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Sberbank Europe to part with Hungarian unit

Banking

Image by Hayran1 / Shutterstock.com

Russian-owned Sberbank Europe on Wednesday said it agreed to sell a number of its businesses in Central and Eastern Europe - including the one in Hungary - to Serbia's AIK Banka, Gorenjska Banka of Slovenia, and Agri Europe Cyprus for an undisclosed amount, according to a report by state news wire MTI.

In addition to Sberbank Magyarország, the deal includes Sberbank Europe's units in Bosnia and Herzegovina, Croatia, Serbia, and Slovenia. Sberbank Europe will keep its unit in the Czech Republic.

"Sberbank Europe AG has decided to reduce its geographic presence in CEE in order to focus on key markets and explore new business models," the lender said.

"The purchasers have a large regional presence as well as a clear vision of the future development, supporting further growth of the banks and ensuring that the clients will continue to receive services of the same high quality," it added.

The transaction is expected to close in 2022, pending regulatory approval.

Sberbank Magyarország had total assets of HUF 511 billion at the end of 2020, public records show. The stock of client loans stood at HUF 295 bln and client deposits reached HUF 355 bln.

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