OTP agrees to sell Slovakian unit to KBC
Tupungato/Shutterstock.com
OTP Bank on Monday said it agreed to sell its Slovakian unit to Belgian peer KBC Bank, state news wire MTI reports.
Photo: Tupungato/Shutterstock.com
The transaction is expected to be closed "in the coming months" subject to regulatory approval.
OTP Banka Slovensko confirmed in January that talks on its sale were underway. The lender has a market share of about 3%.
OTP booked HUF after-tax profit of HUF 1.98 billion at its Slovakian unit for the period Q1-Q3, the lenderʼs latest earnings report shows.
In the statement released after the disclosure, OTP head Sándor Csányi said that the group "continually works towards increasing its market share in the CEE region through organic growth and acquisitions".
"The Group has followed this strategy throughout the almost twenty years it has been present in Slovakia. However, as it was unable to increase its market share to the optimum level, management took the decision to sell this group member. This deal will enable our group to focus on markets where we can achieve a higher market share in the future," he added.
In the same statement, KBC said OTP Banka Slovensko would be merged with its local unit CSOB. The merger will not affect the option for Hungarian-speaking customers of OTP Banka Slovensko to be served in their own language at locations with a Hungarian population, it added.
Policymakers Cut Central Bank Base Rate by 50 bp to 7.75%
Bulgaria's Household Income, Spending Rise 20% in 2023
Spar Magyarország Revenue Climbs Close to 16% in 2023
Hungary Launches HUF 15 bln Tourism Sector Support Program
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
