Croatian central bank approves sale of Splitska Banka to Hungarian OTP’s Croatia unit

Croatian central bank approves sale of Splitska Banka to Hungarian OTP’s Croatia unit
By bne IntelliNews April 20, 2017

The Croatian central bank (HNB) council has approved the sale of a 100% stake in Croatia's Splitska Banka to Hungarian lender OTP Banka’s Zadar-based Croatian unit OTP banka d.d., according to a statement from the HNB.

Societe Generale Splitska is the fifth biggest lender in Croatia, active in both in the retail and the corporate segment. As a result of the acquisition, the market share of OTP Group in Croatia is expected to rise from the current 4.4% to approximately 10%.

The HNB council also approved on April 12 a decision taken by Societe Generale – Splitska banka d.d.’s supervisory board to appoint Slaven Celic as chairman and Balasz Balogh and Balazs Olchvary as board members.

OTP’s CEO Sandor Csanyi said on April 12 that OTP Banka expected to close the acquisition of Splitska Banka from Societe Generale by the end of April.

In December, OTP Bank signed an agreement to buy Splitska Banka. The transaction was expected to close in summer 2017, whereas the integration process may be completed by mid-2018, OTP said in December.

The acquisition price was not disclosed. Splitska Banka had a book value of HRK3.5bn (€471mn) at the end of 2015, and it had 3.4% return on equity (ROE), which was the second best in the country.

Hungary’s largest lender, OTP has long suggested that it is looking for acquisition opportunities, primarily on the markets where it is already present. OTP Bank has been present in Croatia since 2005 and its operation has been continuously profitable even during the economic crisis that started in 2008.

OTP’s decision to acquire Splitska Banka demonstrates the Hungarian lender’s confidence in the Adriatic country, despite an ongoing dispute between lenders and the Croatian government over its Swiss Franc loan conversion programme.

Related Articles

Bank Melli Iran London reopens offshore bank in Hong Kong

Bank Melli Iran London PLC announced on September 18 that it has reopened its former branch in Hong Kong after several years of closure, Islamic Republic News Agency reported. British-registered ... more

Ukraine places $3bn in 15-year Eurobonds at 7.375%

Ukraine has placed $3bn in 15-year Eurobonds at 7.375% per annum, Ukrainian President Petro Poroshenko said during a meeting with international investors in New York on September 18. "Ukraine has ... more

Iran introduces its own rating system for banks

Governor of the Central Bank of Iran (CBI) Valiollah Seif has announced that his institution is to launch a national rating system for banks, Iran Labour News Agency reported on September 17. ... more

Dismiss