Budapest Bank, MKB Bank merger complete
The legal merger of the two-member banks of Hungarian Bankholding: Budapest Bank and MKB Bank, was completed at midnight on March 31, according to a press release sent to the Budapest Business Journal.
The merged financial institution temporarily continues to operate under the name MKB Bank Nyrt. The merger marks another milestone in the triple bank merger led by Hungarian Bankholding, which aims to create the second-largest universal major bank of Hungary by integrating Budapest Bank, MKB Bank, and – later, by May 2023 – the Takarék Group.
The merged MKB Bank is present in 66 cities, with a total of 143 branches and 184 ATMs. Starting today, retail and corporate customers will be able to withdraw cash from ATMs of Takarékbank, in addition to the merged MKB Bank, at nearly 1,100 locations nationwide with their debit cards, for the same fee as the ATM cash withdrawal fee of their own bank.
The former Budapest Bank branches will also be rebranded and will continue to operate partly or entirely with the logo and other branding elements of the successor MKB Bank. From April 4, 14 former Budapest Bank branches will undergo a major image change. Clients will also be able to find the own data and logo of MKB Bank in all previously familiar communication channels - internet banking, mobile apps, account statements, postal, and e-mail.
The brand of the new large bank, which will be created from Budapest Bank, MKB Bank, and the Takarék Group, which will join next year, is currently being developed and is scheduled to be introduced in 2023, the company says.
Strong financial results
In 2021, both MKB Group and Budapest Bank closed a successful year.
MKB Group achieved an adjusted profit after tax of HUF 77.7 billion in 2021, and its total assets grew by 19,1% since 2020, reaching HUF 3.314 billion, with an increase of more than HUF 530 bln.
Budapest Bank achieved a total comprehensive income of HUF 6.2 bln and a consolidated profit before tax of HUF 13.8 bln last year. By the end of December 2021, the bank's total assets had increased by 7% year-on-year to more than HUF 2.53 trillion.
"We are entering the next chapter of the merger with a stable ownership base and strong financial foundations to build a market-leading digital bank that will contribute to the growth of the Hungarian economy and compete with international banks and neo-banks", said Zsolt Barna, chairman and CEO of Hungarian Bankholding Ltd. and the merged MKB Bank.
Transition weekend coming
In the days following the merger of Budapest Bank and MKB Bank, the merged bank will migrate its IT systems in a planned and scheduled manner. On the weekend of April 2-3, the instant payment system will also be shut down in a scheduled manner, and the merging institution will therefore declare a bank holiday on these days. Electronic channels – internet banking, mobile application, business terminal – will be unavailable. However, physical card purchases at POS terminals and ATM cash withdrawals will not be affected.
On Monday, April 4, the former Budapest Bank and the current MKB Bank branches will be closed nationwide for a bank holiday. On this day, payment orders will be processed as normal and customers will be able to use their debit cards without any disruption up to the limit of their balances.
Clients can find out more about the changeover period and how to use the services on the websites and social media platforms of Budapest Bank and MKB Bank, as well as through their personal contacts and customer service.
In relation to the IT migration, Ádám Egerszegi, deputy CEO for Transformation said, “It was of particular importance to ensure that the merger of the two-member banks would cause as little burden and disruption to customers as possible. We have put in place a number of precautions to deal with any problems that may arise over the weekend so that we can respond promptly to any queries from all customers through the usual communication channels of the member banks. The transition will allow us to offer customers a consistent service and product range in the future."
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