Surprising new developments in the Serbian banking sector

Direktna Banka a.d. Kragujevac has acquired 100% of Findomestic Banka a.d. Beograd from Findomestic Banca SpA Italy, Miodrag Kostic has confirmed acquiring the Greek Alpha Bank in Serbia, while the two other Greek banks – Piraeus Bank and EFG Bank – are denying that they are planning to withdraw from Serbia.

The merger between Direktna Banka and Findomestic is expected to take place in the summer of 2017. The new bank will have a national retail network with over 45 branches, more than 350 employees and the assets worth close to EUR 200 million. The transaction is a part of Direktna Banka’s expansion plans, the aim of which is to position itself as the leading bank for small and medium enterprises and individuals in Serbia.

The proprietor of MK Group, Miodrag Kostic has confirmed that he has acquired Alpha Bank in Serbia. The acquisition will be completed once MK Group gets all the required approvals from relevant institutions. MK Group has already bought AIK Bank. The group comprises of 35 companies in Serbia and has over 8,000 employees.

Following the recent announcement by the former governor of National Bank of Serbia, Radovan Jelasic, who now works for the Hellenic Financial Stability Fund, that all Greek banks in Serbia would be sold, Piraeus Bank and EFG Bank have issued statements denying this.

EFG Bank says that, according to all relevant parameters, the bank is ranked among the top 10 banks in Serbiaa, and adds that it has no intention of leaving Serbia. The bank did however withdraw from Ukraine and Poland.

The same goes for Piraeus Bank which has also refuted claims about withdrawing from the Serbian market. The bank has recently signed a sponsorship agreement with the Serbian Basketball Federation as their official bank in the next two years, and the sponsor of the Radivoje Korac Basketball Cup.

(eKapija, Blic, 31.01.2017)

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