Hungarian OTP Bank leaves Romania after 20 years
The Hungarian financial giant, one of Central Europe’s biggest banks, OTP Bank, will leave Romania after 20 years of service.
According to 444.hu, the OTP Bank entered the financial market of Hungary’s Eastern neighbour in 2004. Yesterday, they announced they would leave it, selling all their assets to the biggest Romanian bank, Banca Transilvania. The Hungarian media outlet learned that the transaction will reach almost EUR 350 million. The deal is closed, but several Romanian authorities, including Romania’s national bank, must approve it. If they give the green light, Banca Transilvania (which means Transylvanian Bank in Romanian) will convert all OTP bank subsidiaries and integrate them into their network. They even promised to keep multi/bilingual service where it is necessary.
Sándor Csányi, the Chairman and CEO of OTP Bank, said “[o]ur local bank has come a long way in the 20 years we have been in Romania, and 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.”
Market leader buys OTP Bank subsidiaries
Banca Transilvania is the market leader in Romania’s financial sector. Its Chairman of the Board of Directors declared that the acquisition would strengthen their leading position and contribute to the consolidation of the Romanian banking market. He added that they would welcome all OTP clients and employees to the BT.
The OTP Group’s brand name will temporarily remain in place to ensure a smooth transition for customers and colleagues until the merger is completed. In the meantime, OTP Bank Romania and its subsidiaries will continue honouring their commitments to their clients as well as providing professional services of the highest quality level, the joint statement of the two banks said.
Terms and conditions for OTP Bank clients will not change, so they will have nothing to do with the during and after the merger.
OTP Bank Romania S.A. controls 2.64% of the Romanian market in terms of total net assets. 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, the banks’ statement said.
Banca Transilvania is the largest bank in Romania and South-Eastern Europe with more than 4 million customers and around 10,000 employees.
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