Hungary’s OTP Group has completed the most significant acquisition in its history: the purchase of the Slovenian bank Nova KBM. The financial institution was previously owned by Apollo Funds and the European Bank for Reconstruction and Development (EBRD), OTP announced on the website of the Budapest Stock Exchange on Monday.
The transaction will give OTP Group a stake of around 30 percent in the Slovenian banking market, including SKB Bank, which was acquired in 2019. The integration of the two Slovenian subsidiaries is expected to be completed in 2024. The new bank will be the group’s largest foreign subsidiary bank, OTP stated.
Sándor Csányi, CEO of OTP Bank, said that the closing of the transaction not only reinforces the bank’s long-term commitment to Slovenia, but also shows that the group is stable and well-capitalized, it has outstanding liquidity, and management is committed to strengthening its regional presence.
He predicted that banking products and services will be further developed, with branches and ATMs made easier to access. Csányi additionally promised an increase in digital and innovation capabilities. John Denhof, CEO of Nova KBM, noted that they are looking forward to the planned merger of the two financial institutions and believe that the winners of the integration will be their customers and employees.
Anita Stojčevska, CEO of SKB Bank, explained that the financial institution she manages has been successfully integrated by OTP Group over the last three years, and they will share their knowledge and experience with their new colleagues. According to the statement, Apollo Funds and the EBRD have owned Nova KBM for six years, during which time the financial institution has undergone a major transformation with the integration of four banks.
OTP Group is present in 11 countries, a number that will increase to 12 following the completion of an ongoing acquisition in Uzbekistan. It currently provides financial services to nearly 16 million customers with more than 33,000 employees.
