Hungary's OTP Bank has agreed to acquire Baltic-based financial services provider Luminor from a consortium of private equity funds managed by Blackstone and DNB Bank.

Luminor is the third-largest banking group in the Baltic region and operates across Estonia, Latvia and Lithuania.

The transaction will expand OTP Group’s presence to 14 countries and increase its total assets by approximately 13 per cent.

It will also raise the proportion of the group’s net loans attributable to eurozone operations from 42 per cent to 50 per cent.

OTP said it planned to build on Luminor’s existing market position, customer relationships and operational strengths, while providing capital, liquidity and technological expertise to support its future growth.

The acquisition forms part of OTP Group’s continued international expansion and will strengthen its position across Central and Eastern Europe.

The group currently serves more than 17.5 million customers and said it intended to establish a long-term presence in the Baltic region.

But OTP Bank chief executive officer, Péter Csányi, argued that the transaction represented more than a geographical expansion for the group.

“The acquisition of Luminor is not merely a geographical expansion; it
represents a strategic entry into a developed, stable region with significant growth potential.

“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.”

Csányi added that OTP would apply a long-term ownership approach to Luminor, alongside providing financial and technological support.

“We invest capital, liquidity and technological expertise into acquired banks and apply a long-term ownership approach,” he continued.

“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.”

Luminor serves retail, corporate and institutional customers across the three Baltic states and has developed as a single regional banking platform.

Luminor chief executive officer, Wojciech Sass, noted that joining OTP would give the bank the backing of an experienced international group with an established presence across Central and Eastern Europe.

“This transaction is an important step in our development,” he said.

“Both Luminor and OTP share a clear commitment to customers, long-term value creation and financing the real economy of our home markets.”

Sass also thanked Luminor’s employees for their contribution to the bank’s development and their continued support for customers and the Baltic economies.

“As part of OTP, Luminor will have the backing of an experienced international banking group with a strong presence across Central and Eastern Europe,” he added.

“I want to thank Luminor employees for their contribution to Luminor’s development and their continued dedication to supporting our customers and the Baltic economies.”

Completion of the acquisition remains subject to the necessary regulatory approvals.

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