OTP Bank Romania and the National Bank of Greeks have signed a contract for the sale of Banca Romaneasca. The financial details of the transaction are not to be disclosed by the parties, the Hungarian financial group announced in a statement to MTI on Thursday.
The Reuters news agency, citing Athens sources, announced last Friday that OTP Bank will acquire the Romanian bank of the National Bank of Greece (NBG), Romania’s Banca Romaneasca financial institution.
The OTP Communication on Thursday added that as a result of the acquisition OTP Bank Romania (OBR) will increase its market share to around 4%, making it the 8th largest player in the Romanian banking market.
The financial closing of the transaction is expected to take place after the approval of the supervisory authorities by the beginning of 2018, they added.
Based on Banca Romaneasca’s balance sheet total last year, its market share of 1.62 percent is the 14th largest bank in Romania, active as a universal bank in both the retail and corporate segments. At the end of last year, the balance sheet total of Banca Romaneasca and other assets was EUR 1,570 billion, its gross loan portfolio was EUR 1,148 billion and its equity was EUR 145 million. The financial institution’s return on equity (ROE) for the past two years was 3.8 and 8.2 percent respectively. The bank’s credit quality is adequate. 85 percent of the retail loan portfolio is a mortgage-backed loan. At present, Banca Romaneasca employs 1148 employees, operates 109 branches and 118 ATMs. 0.72 percent of the financial institution is owned by small investors – OTP reported.
Source: MTI / Image: BankingFrontiers /