KPMG Deal Advisory acted as the buy-side M&A advisor and successfully advised ČSOB´s shareholder KBC Group realize strategic acquisition of OTP Banka in Slovakia.

KBC Group and the Hungarian OTP Bank have entered into an agreement under which KBC will acquire a 99.44% stake in OTP Banka Slovensko. The remaining 0.56% stake is owned by minority shareholders. The transaction was closed in November 2020 following regulatory approvals from the National Bank of Slovakia (NBS), the National Bank of Belgium (NBB), the European Central Bank (ECB) and the Antimonopoly Office of the Slovak Republic.

OTP Banka Slovensko, a.s. operates on the Slovak market as a universal bank. Since 4 April 2002, OTP Bank Plc., Hungary’s largest bank, has been the majority shareholder of OTP Banka Slovensko, a.s. At the end of 2019, OTP Banka Slovensko, a.s. had a market share of 1.75 % in deposits and 1.85 % in loans. It currently operates a network of 58 branches throughout Slovakia and serves roughly 176 000 retail customers and 14 400 corporate/SME customers.  The bank is based in Bratislava and the bulk of its business relates to banking products and services provided to individuals and legal entities within the Slovak market.

Sándor Csányi, OTP Bank Chairman and CEO: ’Following the successful financial closing of the transaction, in line with our strategy, we will continue to investigate possible acquisitions actively in the region, primarily in countries where we are already present.’

Belgium-based KBC Bank NV is the parent company and sole shareholder of Československá obchodná banka, a.s. (ČSOB). ČSOB is a leading Slovak bank boasting over 50 years of tradition. It is one of the most significant and strongest financial institutions on the Slovak market. As a universal bank, it provides services to a full range of customers including retail, self-employed, SME, corporate and institutional customers. It is part of the ČSOB Financial Group, which also includes ČSOB Stavebná sporiteľňa, a.s. (building society), ČSOB Leasing, a.s., ČSOB Real, s.r.o., ČSOB Advisory, s.r.o. and ČSOB Nadácia (foundation). ČSOB Poisťovňa, a.s. (insurance company) is a sister company of ČSOB.

The acquisition of OTP Banka Slovensko, a.s. will chiefly boost retail operations and market share in:

• Mortgages (from 12.9% to 14.8%)
• Consumer loans (from 4.7% to 8.2%)

Based on the group’s banking and insurance model, ČSOB Poisťovňa, a.s., ČSOB Leasing, a.s. and KBC Asset Management will also benefit from the acquisition through cross-selling products and services to OTP Banka Slovensko’s retail customer base.

Johan Thijs, KBC Group CEO: ’This transaction is fully in line with our strategy, which focuses on becoming the reference bank-insurance group for retail customers, small and medium-sized enterprises and midcaps in all our core markets.’

Daniel Kollár, CEO of ČSOB Bank Slovakia and Country Manager concluded: ‘Transaction marks an important milestone for ČSOB. Merging OTP Banka Slovensko into ČSOB will substantially strengthen our banking and insurance franchise in the country and further enhance our cross-selling potential with ČSOB Poist’ovňa, a.s., ČSOB Leasing, a.s., and KBC Asset Management.’

Read more about the deal.

KPMG acted as the buy-side financial advisor to KBC Group on the acquisition. KPMG provided comprehensive advisory services throughout the transaction, from due diligence to negotiation with seller, assistance in communication with regulators and integration planning.