On 9 December, the general assemblies of Hungary’s MKB Bank and Takarékbank accepted the second milestone in the merging process of the two financial institutions. Furthermore, the general assembly of the MKB Bank decided to raise capital. The two banks will operate as one from 1 May 2023 under the new name MBH Bank Nyrt., with a common identity and image.
The base capital of the MKB Bank Nyrt. will be raised by more than HUF 23 billion (EUR 54.8 million) from 9 December. As a result, the base capital of the financial institution will reach HUF 322 billion (EUR 763 million), providing additional stability for the bank’s owners and customers.
Based on the plans of the Hungarian Bankholding, the two banks’ fusion will be realised on 1 May 2023. Takarékbank will merge into the MKB Bank, they said. That will mark a historic fusion not only in Hungary but also in the Central European region, the statement of the Hungarian Bankholding cleared.
Until then, the two banks will harmonise their internal operation process and will develop their IT systems. Thanks to the fusion, a universal bank will be born, offering quality services for both residential and business clients. The new bank will have a balance sheet total reaching HUF 11 thousand billion (EUR 26.2 billion). Thus, it will be Hungary’s second-biggest bank, with almost 2.3 million clients. Furthermore, it will be a market leader in several segments of the country’s financial system, index.hu said.
The new bank will be in Hungarian ownership and plans to have a more modern office network. From May 2023 on, they will renew the bigger, so-called “flagship” offices following the new brand of the MBH Bank Nyrt. first. Afterwards, the smaller offices will be rebranded.
The introduction of the new brand will progess in parallel with different sponsor programs and social responsibility initiatives. Furthermore, they will pay special attention to making the transition period easier for the clients. The final step of the fusion is acquiring the permission of the Hungarian National Bank, which is in progress.