Central and eastern Europe’s second-biggest lender Raiffeisen Bank International will not be selling its Hungarian unit, despite media reports to the contrary.
There were rumours that the small Hungarian lender Szechenyi Bank, which is 49% government-owned, was negotiating a purchase after Raiffeisen’s announcement in November that it wanted to review offers.
Go deeper with GlobalData
However two sources have revealed to Reuters that Raiffeisen have decided against a deal at its current low price as it would lead to unacceptable losses.
Raiffeisen has so far remained silent on the matter.
The unit lost 81m ($110m) in the nine months to September 2013. Hungary’s banking sector has suffered a great deal since the 2008 financial crisis due to government measures to help foreign currency loan-holders. Raiffeisen said it wanted to sell in order to focus on more promising markets.
Prime Minister Viktor Orban has insisted that the predominently foreign-owned banking sector is undesirable and that 50% of the banking sector should be domestically owned.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataHungarian National Bank (which is also country’s financial regulator) spokesman Istvan Binder has revealed that applications for licenses have not been sent fromeither of the banks in question.
"For sale, the license of the National Bank of Hungary would be needed," he said.
Related articles:
Raiffeisen and SOFORT AG confirm strategic cooperation
Comarch unveils new banking solution in UK
IND Group unveils mobile banking app Essence
