Austria’s Erste Bank has inked a deal with BNP Paribas to buy the French group’s wealth management unit in Hungary, according to Radovan Jelasic, chief executive of Erste’s Hungarian arm.
Speaking at a press conference, Jelasic said the move demonstrates Erste’s commitment to the central European country.
He added that the acquisition is expected to close in November, once the Hungarian competition regulator gives it the nod.
According to the Budapest Business Journal, the deal will add a further HUF 60.00 billion (USD 267.54 million) of assets managed by Erste’s private banking arm, bringing the total to more than HUF 200.00 billion.
The paper also noted that the Austrian financial institution’s share of the wealth management market will increase from 9.0 per cent to 12.0 per cent as a result of the transaction.
Erste entered the Hungarian market in 1997 with the purchase of state-owned Mezobank, which was renamed Erste Bank Hungary the following year.
The business provides a full range of services to retail and corporate clients, and according to its website, is the second-largest bank in the country by customer numbers and retail loan portfolio size.
Erste Bank Hungary was further expanded in 2004 with the addition of Postabank, which the Austrian group privatised and combined with its Hungarian arm.
Earlier this year, Erste made an offer to acquire all the remaining shares it doesn’t already own in Banca Comerciala Romania, further strengthening its central European presence.
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