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).
The European Central Bank (ECB) President Mario Draghi said on March 8 that the Eurozone’s central bank will seek clarity on what role the Latvian central bank governor Ilmars Rimsevics has ... more
The Azerbaijani government has finished taking over $2.2bn worth of external debt owned by the country's largest bank, International Bank of Azerbaijan (IBA), APA news agency reported on March 5 ... more
As Iran gets closer to Persian New Year’s Day (March 21), the great numbers of people wanting to travel abroad for the holidays are becoming increasingly anxious about the apparent evaporation of ... more