Erste Bank has received regulatory approval to acquire the Hungarian subsidiary of Commerzbank. Migration preparations are already underway and the transaction is expected to be completed in the second half of 2022 with the integration of Commerzbank's Hungarian subsidiary, which will allow Erste to further expand its corporate business.
According to a statement by Erste Bank Hungary, the parties continue to expect a smooth transition, with customers receiving all relevant information directly. Following the closing of the transaction, Commerzbank's customers will also have access to Erste Bank's wide range of services.
On December 17, 2021, Frankfurt-based Commerzbank AG entered into an agreement with Erste Bank Hungary Plc. to sell its Hungarian subsidiary. The sale of the Hungarian subsidiary is part of the Commerzbank 2024 Strategy, announced in February 2021, under which the bank will exit certain international markets, including Hungary, in order to rationalize its network.
Commerzbank AG set up its Hungarian subsidiary nearly 30 years ago, with offices in three cities in addition to its Budapest headquarters. Commerzbank Plc. employs around 100 people and serves local and international corporate clients, supporting Hungarian companies' domestic, German and global activities as well as the Hungarian business of German and international clients. The bank has a strong market presence in Hungary in corporate lending, trade finance and foreign exchange.
Following the completion of the acquisition, Erste Bank Hungary plans to integrate Commerzbank Plc. into its own organization. The transfer of corporate customer accounts is expected to take place in the second half of 2022, with customer servicing continuing as usual. Both banks expect a smooth transition.
Following the acquisition, Erste Bank's market share in the corporate lending segment will increase to over 10%. Erste Bank's corporate business is growing dynamically, having tripled its corporate loan portfolio in the last five years. Its annual growth rate of more than 20% is well above average, moving it from ninth place to the sixth largest player in the market.
This is coupled with the bank's consistent top ranking in corporate customer and partner satisfaction surveys over the last four years. Erste Bank's corporate business focuses on serving large corporates, small and medium-sized enterprises and commercial real estate financing. Its healthy risk profile and high employee engagement index provide a solid foundation for sustainable growth, the statement points out.


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