously closed to banks, and Swedish banks would require a strategic repositioning in order to capitalize on such opportunities.

Banks in general were traded at a discount to net asset value, despite consistently high returns on equity. The Proventus analysis focused on Götabanken, a bank whose operating performance could be improved considerably. Furthermore, the bank’s ownership structure and size was such that Proventus could achieve an influential position in order to bring about a strategic reorientation.

The strategic plan developed by Proventus for Götabanken was a multi-step process. First, the bank needed to focus its operations to serve market segments where it could reach critical mass, and adapt its services to new customer demands. The second step was to expand the bank’s operations to include new products and services not traditionally offered by commercial banks in Sweden. Finally, the bank needed to become a major financial player in the Nordic region.

During 1985, Proventus built a 43% holding in Götabanken. After strengthening the board of directors, Proventus acquired a number of financial companies throughout 1986-1987, including the investment bank Jacobson & Ponsbach; the investment company B&B Invest; and B&B’s subsidiary, Wermlandsbanken. In early 1987, all of these companies, together with Götabanken, were combined in GOTA: Sweden’s first bank holding company with operations in private and corporate banking, investment banking and leasing activities. In 1988, GOTA became the majority owner in the regional bank Skaraborgsbanken, which was subsequently merged into the group.

GOTA was created to be a true competitor in the Swedish financial market. The size of Proventus’ ownership position created an unusual situation in the Swedish financial community, where banks did not generally have such a high concentration of ownership. This caused Swedish authorities to enact legislative changes, popularly known as Lex GOTA, to restrict individual shareholder influence over publicly traded banks.

For GOTA to gain competitiveness and create the strongest balance sheet in the Nordic commercial banking market, Kansallis-Osake-Pankki (Kansallis-Osake Bank), a major Finnish bank, along with other Finnish interests, jointly acquired 40% of the Proventus holding in 1988. At the time, Kansallis-Osake-Pankki was rated AAA by Moody’s.

GOTA became a major financial services group with a new strategic position. By 1990, GOTA’s market value had grown substantially and a Proventus analysis indicated that continued improvement would require additional diversification into other financial sectors. The original plan was for GOTA’s partnership with Kansallis-Osake-Pankki to evolve into a pan-Nordic financial group. However, when Kansallis-Osake-Pankki experienced difficulties in the Finnish market, Proventus looked for another partner for GOTA. In the autumn of 1990, after negotiating with several Swedish banks and financial institutions, Proventus sold its shares in GOTA to SPP, Sweden’s largest mutual insurance company.