Raiffeisen Bank International AG (RBI) has signed an agreement on the acquisition of 100 percent of the shares of Equa bank from AnaCap Financial Partners (AnaCap), a specialist financial services private equity investor.
Equa bank focuses on consumer lending and serves 480,000 customers. The proposed acquisition is part of RBI’s strategy to expand its presence in selected focus markets.
The business models of Equa bank and Raiffeisenbank are very complementary, which is why the transaction would ultimately lead to strategic synergies as well as enhanced digital capabilities.
“The acquisition would increase the synergy effect, especially in the area of cost savings and revenue growth,” said Equa bank spokeswoman Petra Kopecká.
As of year-end 2020, Equa bank had total assets of more than EUR 2.8 billion, while Raiffeisenbank a.s. reported total assets of EUR 15.7 billion.
“Although Equa bank is significantly smaller than Raiffeisenbank in terms of asset volume, the bank’s high level of customer satisfaction and impressive loan growth make it an attractive acquisition for us,” states Raiffeisenbank website.
Closing is expected around the end of the second quarter of this year. On the basis that deal completion is successful, there is a plan to merge Equa bank with Raiffeisenbank and thereby allowing the realization of the identified synergies.
Raiffeisenbank is one of the five largest domestic banks, providing banking services in the Czech Republic since 1993. Its major shareholder is Austrian financial institution Raiffeisen Bank International.
Last year, the net profit of Raiffeisenbank decreased by 49 percent year over year to 2.14 billion crowns due to the spread of coronavirus.
In 2020, Equa Bank’s total net profit fell 55% year over year to 182 million CZK. Equa Bank entered the Czech market in 2011 after Equa Group Limited took over Banco Popolare ČR.