Hungary: Erste Group Expands
The Austria major bank purchases the private banking segment of BNP Paribas in Hungary.
Despite the challenging market environment, Erste Group expands in Hungary. After the acquisition of BNP Paribas´ private banking segment, Erste Group´s market share reaches 12%. Before, Erste Group had a market share of 9%. In Hungary, BNP Paribas managed assets of € 216m and served 400 clients. The deal has to be approved by the Hungarian financial market authority.
In 2011, Erste Group recorded a loss of € 567m in Hungary. In the first six months of 2012, losses reached € 73m. In the past, Erste Group reaffirmed not to withdraw from Hungary.
At the moment, Erste Group´s private banking segment in Hungary serves 1,800 customers. In total, assets under management reach € 13.5bn. Erste Group operates its private banking business in Austria, Croatia, Slovakia, Romania and the Czech Republic.