The General Meetings approved the creation of the new giant bank
On 9 December, the General Meetings of MKB Bank and Takarékbank approved the second step of the Hungarian Bankholding merger timetable, and the General Meeting of MKB Bank also decided to increase the capital of MKB. Accordingly, the two member banks of the banking group, MKB Bank and Takarékbank, will merge on 1 May 2023, and afterwards will continue to operate under the name MBH Bank Plc., under a single brand name and image. The resulting giant bank will be the second largest market player in Hungary, with a balance sheet total of nearly HUF 11 thousand billion, 2.3 million customers and a leading position in several areas. The necessary supervisory permission for the next step of the merger is currently pending.
On 9 December, Hungarian Bankholding reached another important milestone. The General Meetings of MKB Bank Plc., listed on the Budapest Stock Exchange, and Takarékbank Ltd. approved the proposals for the merger of the member banks. The General Assembly of MKB Bank Plc. also decided to increase the capital of MKB by HUF 23 billion, which will increase its share capital to HUF 322 billion as of 9 December, providing further stability for the owners and clients of the bank.
The second largest bank in Hungary will be created in May
According to the plans of Hungarian Bankholding, the merger of MKB Bank and Takarékbank will be concluded on 1 May 2023, when Takarékbank merges into MKB Bank. With this step, the unique and historical fusion in the Hungarian bankig sector will be concluded. Until the May fusion with Talakrékbank, Hungarian Bankholding will harmonise its internal operations; furthermore, work is underway to develop and merge the IT systems of the banks.
The merger of the members of the banking group will create an integrated universal bank, offering a comprehensive range of products to both retail and corporate clients. With a balance sheet total of nearly HUF 11,000 billion, it will be the second largest bank in Hungary, with around 2.3 million customers and a leading position in several segments.
„We are proud to say that the merger continues to progress successfully as planned. The results achieved since the merger of Budapest Bank and MKB Bank this Spring reveal that we have been able to leverage a number of synergies. After the merger with Takarékbank, the new bank, a stable, Hungarian-owned financial institution, will offer – in addition to its existing expertise – an even more unified product portfolio and a state-of-the-art branch network to Hungarian households and companies,” said Dr Zsolt Barna, Chairman and CEO of Hungarian Bankholding and MKB Bank Plc.
MBH Bank will embark on its journey
From May 2023, the merged MKB Bank and Takarékbank will continue to operate under the name MBH Bank Plc., with a unified brand name and image. From then, the larger flagship branch offices will be renewed first, followed by a gradual rebranding of branches. From May, the entire bank card portfolio and online surfaces will also be renewed under the new branding. In addition to an advertising campaign, the launch of the new brand will be supported by a strong social responsibility and sponsorship programme.
Hungarian Bankholding pays special attention to ensure that the steps of the merger and rebranding process are as smooth and seamless as possible for the clients of Takarékbank and MKB Bank.
The final step of the merger process will be taking place with the permission of the MNB, the related supervisory procedure
of which is currently pending.