This transaction strengthens Postbank’s position in Bulgarian retail banking
An agreement has been reached between Eurobank and BNP Paribas to acquire the latter’s Bulgarian branch.
In particular, according to a related announcement, Eurobank Ergasias Services and Holdings (“Eurobank”) announced that it has reached an agreement with BNP Paribas Personal Finance for the acquisition by its subsidiary in Bulgaria, Eurobank Bulgaria AD (“Postbank”) of BNP Paribas Personal Finance Bulgaria.
In particular, Postbank signed a letter granting BNP Paribas Personal Finance the right to sell (put option) BNP Paribas Personal Finance Bulgaria in accordance with the agreed terms.
Empowerment
According to the same announcement, since 2007, BNP Paribas Personal Finance has built a strong presence in the Bulgarian consumer credit market. It operates through a network of 44 branches and at the end of September 2022 had total assets of 450 million euros and deposits close to 100 million euros, with strong profitability.
This transaction strengthens Postbank’s position in Bulgarian retail banking while creating significant cross-selling opportunities due to BNP Paribas Personal Finance’s customer base in Bulgaria of over 270,000. The planned transaction is subject to consultation with the representative bodies of the BNP. Paribas Staff Personal Finance is expected to be completed in the first half of 2023 subject to obtaining the required regulatory approvals.
Satisfy
Mr. Stavros Ioannou, Deputy General Manager, Head of Group Operations (COO) and International Activities of Eurobank, said: “We are very pleased that we have reached an agreement with BNP Paribas Personal Finance to acquire BNP Paribas Personal Finance Bulgaria. The acquisition is fully in line with our strategy to empower Postbank with assets that Add value now and in the future BNP Paribas Personal Finance has for many years maintained a significant presence in the field of consumer credit in Bulgaria, providing quality services to its clients. This acquisition reinforces Postbank’s position as the number one bank for private clients providing services at the highest level. Confident that after the completion of the transaction, we will further enhance the customer experience. Our customers and we will strengthen Postbank’s position in the Bulgarian market with our experience and existing knowledge together with the excellent staff of BNP Paribas Personal Finance Bulgaria. This agreement is further proof that Eurobank is still committed to its strategy of growth and value creation in the region as a whole.”
Ms.Nasrin Gonen, Managing Director Central Europe, BNP Paribas Personal Finance said: “We are very pleased to announce this agreement with a major local player such as Postbank. BNP Paribas Personal Finance Bulgaria is among the leading banks in the domestic consumer credit market with consistently high performance. This agreement represents an important opportunity for our teams and their development, as well as for our partners and other partners. With this acquisition, Postbank will benefit from experience and knowledge in managing data and digital operations with international best practices for the consumer credit market that we implement throughout Europe.”
