Spanish owner to sell Romanian subsidiary of Turkish Garanti Bank

Spanish banking group BBVA has put up for sale Garanti Bank Romania, the local subsidiary of Turkish group Garanti, which it controls, according to Ziarul Financiar daily.

The sale was prepared by inviting selected investors, in a process coordinated by the investment division of BBVA.

Four banks are reportedly interested in potentially taking over Garanti Bank Romania, ZF daily announced.

Profit.ro quoting unofficial sources mentions Hungary’s OTP Bank among the prospective bidders.

However, OTP failed in 2018 to get the approval of Romania’s National Bank (BNR) for taking over Banca Romaneasca - a smaller bank compared to Garanti.

By taking over Garanti Bank, OTP Bank Romania would climb up one place and become the 8th largest lender in the country with a 5% market share.

If an agreement is reached, the transaction will exceed EUR 350 million - EUR 400 million for the bank's capital only [not including bank’s loans from the parent group], ZF said.

Romania’s largest lender, Banca Transilvania, was reportedly interested in taking over Garanti Bank Romania in 2017.

At the end of 2018, Garanti Bank Romania was the tenth largest bank in the country with a market share of 2.27% and assets of RON 10.25 bln (EUR 2.27 bln).

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