Budapest Bank and MKB will merge under MKB Bank Plc. name in the spring of 2022

According to the plans of Hungarian Bankholding, Budapest Bank and MKB Bank, the two member banks of the banking group will merge on 31 March 2022, thus creating the basis for the unified operation of the banking group. The merged banks will temporarily continue to operate under the name MKB Bank Plc. The Takarék Group will join the merged bank in the second quarter of 2023, while Hungarian Bankholding will continuously harmonize banking operations. At the same time, the complete management of Bankholding will take over the responsibilities of the senior management of the member banks, so the operation and management of the Hungarian Bankholding group will be unified, thus simpler and more efficient. The merger plans will be approved by the owners in mid-December.

Today, MKB Bank, listed on the Budapest Stock Exchange, published the proposals of the company’s general meeting to be held on 15 December 2021, after the professional management of Hungarian Bankholding submitted a timetable to the owners for the merger of Budapest Bank, MKB Bank and Takarék Group, the creation of a superbank with a key role in the Hungarian financial market.

Budapest Bank and MKB Bank will merge

The first significant step of the triple bank fusion, the merger of Budapest Bank and MKB Bank, is planned to take place on 31 March 2022. As part of the merger, Budapest Bank will be merged into MKB Bank. The merged banks will temporarily continue to operate under the name MKB Bank Plc. Takarék Group is scheduled to join the merger in the second quarter of 2023, all the while the establishment of a unified banking operation will take place continuously.

“As a result of the intensive planning work of recent months, the timetable for the triple bank merger is established. We are convinced that with the implementation of our strategic plans, the merger and transformation of the three banks can be successfully completed, which is a unique professional task at an international level as well. Our goal is to build the most modern bank in Hungary: with core values such as stability and reliability, it will be able to radically change the customer experience related to financial services with its digital solutions,”

said Zsolt Barna, Chairman of the Board of Directors of Hungarian Bankholding Ltd.

The merger does not represent a change in the ownership structure of the banking group; Hungarian Bankholding Ltd. continue to be the owner of the banks participating in the merger process.

The products and services of Budapest Bank and MKB Bank will continue to be available on the interfaces and in the manner they used to. Following the end of March 2022 merger, customers will still be able to conduct banking affairs at their home bank branches. Hungarian Bankholding pays special attention to ensuring that the steps of the merger process take place smoothly for customers, with the usual high level of service.

Forward-looking name

The merged bank, which will be established on 31 March, will temporarily operate under the name MKB Bank Plc. The final brand name and image of the single financial institution is scheduled to be introduced in early 2023; the development of these has begun as part of a professional branding process. The goal is to build an attractive brand for customers that transforms the traditional image of financial institutions, unifies them and points to the future.

The establishment of a unified organizational management structure

From November 15, the Deputy CEOs and Managing Directors of Hungarian Bankholding will adopt the professional and employment law management of the member banks.

The unified organizational governance structure to be implemented by the end of the year will establish a clear corporate governance system in Hungarian Bankholding and its member banks, including Takarékbank Ltd. and Takarék Mortgage Bank Plc., which will help to improve the operational efficiency of member banks and to simplify the management of the companies.

The implementation of the plan to establish the superbank in two stages will also require the approval of the owners of the banking group, which will take place on 15 December 2021.

Digital developments are in full swing

A key element of the strategy of Hungarian Bankholding is digital banking, which means the introduction of internationally leading fintech solutions. Accordingly, an innovative banking world with the highest level of user experience is being developed, which will initially provide solution to the daily banking needs of clients. The new banking world will be gradually available to existing and future customers from the second half of 2022.

The technological transformation of the banking group is managed by Balázs Vinnai and Roland Pecsenye, internationally recognized experts in the digital banking sector.

The aim of the developments is to make the emerging universal large bank the most modern financial service provider in Hungary, for which it will introduce flexible, fast solutions and products that can be combined with each other.

Long-term construction

Based on the five-year strategy approved in March for the merger of the member banks of Hungarian Bankholding, the full operational fusion of the three credit institutions is planned to be concluded in 2023. The integration of the three member banks is unique not only in Hungary, but also in the financial markets of the region, mainly due to its complexity and size.

The banking group the second largest market player in Hungary in terms of balance sheet total, and it also has the largest branch and ATM network. It is a market leader in a number of areas, such as corporate lending, within that the lending to the micro, small and medium-sized enterprise sector as a key aspect of the national economy, and the leasing market. The business unit serving the agriculture sector – which accounts for 4% of gross domestic product – is the number one market player. The group also has a strong position in the private banking market.

“The Hungarian Bankholding group is a key player in the domestic financial sector, combining the strengths of three extremely stable banks. In parallel with the mergers, we pay special attention to the quality service of our customers and the smoothness of everyday administration, which is the basis of our business success. We also play a key role in the economic recovery following the coronavirus epidemic, both through our market financing activities and state-subsidized constructions,” 

said József Vida, CEO of Hungarian Bankholding Ltd.

The forming superbank will introduce flexible, internationally leading digital solutions and will build on the strengths, values and best practices of the three strong domestic commercial banks, including the many decades of expertise accumulated by member banks, or their commitment to high-quality customer service. The emerging large bank aims serve the full market spectrum and all customer segments in the future, with a significant emphasis on the provision of new, affordable and modern range of products and services to retail, micro, small and medium-sized enterprise and agricultural customers.

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