Erste Bank is taking over the private banking division of BNP Paribas in Hungary, Erste Bank chairman-CEO Radovan Jelasity said at a press conference in Budapest on Thursday.
The contract has already been signed and the acquisition is expected to be closed in November, pending approval by the Competition Office (GVH), Mr Jelasity said. He declined to reveal the price of the deal.
The acquisition will raise assets managed by Erste Bank's private banking division by HUF 60 billion to more than HUF 200 billion. It will give the division another 400 clients, compared to more than 1,800 at present.
Erste Bank's share of the private banking market will rise from 9% to 12% as a result of the acquisition.