Eurobank Acquires Piraeus Subsidiary in Bulgaria
An agreement for the transfer of Piraeus Bank’s subsidiary in Bulgaria (PBB) to Eurobank’s arm in the neighboring country, Eurobank Bulgaria (Postbank), was confirmed on Wednesday by both Greek banking groups, reports Ekathimerini.
This acquisition strengthens Eurobank group’s presence in the Bulgarian market, raising its market share in the Balkan nation to above 10 percent and helping it climb to third place in terms of loan issues.
PBB is active mainly in retail banking, particularly in corporate banking. Based on September 2018 figures it has total assets of 1.7 billion euros, loans of 820 million euros and deposits adding up to 1.3 billion. It employs 900 workers and has a network of 70 branches.
The price of the takeover comes to 75 million euros and will only have a marginal impact on Eurobank’s capital.
Upon completion of the transaction Postbank will have total assets of more than 5 billion euros, own funds of over 600 million euros. After the full implementation of the synergies anticipated, the results before provisions (payment protection insurance – PPI) will add up to 150 million euros and net results should exceed 70 million euros. Postbank expects to continue enjoying a robust capital base and strong liquidity after the acquisition.
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