Mega Orbán-close bank acquires one of the biggest Hungarian financial institutions

Hungary’s MBH Bank Nyrt. today signed a share purchase agreement with Bausparkasse Schwäbisch Hall AG, the Austrian Bausparkasse Wüstenrot AG and the German Wüstenrot & Württembergische AG to acquire a 76.35% stake in Fundamenta-Lakáskassza Lakás-takarékpénztár Zrt. The transaction is expected to close in the first half of 2024, subject to obtaining the necessary permits.

Following the closing of the transaction, Fundamenta will operate as a consolidated subsidiary of MBH Bank, but as a separate entity with its own brand name and management. At the same time, Fundamenta’s customers can benefit from the stable background of a stable, well-capitalised bank with the largest nationwide branch network and a broad product portfolio, which in the long-run will allow for customers to have access to a range of new investment, insurance and loan products on favourable terms.

This acquisition means significant growth for MBH Bank: with the addition of net 480 thousand customers, HUF 530 billion in loans and HUF 570 billion in deposits, MBH’s share of the retail and residential mortgage markets is growing significantly. In addition, through Fundamenta’s strong distribution network, in the long run MBH Bank’s products will be available through new channels and to even wider audiences. The acquisition of Fundamenta will enable the bank to build a comprehensive real estate lending and savings ecosystem that will further strengthen its market position in areas such as energy efficiency lending and condominium renovations.

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Important stage in the development of the bank

MBH Bank currently has nearly two million retail and corporate clients, HUF 893 billion in equity capital, a HUF 6,200 billion gross loan portfolio and HUF 5,000 billion in deposits. The bank has a nationwide presence in Hungary through an extensive network of branches and ATMs, is a market leader in the corporate segment, leasing, agribusiness and the food industry, among others, moreover, it provides a wide range of money and capital market services, as well as investment services.

“The purchase of Fundamenta is an important stage in the implementation of our growth strategy, but the real winners of the transaction will be the customers of the two financial institutions, who will have access to an even wider range of products through more channels in the long run. Due to this transaction, a new real estate financing and savings ecosystem can be created, providing customers with unique financing options for building a home, whether it’s a property purchase or modernization,” said Dr. Zsolt Barna, president and CEO of MBH Bank.