Published: January 7, 2014
Speculation arose after Austrian peer Raiffeisen confirmed sale negotiations for its own local business.
Erste Bank has denied that it will sell its Hungarian subsidiary, as suggested in the Hungarian press.
“The story in the Hungarian press is mere speculation as far as it concerns Erste,” a spokesperson for the Austrian bank tells EMEA Finance. “Our commitment to the Hungarian market and to our customers there is unchanged. We are convinced that the management will successfully implement the renewed business strategy, which aims to ensure the return of the bank to profitable operation within a foreseeable future.”
The development comes amid reports in Magyar Hirlap, a pro-government Hungarian daily, that Erste’s Austrian compatriot Raiffeisen Bank is in talks to sell its Hungarian business to Szechenyi Bank, a 49% government-owned institution. The bank has not confirmed this but told the Austrian Press Agency that “there are interested parties in Hungary whose offers we are reviewing”.
Although unconfirmed, a withdrawal of foreign players from Hungary’s banking sector chimes with the government’s stance. In March 2012 Prime Minister Viktor Orban described foreign dominance of the banking sector as “unhealthy” and central bank head Gyorgy Matolcsy last month said he expected four foreign banks to exit the Hungarian market in the next 18 months.