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OTP Bank buys Banco Popolare branches in Croatia

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OTP Bank on Friday announced today that its Croatian subsidiary OTP Banka Hrvatska has signed an agreement to buy 98.4% of Italy-based Banco Popolare’s branches in Croatia for HRK 107 million (€14 million).

Croatian daily Vecernji List reported two weeks ago that OTP would buy Banco Popolare Croatiat (BPC).

According to OTP Bank statistics, BPC has a 0.6% market share and is Croatia’s 14th-biggest bank in terms of assets. BPC has 33 branches and 33 ATMs in the country and serves some 54,000 clients. The unit's shares of Croatia’s consumer lending market is over 2%, which makes it a “nice fit” with the business strategy of OTP banka Hrvatska, in the words of OTP management.

As a result of the acquisition, OTP’s presence in Croatia will grow to 130 branches overall and more than 250 ATMs, serving almost 440,000 clients.

BPC had total assets of HRK 2.3 billion at the end of the third quarter in 2013. Lending stock came to HRK 1.7 billion and deposits reached a nearly identical HRK 1.7 billion. Total assets of OTP Banka Hrvatska came to HRK 14.1 billion at the end of September. Stock of loans was HRK 9.6 billion and deposits reached HRK 11.1 billion. The unit's after-tax profit came to HRK 50 million through the third quarter.

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