CIB Bank stays bullish on Hungary

History

Intesa Sanpaolo, parent bank of Hungarian CIB, announced at a press conference in Turin yesterday that it has no intentions of pulling out of Hungary, and is instead willing to expand its size in the country.The spokesperson added that the chain is striving for partnership with the Hungarian government and the Italian owners are sure that a viable solution would be found for the FX loan issue.

For expansion, CIB is planning to shift emphasis from the management of non-performing loans towards services, CIB CEO Pál Simák said. “If you’re in a country for 30 years you should not get surprised,” he added.

On the cooperation with the government, Simák emphasized that regulations affecting banks are common everywhere and they inevitably lead to higher costs for the banks. It is the mutual goal of banks and governments to increase the well-being of citizens, thus a bank and a government can never be enemies, he noted.

Although Hungary is not performing as well as the parent bank expects it, still it is not Intesa’s interest to abandone Hungary, as the country was one of the firsts where the Italian bank chain invested back in 1980.

The economic-political situation of Ukraine is not affecting the group for long as Intesa Sanpaolo has made the initial steps for drawing the chain out from the country. 

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