Erste Bank Hungary Closes Acquisition of Commerzbank Unit

Banking

Austrian-owned Erste Bank Hungary closed the acquisition of a 100+ stake in Commerzbank's local corporate banking subsidiary Commerzbank Zrt, the bank said on Monday, according to a report by state news wire MTI.

Erste chairman-CEO Radovan Jelasity said they have merged the activities of Commerzbank into their corporate business and with this, they have completed their 10th acquisition.

Erse Bank expects its revenue to surpass HUF 200 billion by the end of the year, double what it was seven years ago, Jelasity said, noting the positive impact of the interest rate environment in addition to the acquisition in the last quarter.

Erste Bank Hungary agreed to acquire Commerzbank Zrt one year ago. The acquisition was closed on November 30 and the client and portfolio migration took place on December 1-4.

Richárd Szabados, who heads Erste Bank Hungary's business division, said the acquisition raises the lender's share of the corporate banking market from 7-8% to over 10%. It lifts corporate lending stock over HUF 1.2 trillion to make Erste Bank Hungary the fifth biggest player in the segment, he added. 

Erste Bank Hungary earlier acquired broker Random Capital, the home savings bank of Aegon, the retail division of Citibank, and the asset management division of BNP Paribas in Hungary.

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