OTP Bank buys the business unit of AXA Bank in Hungary

AXA Bank Europe SA and OTP Bank signed a business unit purchase agreement with AXA Bank Hungary. The transfer of the business unit agreement includes AXA Bank's retail credit and savings, as well as corporate area and the employees of AXA Bank.

The retail-focused AXA Bank is present in Hungary since 2009. AXA Bank offers innovative online customer service in the savings business, and it is mainly considered to be strong in mortgage lending in the domestic market. After the completion of the purchase OTP Bank's mortgage portfolio will increase with almost 25%.

The largest Hungarian financial institution considers it extremely important for many years to be able to increase its lending activities on the Hungarian market, therefore the decision to purchase AXA Bank's portfolio is a logical step in accordance with the management's strategy.

The management expects both the market and the supporting environment to lead into the direction of the growing credit demand.

"In line with the bank's strategy we recently examined our acquisition opportunities in a number of countries including Hungary. This lead to a growing market presence with bank purchases in a number of countries. The purchase of this current portfolio is an important step in terms of our operations in Hungary.

We are confident that AXA Bank customers will find the solutions that best fit their needs among the complex financial services offered by OTP Bank"- said László Wolf, OTP Bank's Commercial Banking Division Deputy General Manager.

It has been a priority for AXA Bank Europe SA, the owner of the Hungarian branch, to make a deal with a business partner that is capable of maintaining the innovative financial solutions and high-quality direct banking services in the future which AXA Bank’s digitally sophisticated clients have been accustomed to.

AXA Bank’s clients do not need to do anything in connection with the transaction for now, the terms and conditions of all contracts currently remain unchanged. Until the closure of the transaction AXA Bank will continue to offer the usual high-quality services to its clients, who can continue banking through the customary channels in the usual manner.

"We plan to complete the integration process after we have received all the necessary supervisory approvals at the end of this year" - said Laszlo Wolf.

OTP Bank and AXA Bank Europe SA will do their best for a smooth transaction and a positive customer experience. The parties have agreed not to disclose the financial details of deal.