OTP Bank Romania, subsidiary of OTP Bank Nyrt., has purchased Romanian based Millenium Bank from Portugese Banco Comercial Portugues, revealed the bank at a press conference, reported by news agency MTI. The contracts were signed on Wednesday, the purchase fee is reported to be EUR 39 million (12 billion HUF).
Millenium Bank Romania reached a balance sheet total of EUR 635 million last year, with a market share of 0.8% and making it the 22nd biggest bank in the Romanian market. With this acquisition, OTP Bank Romania’s market share is set to increase to 2.1%, taking it forward to the 11th place on the country’s banking list. Millenium Bank closed 2013 with a total loss of EUR 5.9 million.
László Diós, Chief Executive Officer of OTP Bank Romania, said at the press conference that Millenium Bank is a reliable credit institution in Romania with a strong residential orientation. With this acquisition, the presence of OTP in Romania will strengthen, especially in the residential sector, said Diós.
After the acquisition the total client number of OTP Bank Romania reaches 400.000, while branch number is close to 150, with ATMs over 160. László Wolf, deputy CEO of the bank, added the acquisition fits well into the bank’s growth strategy, calling the purchase a strategic investment.