GE mulling options on sale of Czech banking unit

By bne IntelliNews November 26, 2015

General Electric is mulling its options to offload Czech unit GE Money Bank, local media reported on November 26.

GE has reportedly hired JP Morgan and Goldman Sachs to advise it on a strategy for the sale the unit, Hospodarske Noviny reports, citing unnamed sources. The US giant is in the midst of a push to sell many of the assets in its financial group, but although the Hungarian government bought it out of its business there, the disposals of the Polish and Czech units are proving tricker.

Having revealed its intention to sell in April, the US group is now considering two options for the Czech business - to find a strategic investor or to list the bank on the Prague Stock Exchange. “GE is evaluating all options regarding the sale, but no decision has been taken yet," a spokesperson told HN. As part of preparations to sell the bank, GE is asking its clients to vote on a new name.

GE said in the spring that it plans to sell the Czech unit within the next two years. However, nine months down the road it appears unsure of the strategy to find a buyer. Earlier this year, the US group sold Budapest Bank to the Hungarian government for $700mn. It is also pushing to sell Polish lender BPH, but M&A on that market has stalled this year due to numerous uncertainties dogging the sector.

GE is the third foreign bank looking to sell operations in the Czech Republic, which is an extremely stable, but somewhat unexciting, market. While major banks such as Ceska Sporitelna, CSOB and Komercni Banka benefit from a high volume of small margin business, there's little action on the market to boost the fortunes of smaller players. The Czech unit of GE Money Group, the country’s six largest bank by assets, closed the first half of the year with net profit of CZK2.5bn (€92mn), up 14% y/y.

Citibank sold its retail banking business in the country to Austria’s Raiffeisen Bank International in September. RBI, on the other hand, sold its agreed to sell its Czech and Slovak internet banking unit Zuno to ABH Holdings SA, the Luxembourg-based parent company of the Russia’s largest privately-owned bank Alfa. 

Related Articles

Moscow-based International Investment Bank expands into financing Polish imports

The Moscow-based International Investment Bank (IIB) has further expanded its operations under the Trade Finance Support Programme (TFSP) and issued the first loan supporting Polish imports to ... more

Ukraine's PrivatBank reports €4.7bn losses in 2016

Ukraine's recently nationalised leading lender Privatbank reported UAH135.3bn (€4.7bn) of losses in 2016, down from a profit of UAH0.2bn a year ago. A key factor that resulted in such losses was ... more

Azerbaijanis rush to convert dollars into manats after burst of appreciation

The unexpected appreciation of the Azerbaijani manat in February has sent banks into a dollar-selling frenzy, sources in Baku have informed bne IntelliNews. In the past week, the manat has ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss