Eurobank Ergasias Services and Holdings S.A. (“Eurobank”) announces that it has reached an agreement with BNP Paribas Personal Finance for the acquisition by Eurobank Bulgaria AD (“Postbank”), its subsidiary in Bulgaria, of BNP Paribas Personal Finance Bulgaria.
Specifically, Postbank signed a put option letter for the benefit of BNP Paribas Personal Finance providing for the sale of BNP Paribas Personal Finance Bulgaria, based on the agreed terms.
Since 2007, BNP Paribas Personal Finance has developed a strong presence in the Bulgarian consumer finance market. BNP Paribas Personal Finance Bulgaria operates through a network of 44 branches. As of end of September 2022, the business had total assets of €450mn and deposits close to €100mn, and showed strong profitability.
This transaction strengthens Postbank’s position in the Bulgarian retail sector, while it also provides significant opportunities for cross-selling, given BNP Paribas Personal Finance Bulgaria’s clientele of more than 270k clients.
The planned transaction is subject to the consultation with the relevant employee representative bodies at BNP Paribas Personal Finance. It is expected to be completed during the first semester of 2023 subject to approvals by all competent regulatory authorities.
Mr. Stavros Ioannou, Eurobank’s Deputy CEO - Group COO & International Activities, said: “We are pleased to have reached an agreement with BNP Paribas Personal Finance, for the acquisition of BNP Paribas Personal Finance Bulgaria. This is a bolt on acquisition fully aligned with our strategy to further strengthen Postbank by adding valuable assets with significant upside. BNP Paribas Personal Finance has maintained a significant presence in the consumer finance sector in Bulgaria for many years, offering top-notch services to its clientele. The acquisition further strengthens Postbank’s position as a bank of choice for retail customers, providing service at the highest standards. We trust that after the completion of the deal, we will further improve customer experience and strengthen Postbank’s position in the Bulgarian market by joining our expertise with BNP Paribas Personal Finance Bulgaria’s excellent staff. This agreement is another proof that Eurobank delivers on its growth-focused, value-creating strategy in the region.”
Ms. Nesrin Gonin – CEO of Central Europe Region - BNP Paribas Personal Finance said: “We are delighted to announce this agreement with a strong and solid local player like Postbank. BNP Paribas Personal Finance Bulgaria is among the leading banks on the local market, focused on consumer financing with a long track record. This agreement gives a strong opportunity to our teams and their development, as well as for our partners and stakeholders. With this acquisition, Postbank will also benefit from expertise in data, digital processes with the best international consumer finance market practices we’ve been developing across Europe”.
About the Eurobank Group
Eurobank Group is a robust financial organization, active in six countries, with more than 11,000 employees. Eurobank is 100% subsidiary of Eurobank Ergasias Services and Holdings S.A., an entity listed on the Athens Stock Exchange, which ranks #1 among Greek banks in terms of market capitalization.
The Group offers a comprehensive range of financial products and services to its retail and corporate customers. Capitalizing on a total network of 615 branches mainly in Greece and in Central and South-Eastern Europe, as well as on specialized business centers, its private banking network and award-winning electronic service channels, the Group’s philosophy focuses on high quality services to its customers.
In Bulgaria, Eurobank Group is active for more than 20 years through its subsidiary, Postbank, which operates a wide network of 191 branches and 12 business centers across the country. Postbank offers a broad range of standard and innovative products and services, both for corporate and individual clients.
The Eurobank Group invests in sustainable development through ESG – Environment, Society, Governance actions for environmental sustainability, social responsibility and corporate governance. We consistently implement strong policies aiming to create social value and long-term sustainable performance.
About BNP Paribas Personal Finance
BNP Paribas Personal Finance is a major player in consumer finance in France and Europe, offering a wide range of consumer credit products. A wholly owned subsidiary of the BNP Paribas group, BNP Paribas Personal Finance employs close to 20,000 people and operates in some 30 countries. With brands such as Cetelem, Cofinoga, Findomestic and AlphaCredit, the company offers a full range of personal loans in stores, at car dealerships or directly to customers through its customer contact centres and online.
BNP Paribas Personal Finance has rounded out its offering with insurance and savings products for its customers in several countries including Germany, Bulgaria, France and Italy.
Over a number of years, BNP Paribas Personal Finance has developed an active partnership strategy with retail chains, car manufacturers and distributors, e-commerce websites and other financial institutions (banking and insurance) based on its experience in the credit market and on its ability to offer integrated services tailored to the business activities and commercial strategy of its partners.
To support its customers and partners, BNP Paribas Personal Finance is committed to promoting access to more responsible and sustainable consumption