OTP Group to enter the Baltic markets by acquiring Luminor Bank, the third-largest provider of financial services in the region

OTP Group to enter the Baltic markets, expanding its presence to 14 countries and increasing its total assets by over 10%, while the share of its operations within the euro zone will reach 50%.

OTP Bank has signed an agreement with a consortium of private equity funds managed by Blackstone, and DNB Bank, to acquire Luminor, the third-largest banking group in the Baltic region – according to the press release.

Over recent years, Luminor has strengthened materially its business model, grown its customer franchise, and advanced the digitalisation of its operating model – consolidating its role as a universal, pan-Baltic bank serving Estonia, Latvia and Lithuania.

„OTP Bank will further support Luminor’s growth by building on its existing strengths, market position and customer relationships. As a strategic investor already serving over 17.5 million customers, OTP Group aims to establish a long-term presence in the Baltic region and, through Luminor, actively contribute to the financial health of its customers across its key markets.” – the bank said.

„The signing of the agreement marks an important milestone in OTP’s continued international development. Through the acquisition of Luminor, OTP Group further strengthens its position as a leading banking group in Central and Eastern Europe, while entering new growth markets in the Baltic region. As a result of the transaction, the OTP Group’s total assets will increase by approximately 13%, while the share of euro zone operations within the Group’s net loans will rise from the current 42% to 50%.” – the bank explained.

Wojciech Sass, Chief Executive Officer of Luminor, said:
„This transaction is an important step in our development. Both Luminor and OTP Bank share a clear commitment to customers, long-term value creation and financing the real economy of our home markets. As part of OTP Group, Luminor will have the backing of an experienced international banking group with a strong presence across Central and Eastern Europe.”

Péter Csányi, Chief Executive Officer of OTP Bank, added:
’As one of the leading banking groups in Central and Eastern Europe, OTP Group has demonstrated over the past decades its ability to create value in new markets. We invest capital, liquidity and technological expertise into acquired banks and apply a long-term ownership approach. Building on Luminor’s strong market position, our goal is to further strengthen the bank’s role in the Baltic states and contribute to the development of the region’s financial system, lending activity and financial innovation.’

Completion of the transaction is subject to obtaining the necessary regulatory approvals.