Magyar Bankholding Zrt has approved the five-year business strategy for the merger of Budapest Bank, MKB Bank and Takarékbank, so the new unified large bank my start operations in 2023, Magyar Bankholding announced on Wednesday.
The emerging large bank intends to be the most modern bank in Hungary, which will introduce flexible, internationally leading digital solutions and reshape the traditional image of banks.
According to the press release, the purely Hungarian-owned bank is committed to becoming a market leader as Hungary's most modern, most digitalized financial service provider, serving the entire market spectrum, with special focus on its retail, micro, small and medium-sized enterprises and agricultural customers. The group will retain its market-leading corporate, agricultural and leasing positions in the new business model.
The strategy identifies several synergies in the areas of operation, governance and IT systems, the exploitation of which will help the bank increase its efficiency compared to the three banks operating on their own.
We expect growth significantly above the market average in the retail, micro and small enterprise, as well as in the agricultural segments
-the statement quoted Zsolt Barna, Chairman of the Board of Directors of Magyar Bankholding. According to the new business strategy, the bank will plough back the profits generated over the next five years.
After the transformation, the group will continue to operate the largest branch network in Hungary, and it will remain committed to serving the population living in small settlements, while aiming to become a leader with a strong digital orientation, and to compete with innovative financial service providers and large international technology companies.
"The strategy includes the introduction of internationally leading digital solutions, but at least as much emphasis is placed on creating a flexible, constantly developing organization and corporate culture based on recognizing and serving customer needs"- said Zsolt Barna.
The key owners of Budapest Bank Zrt, MKB Bank Nyrt and MTB Zrt transferred their shares to Magyar Bankholding Zrt on 15 December 2020, establishing the unified ownership structure and management of the three banks.
The new bank’s aggregated balance sheet is HUF 8.424 billion, it has HUF 3.787 billion credit volume and HUF 5.414 billion deposit portfolio, and it serves 1.4 million active retail and 208 thousand active corporate customers. The holding has a market-leading position in many areas. It operates 925 branches nationwide.
Magyar Bankholding Zrt is the second largest banking group in Hungary, in which the state owns 30.35 percent of the shares through Corvinus Nemzetközi Befektetési Zrt, while the previous direct owners of MKB have 31.96 percent, and the previous direct owners of MTB have 37.69 percent ownership.