KBC Group KBC finalises acquisition of OTP Banka Slovensko (Slovakia)
Joint Press Release
Outside trading hours – Regulated information*
Brussels, Budapest, Bratislava – 26 November 2020 – 6 p.m. CET
KBC finalises acquisition of OTP Banka Slovensko (Slovakia)
Belgium’s KBC Group and OTP Bank, the Hungarian parent company of OTP Banka Slovensko (Slovakia), today closed the agreement announced on 17 February 2020 for KBC Bank NV to acquire ownership of 99.44% of the shares in OTP Banka Slovensko, a.s. (OTP Banka
Slovensko). The remaining shares are held by a number of private individuals.
The transaction received regulatory approval 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. It has only a limited impact (-0.2%) on KBC’s solid capital position, keeping KBC’s excellent 3Q2020 CET1 ratio of 16.6% (Basel III fully loaded, Danish compromise) well above regulatory minimum capital requirements.
As a result of the transaction, KBC Bank NV is now the new parent company of OTP Banka Slovensko. The next logical step is the legal and operational merger of Československá obchodná banka, a.s. (ČSOB) and OTP Banka Slovensko, which will further consolidate ČSOB’s current number four position on the Slovakian banking market in terms of assets, with a market share of approximately 12.6%.
OTB Banka Slovensko’s brand name will initially remain in place to ensure a seamless transition. In the meantime, OTP Banka Slovensko, with the full support of ČSOB, will continue to honour its commitments to the market and to provide professional service of the highest level to all its customers, who will not have to take any action as a result of the transaction.
Johan Thijs, KBC Group CEO, welcomes today’s transaction: ‘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.’