Budapest Bank, MKB to merge next spring
According to the plans of Hungarian Bankholding, Budapest Bank, and MKB Bank, the two member banks of the banking group will merge on March 31 2022, thus creating the basis for the unified operation of the banking group.
The merged banks will temporarily continue to operate under the name MKB Bank Plc.
The Takarék Group will join the merged bank in the second quarter of 2023, while Hungarian Bankholding will continuously harmonize banking operations.
At the same time, the complete management of Bankholding will take over the responsibilities of the senior management of the member banks, so the operation and management of the Hungarian Bankholding group will be unified. The merger plans is expected to be approved by the owners in mid-December.
Today, MKB Bank, listed on the Budapest Stock Exchange, published the proposals of the company's general meeting to be held on 15 December 2021, after the professional management of Hungarian Bankholding submitted a timetable to the owners for the merger of Budapest Bank, MKB Bank, and Takarék Group, the creation of a superbank with a key role in the Hungarian financial market.
“As a result of the intensive planning work of recent months, the timetable for the triple bank merger is established. We are convinced that with the implementation of our strategic plans, the merger and transformation of the three banks can be successfully completed, which is a unique professional task at an international level as well. Our goal is to build the most modern bank in Hungary: with core values such as stability and reliability, it will be able to radically change the customer experience related to financial services with its digital solutions,” said Zsolt Barna, chairman of the board of directors of Hungarian Bankholding.
The merger does not represent a change in the ownership structure of the banking group; Hungarian Bankholding continues to be the owner of the banks participating in the merger process.
The products and services of Budapest Bank and MKB Bank will continue to be available. Following the end of March 2022 merger, customers will still be able to conduct banking affairs at their home bank branches.
Digital developments in full swing
A key element of the strategy of Hungarian Bankholding is digital banking, meaning the introduction of internationally leading fintech solutions. Accordingly, the technological transformation of the banking group is currently underway.
The transformation of the group is managed by Balázs Vinnai and Roland Pecsenye, internationally recognized experts in the digital banking sector. The aim of the developments is to make the emerging universal large bank the most modern financial service provider in Hungary, for which it intends to introduce flexible, fast solutions and products that can be combined with each other.
Full operational fusion to end in 2023
Based on the five-year strategy approved in March for the merger of the member banks of Hungarian Bankholding, the full operational fusion of the three credit institutions is planned to be concluded in 2023.
The banking group is the second-largest market player in Hungary in terms of balance sheet total, and it also has the largest branch and ATM network. It is a market leader in a number of areas, such as corporate lending, within that the lending to the micro, small and medium-sized enterprise sector, and the leasing market. The business unit serving the agriculture sector – which accounts for 4% of gross domestic product – is the number one market player. The group also has a strong position in the private banking market.
“The Hungarian Bankholding group is a key player in the domestic financial sector, combining the strengths of three extremely stable banks. In parallel with the mergers, we pay special attention to the quality service of our customers and the smoothness of everyday administration, which is the basis of our business success. We also play a key role in the economic recovery following the coronavirus epidemic, both through our market financing activities and state-subsidized constructions,” said József Vida, CEO of Hungarian Bankholding.
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.