OTP Bank sells Slovakian subsidiary

OTP Bank sells Slovakian subsidiary

After the successful financial closing of the transaction today, Belgium-based KBC Group acquired a 99.44% stake in OTP Bank’s Slovakian subsidiary, OTP Banka Slovensko.

Having obtained the necessary regulatory and supervisory approvals from the National Bank of Slovakia (NBS), the National Bank of Belgium (NBB), the European Central Bank (ECB) and the Antimonopoly Office of the Slovak Republic, the financial closing of the sale transaction executed under the agreement signed on 17 February 2020 took place today, whereby KBC Group acquired ownership of 99.44% of the shares in OTP Banka Slovensko, and thus OTP Banka Slovensko became KBC Bank’s subsidiary.

OTP Banka Slovensko is merging with ČSOB Bank, KBC Bank’s Slovakian subsidiary. KBC believes in the positive impact of the integration and welcomes OTP Banka Slovensko’s employees into the KBC and ČSOB family. OTP Banka Slovensko’s brand name will remain in place for a certain period to ensure a seamless transition for customers and staff until the merger’s completion.

In the meantime, with the full support of ČSOB, OTP Banka Slovensko will continue to honour its commitments to the market and to provide professional service of the highest level to all of its customers. Customers will not need to take any action as a result of the transaction.

‘Our entry into the Slovakian market will always remain memorable to us as it was the first step on the road that led OTP Group to become an international banking group comprising more than 10 countries. I would like to thank the management and staff of OTP Banka Slovensko for their professional and devoted work during these nearly two decades. During this time our subsidiary bank has been a stable market player providing high-quality services in Slovakia. I am fully convinced that the merger with ČSOB will provide the customers of OTP Banka Slovensko with access to numerous additional branches, a broader range of services and the support of another big banking group. After the successful financial conclusion of the transaction today, we will continue, in keeping with our strategy, to actively assess potential acquisition targets within the region, particularly in the countries where we are already present’, said Sándor Csányi, Chairman & CEO of OTP Bank.

Johan Tijs, KBC Group CEO assessed the conclusion of the transaction as follows: ‘Through ČSOB Bank, we have been present in the Slovakian banking market since 2002. Acquiring OTP Banka Slovensko will allow us to strengthen our share of the Slovakian market further, while enabling us to take advantage of economies of scale and increased visibility in this highly competitive market to the benefit of all stakeholders. As such, this deal is fully in line with our strategy, which focuses on becoming the reference bank-insurance group for retail customers, small and medium-sized enterprises and midcaps in KBC’s core markets. It will also create opportunities for us to provide high level, complex financial services to an even broader range of customers. I am convinced that our customers will significantly benefit from the coming merger of ČSOB and OTP Banka Slovensko as they will gain access to the top-notch, modern and innovative financial services afforded by digital technologies, and to a personalised and professional approach to banking.'’

Daniel Kollár, Chairman & CEO of ČSOB Bank Slovakia and Country Manager said: ‘Today’s transaction marks an important milestone for ČSOB. Merging OTP Banka Slovensko into ČSOBwill substantially strengthen our banking and insurance franchise in the country and further enhance our cross-selling potential.

I also wish to extend a warm welcome to all customers and employees of OTP Banka Slovensko, which will continue to be led by Ms. Zita Zemková, CEO of OTP Banka Slovensko. Her long-standing experience, market knowledge and management skills ensure continuity for all stakeholders and will be highly valuable in successfully integrating ČSOB and OTP Banka Slovensko into a new, dynamic and future-proof entity. At ČSOB, we believe in dynamic collaboration initiatives between employees and advocate adding valuable insights to – and gaining them from – our teams, even across borders. With this in mind, I encourage and invite our new colleagues from OTP Banka Slovensko to embrace our ČSOB community and to share their ideas, opinions and experience with us.'’

OTP Banka Slovensko operates in the Slovakian market as a universal bank. Since 4 April 2002, its majority shareholder had been OTP Bank Plc., Hungary’s largest bank. In terms of total assets, OTP Banka Slovensko has a market share of 1.75%. OTP Banka Slovensko currently operates a network of 58 branches throughout Slovakia, and serves roughly 176,000 retail customers and 14,400 corporate/SME customers. The Bank is based in Bratislava, and the bulk of its business comprises banking products and services provided to individuals and legal entities.

Belgian-based KBC Bank is a leading European financial group with 11 million customers and 42,000 employees. Through ČSOB – KBC’s subsidiary with an experience of over 50 years –, it is one of the most significant and strongest banking entities in the Slovakian market. As a universal bank, it provides services to all customer segments, i.e. retail, self-employed, SMEs, corporate customers, as well as institutional clients. The Bank is a member of ČSOB Financial Group, which also includes ČSOB stavebná sporiteľňa (building society), ČSOB Leasing, ČSOB Real, s.r.o. and ČSOB Nadácia (foundation). ČSOBPoisťovňa (insurance company) is an affiliate of ČSOB.