KBC signed the acquisition agreement with OTP Bank, the parent organisation of OTP Banka Slovensko in February 2020
Belgium-based multi-channel bank-insurer KBC completed the previously announced acquisition of 99.44% stake in OTP Banka Slovensko.
KBC signed the acquisition agreement with Hungarian financial services company OTP Bank, the parent organisation of OTP Banka Slovensko, on 17 February 2020.
The transaction was approved by 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, said the company.
Also, the remaining shares in the company, not included in the transaction are held by several private individuals.
KBC Group CEO Johan Thijs said: “Acquiring OTP Banka Slovensko further strengthens our share of the Slovakian market, where we are already present through ČSOB since 2002. We will be able to benefit from economies of scale and increase our visibility in this highly competitive market, to the advantage of all our stakeholders.
“This transaction 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 all our core markets. It will create opportunities for us to offer high-level financial solutions to an even wider range of customers.
“I am convinced they will benefit significantly from the future merger of ČSOB and OTP Banka Slovensko, as they will gain access to high-quality, modern and innovative financial services enabled by digital technologies, as well as a personal and professional approach.”
OTP Banka Slovensko acquisition to have minimum impact on KBC’s capital
The transaction is expected to have only a limited impact on KBC’s capital position, keeping its third quarter 2020 CET1 ratio at 16.6%—above the required minimum capital requirement.
With the closing of the acquisition KBC Bank becomes the new parent company of OTP Banka Slovensko, and the next logical step is the legal and operational merger of Československá obchodná banka (ČSOB) and OTP Banka Slovensko.
The merger is expected to further strengthen ČSOB’s current position on the Slovakian banking market, on the basis of assets, with a market share of around 12.6%.
OTB Banka Slovensko’s is expected to retain its current brand name, to ensure a smooth transition, and the bank would continue its operations and provide professional services to its customers, with support from ČSOB.
OTP Bank chairman and CEO Sándor Csányi said: “Our entry into the Slovakian market will always be memorable for us, as it was our first step on the path to becoming a regional banking group that is currently active in over 10 countries.
“I would like to thank our management and staff at OTP Banka Slovensko for their professional and devoted work of nearly two decades. During this time, our subsidiary bank has been a stable market player providing high-quality services in Slovakia.