OTP agrees to sell Slovakian unit to KBC

Deals

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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.

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