Budapest, 3 January 2022
The leasing companies of Hungarian Bankholding will continue to operate under the Euroleasing brand from 1 January
As a significant step in the merger processes of Hungarian Bankholding, MKB-Euroleasing, Budapest Leasing, Takarék Leasing and the Car Finance Division of Budapest Bank will continue to operate under the Euroleasing company name from the first day of 2022. The significance of this step is indicated by the fact that the company has a nationwide network, 110,000 clients and a significant market share of over 20 percent in terms of newly leased aggregate portfolio. Through the integration, the vehicle, equipment and agricultural machinery financing solutions has become available in the branches of all three member banks.
From 1 January, 2022, MKB-Euroleasing, Budapest Leasing, Takarék Leasing and the Car Finance Division of Budapest Bank will continue to operate under the Euroleasing brand. The leasing companies are already dominant players in the Hungarian market, and under the Euroleasing brand, they have a market share of significantly more than 20% in terms of newly leased aggregate portfolio. The new brand has an even higher market share of over 30 percent in the automotive and agricultural machinery leasing segments.
Through the integration, a nationwide network has been created which makes the physical service of both retail and corporate customers more efficient, and automotive, equipment and agricultural machinery financing opportunities have become available in the branches of all three member banks, Budapest Bank, MKB Bank and Takarékbank. Euroleasing covers all segments of the leasing market, even those with a smaller volume which require more expertise like ship financing.
In addition to the own products of Euroleasing, the clients will also be able to request the credit and leasing products of the popular Széchenyi Card Program and EXIM. Importantly, Euroleasing is placing greater emphasis on digital developments than ever before, with a strong goal of providing state-of-the-art online solutions to the market.
Approximately 440 employees of the leasing companies will continue to operate in the new, renamed company, and they will manage the expiring portfolios in the remaining leasing entities. At the same time, the conclusion of new transactions and the contracting of prospective clients are largely carried out in the unified Euroleasing system. The leasing companies of the member banks of Hungarian Bankholding will continue to manage the approximately 110,000 client’s existing financing agreements.
„Until now, there has been no example of such a large-scale merger in the leasing market in Hungary. All of this is realized in a market environment where landslide-like transformations are taking place in terms of service, manufacturing and sales channels. The most spectacular element of this process is that traditional offline merchant sales are declining as digitalization advances. However, we see this not as a problem but as an opportunity, and we are jumping into this exciting new chapter by focusing on digital developments,” – said Judit Vály, CEO of Euroleasing.
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Hungarian Bankholding Ltd.
Hungarian Bankholding Ltd. is a domestically owned financial holding company, which aims to implement the merger of Budapest Bank Zrt., MKB Bank Nyrt. and Takarék Group. The company commenced its effective operation on 15 December 2020, after MNB (acting as the central bank of Hungary) approved the merger of three credit institutions, and the shares of the key owners were transferred to the joint holding company. By transferring the in-kind contributions, the second largest banking group in Hungary has been established.
In March 2021, the Board of Directors and the Supervisory Board of the Hungarian Bankholding approved their five-year strategy for the merger of the member banks, based on which the fusion of the three credit institutions is planned to be concluded in 2023. The aim of the emerging large bank is to be the most modern bank in Hungary, which will introduce flexible, internationally leading digital solutions. The new large bank will serve the full market spectrum and all customer segments in the future, with a significant emphasis on the provision of new, modern range of products and services to retail, micro, small and medium-sized enterprise and agricultural customers.
Takarék Group is one of Hungary’s biggest bank groups and is a significant player of the Hungarian financial system. The Group’s members are MTB Zrt. as an integration business management organization, Takarékbank Zrt. as universal commercial bank, Takarék Jelzálogbank Nyrt. as specialized credit institution, and other companies and subsidiaries dealing with factoring, leasing, fund management, real estate management, IT services and other supplemental financial services. Takarék Group’s proper and prudent operation is controlled and supervised by the Central Organization of Integrated Credit Institutions, having separate licenses. Takarék Group’s universal commercial bank with a countrywide coverage is Takarékbank Zrt., which comprises of earlier savings institutions, and is one of the largest Hungarian financial institute operating the country’s biggest branch network.
Hungarian Bankholding Ltd.
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