OTP Bank is expanding in Serbia

The representatives of the National Bank of Greece (NBG) and OTP banka Serbia (OBSr) have signed the agreement on the sale of Vojvodjanska banka, NBG Leasing and other Serbian exposures of the NBG Group. The agreed consideration for the share capital of Vojvodjanska banka and NBG Leasing amounts to EUR 125 million. As a result of the acquisition, the market share of OTP banka Serbia will rise to 5.7 percent, thus it will become the 7th largest bank of the Serbian banking market.

“Over the recent years, OTP banka Serbia has achieved continuous growth and, according to our expectations, this positive trend is set to continue and will be effectively assisted by this acquisition," said László Wolf, deputy CEO of OTP Bank. “Our strategic goal is to increase our market share in the countries where we are present. Following the transactions in Croatia and in Romania, this is the third bank acquisition we have performed in recent months. Nevertheless, we will continue to follow closely the opportunities for acquisition, since we are dedicated to reinforcing our presence in the region. The financial closure of the transaction will be completed subsequent to the issuing of the necessary official permits, most likely by the end of this year”, added László Wolf.

“This acquisition will continue to reinforce OTP Bank’s presence in Serbia and will facilitate the Bank’s long-term profitable operation”, added Predrag Mihajlovic, CEO of OTP banka Serbia. “We hope that Vojvodjanska banka’s more than 1 million retail customers will be satisfied with the high quality product range and services offered by OTP Group,” added the CEO.

With its market share of 4.2% according to its balance sheet total at the end of 2016, Vojvodjanska banka is Serbia’s 9th largest bank with a significant retail customer base as well as an active operator of the corporate segment as a universal bank.

In 2016, Vojvodjanska banka and the other Serbian assets subject to the transaction, on a consolidated basis, represented a total assets of EUR 1.173 million and gross outstanding customer loans of EUR 810 million. In the last two years, the transaction perimeter generated a return on equity ratio (ROE) of 1.9% and 2.3%, respectively. Currently, Vojvodjanska banka has 1,405 employees, 105 branch offices and 138 ATMs.

No actions are required of Vojvodjanska banka’s customers in relation to the transaction. The financial closure of the transaction is expected to be completed by the end of the year 2017. OTP banka Serbia and Vojvodjanska banka will make every effort to ensure the seamless integration of the financial institutions.