Romania’s leading lender Banca Transilvania takes over OTP Bank’s subsidiary

By bne IntelliNews February 12, 2024

Romania’s largest financial group by assets, Banca Transilvania (BVB: TLV), announced that it had signed a contract to take over 100% stakes in all the subsidiaries operated by Hungarian group OTP Bank in Romania. The deal is pending regulatory approval.

The three subsidiaries operated by OTP are the OTP Bank (Romania) bank, a leasing company and an assets management firm.

The total price set for the subsidiaries is €347.5mn, or, according to Ziarul Financiar estimates, 0.75% of their net assets (net worth).

OTP Bank decided last year to sell its Romanian subsidiaries after they failed to reach a critical mass through organic growth or takeovers.

“We have achieved substantial organic growth in recent years, but it has become clear that we cannot achieve our strategic growth target without acquisitions. And there is little prospect of potential acquisitions in the foreseeable future,” said Sándor Csányi, chairman and CEO of OTP Bank.

OTP Bank (Romania) is the fourth bank to have been acquired by Banca Transilvania in almost a decade, after taking over Volksbank Romania, Bancpost and Idea Bank. 

“For the BT Group, the acquisition of OTP Group's business in Romania is an opportunity to strengthen our leading position and contribute to the consolidation of the Romanian banking market. We will continue pursuing our ambitious plans [through] organic growth, but also maintaining an active role in further M&A possibilities,” said Horia Ciorcilă, chairman of Banca Transilvania's board of directors.

OTP Bank (Romania) is the eleventh largest bank in Romania by assets, with a market share of 2.64% (as of September 2023). It currently serves close to 420,000 retail customers and more than 22,000 corporate/SME customers thanks to its 1,800 employees and a network of 96 branches.

Banca Transilvania is the market leader with a 19.91% share. It has more than 4mn customers, around 10,000 employees, leading-edge online banking solutions, and a strong branch network countrywide.

Related Articles

Romania’s BRD bank reports smaller profit but strong lending in Q1

BRD Groupe Société Generale group, which operates Romania's fourth-largest bank by assets, reported its net profit dropped by 4.6% y/y in Q1, but said ... more

APS, EBRD buy €400mn sub-performing Romanian loans from Piraeus

The European Bank for Reconstruction and Development (EBRD) announced that alongside debt recovery specialist APS it is taking over a ... more

Moldova’s largest lender maib puts Bucharest exchange listing on hold

The largest bank in Moldova, Moldova Agroind Bank (main), announced it is postponing its plan to list on the Bucharest Stock Exchange (BVB) because certain provisions in Moldovan legislation make the ... more