Erste Group Resinstates 100% Stake in Erste Bank Hungary

Erste Group Bank AG has repurchased EBRD's 15% stake in Erste Bank Hungary (EBH), making it the sole 100% shareholder of Erste Bank Hungary.

In mid-November, it was announced that the European Bank for Reconstruction and Development (EBRD) would also return its 15% stake in Erste Group's Hungarian subsidiary to the Austrian banking group. The decision follows the Hungarian state's withdrawal from the bank, according to a statement by a senior EBRD official.

Francis Malige, the EBRD's managing director for financial institutions, said the original purpose of their investment in 2016 was to help recapitalize the Hungarian bank while maintaining positive relations with the authorities. He added that "the government's recent exit (from Erste Bank Hungary) means that there is no longer state ownership in the subsidiaries of Western banking groups", which he said was a good sign for the stability of the sector. Malige also noted that following Erste's call last Friday, their shareholding in EBH has been fulfilled. They are now moving forward with the return of their stake to Erste Group on the terms agreed during their 2016 investment.

IWhat has now been announced is that, on the basis of the minority stake purchase agreement between Erste Group Bank AG and the EBRD of December 7, 2023, Erste Group Bank AG repurchased on December 11, 2023 the EBRD's 15% stake in Erste Bank Hungary, thus becoming the sole 100% shareholder of Erste Bank Hungary.