MBH Bank Acquiring Majority Stake in Fundamenta

Deals

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Hungary’s MBH Bank Nyrt. signed a share purchase agreement with the Austrian Bausparkasse Wüstenrot AG and the German Wüstenrot & Württembergische AG and Bausparkasse Schwäbisch Hall AG this month to acquire a 76.35% stake in Fundamenta-Lakáskassza Lakás-takarékpénztár Zrt.

The transaction is expected to close in the first half of 2024, subject to obtaining the necessary permits, MBH Bank notes. Following closing, Fundamenta will operate as a consolidated subsidiary of MBH Bank; however, it will be a separate entity with its own brand name and management.

The bank says that Fundamenta’s customers will benefit from the solid background of a stable, well-capitalized bank with the largest nationwide branch network and a broad product portfolio, which, in  the long run, will allow customers access to a range of new investment, insurance and loan products on favorable terms.

MBH Bank said the acquisition will significantly bolster its growth plans, adding 480,000 customers, about HUF 530 billion in loans, and HUF 570 bln in deposits. Besides a boost in the retail and residential mortgage markets, the acquisition will also add Fundamenta’s strong distribution network to MBH Bank’s toolbox.

That means the bank’s products will be available through new channels and to an even wider audience. The bank also notes that acquiring Fundamenta will enable it to build a comprehensive real estate lending and savings ecosystem that will further strengthen its market position in areas such as energy efficiency lending and condominium renovations.

Growth Strategy

“The purchase of Fundamenta is an important stage in the implementation of our growth strategy, but the real winners of the transaction will be the customers of the two financial institutions, who will have access to an even wider range of products through more channels,” says Zsolt Barna, president and CEO of MBH Bank.

“Due to this transaction, a new real estate financing and savings ecosystem can be created, providing customers with unique financing options for building a home, whether it’s a property purchase or modernization,” he adds.

MBH Bank currently has almost two million retail and corporate clients, HUF 893 bln in equity capital, a HUF 6.2 trillion gross loan portfolio and HUF 5 tln in deposits. The bank came into being as the culmination of a gradual, three-way tie-up between Budapest Bank, MKB Bank, and Takarék Bank that was first announced in 2020.

Today, the bank has a nationwide presence in Hungary through an extensive network of branches and ATMs and is a market leader in the corporate segment, leasing, agribusinesses and the food industry, among others. Moreover, it provides a wide range of money and capital market services, as well as investment services.

This article was first published in the Budapest Business Journal print issue of November 17, 2023.

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