OTP’s Croatian subsidiary to buy Splitska Banka

By bne IntelliNews December 22, 2016

The Croatian subsidiary of Hungary’s OTP Bank has signed an agreement to buy Splitska Banka, owned by the French Société Générale Group, OTP announced on December 21.

Hungary’s largest lender OTP has long suggested that it is looking for acquisition opportunities, primarily on the markets where it is already present. Press reports earlier this month suggested that OTP had also made an offer to buy United Bulgarian Bank, Bulgaria’s fourth largest bank.

Societe Generale Splitska is the fifth biggest lender in Croatia, active both in the retail and 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%. “OTP Bank has been present in Croatia since 2005 and its operation has been continuously profitable even during the economic crisis started in 2008,” OTP said in a statement.

The closure of the transaction is expected in the summer 2017, whereas the integration process may be completed by mid-2018, OTP said. The acquisition price was not disclosed. Splitska Banka had a book value of HRK3.5bn (€464.7mn) at the end of last year, and it had 3.4% return on equity (ROE), which was the second best in the country, Portfolio reports.

Croatian lenders have been at odds with the Croatian government over the Swiss Franc loan conversion programme. However, OTP’s decision to acquire Splitska Banka is market positive, showing the Hungarian lender’s confidence in the Adriatic country.

In the third quarter, OTP’s net profit pushed to an eight-year high of HUF69.79bn (€224.9mn), and assets stood at HUF10.95tn. On the back of the announcement the share price of OTP rose 1.2% on the Budapest Stock Exchange (BSE).

Related Articles

Russian central bank governor Nabiullina to be nominated for further five-year term

The governor of the Central Bank of Russia (CBR), Elvira Nabiullina, will be nominated for another five-year term, President Vladimir Putin told the country’s top banker on March 22. The nomination ... more

Iran "hits impasse" in bid to set up Bank of England clearing accounts

Iran is failing to make headway with a request to the Bank of England (BoE) to set up special clearing accounts for its banks, Reuters reported on March 20. Sources said the BoE ... more

IMF delays new $1bn tranche to Ukraine due to Donbas blockade

Ukraine's main donor, the International Monetary Fund (IMF), has cancelled a board meeting scheduled for March 20 that was expected to see the release of a $1bn tranche to Ukraine, while demanding ... 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