OTP Bank to acquire Luminor

OTP Bank is poised to acquire Luminor, a significant financial institution operating across Estonia, Latvia, and Lithuania, marking a strategic expansion for the Hungarian banking group.

Luminor has recently strengthened its operational model, grown its business volumes, and continued to digitize its operations, solidifying its role as a universal bank in the Baltic states. OTP Bank intends to build upon these existing strengths, market position, and customer relationships to drive Luminor's future growth. As a strategic investor, OTP Group, which already serves over 17.5 million customers, aims to establish a stronger foothold in the Baltic region and contribute to the financial well-being of customers in these markets through Luminor.

This acquisition represents a key milestone in OTP's international expansion. By acquiring Luminor, OTP Group will further solidify its status as a leading banking group in Central and Eastern Europe and enter new markets within the Baltic region. Following the transaction, OTP Group's total assets are expected to increase by approximately 13%. Crucially, the proportion of its Eurozone operations within the group's net loan portfolio will rise from the current 42% to 50%, enhancing its presence in the single currency area.

Péter Csányi, CEO of OTP Bank, described the acquisition as a strategic move into a developed, stable region with significant growth potential. He highlighted OTP Group's proven ability to create value in new markets over decades and its long-term ownership approach, involving investments in capital, liquidity, and technological expertise. Wojciech Sass, CEO of Luminor, acknowledged the deal as a significant step, emphasizing the shared commitment to customers and economic growth between Luminor and OTP. He expressed confidence that becoming part of OTP Group will provide Luminor with the backing of an experienced international banking group.