The Croatian banking market is anything but boring. Bankers are eyeing each other, potential targets are being scouted, and some (albeit unverified) information reaches us. The problems of the Italian bank UniCredit, which is selling various businesses across Europe to raise six billion euros in fresh capital to increase its capital adequacy ratio to a minimum of 12.5 percent by 2018, have also highlighted possible restructuring in Croatia. The idea of selling Zagrebačka banka has been discussed for some time, and reportedly top bankers from Milan are in talks with colleagues from Société Générale, which Lider has recently reported on.
Since in that case the Parisian group will have to sell Splitska banka, serious negotiations are reportedly already underway with OTP banka. However, OTP is not only interested in Splitska. According to unofficial information from Lider, the Hungarian bank has reportedly reached an agreement to purchase Podravska banka, but everything has stalled until it is clear what will happen with Splitska banka. OTP has informed us that they cannot comment on speculation, that they are seriously committed to their business and development in Croatia, and are monitoring all opportunities. If OTP were to acquire both Splitska and Podravska banka, it would create the fourth largest bank in Croatia with 44 billion kuna in assets.
This is not the only potential change in the domestic banking market. As large banks scout potential acquisitions and analyze the operations of many, information has also emerged about another intended purchase. According to unofficial information, Addiko banka could also strengthen its portfolio by acquiring Sberbank, which has been rumored to be for sale since February. Addiko banka, led by Mario Žižek, did not want to comment on the speculation and stated that they are always considering potential new opportunities and possibilities for business development and achieving their business strategy. However, Sberbank denies that it is for sale and states that, ‘although in principle they do not comment on market speculation and rumors, in this case they clearly say that no discussions or negotiations are taking place and there are no plans to sell Sberbank d.d. in Croatia.’ If this scenario were to occur, Addiko banka would become the fifth largest bank in Croatia with assets of 33.4 billion kuna.
If all the aforementioned speculations about potential acquisitions prove to be true, there would be a change in the ranking of the largest banks in Croatia. In this case, Zaba, PBZ, and Erste would remain among the top three banks, while OTP banka would rise to fourth place (from eighth); Addiko would move from sixth to fifth place. The loser in this case would be RBA, which would drop from fourth to sixth place.
