Germany’s Commerzbank sells Hungarian subsidiary to Austria’s Erste

Frankfurt: Commerzbank announced on Friday it is to sell its Hungarian subsidiary to Austria’s Erste Group as part of the German bank’s drive to streamline its international operations. The relevant contract had been signed by both parties, Commerzbank said from its Frankfurt headquarters. The parties have agreed to keep the financial aspects of the deal confidential. “We are focusing our network abroad more consistently on the needs of our core customers and on international business with a link to Germany,” chief executive Manfred Knof said. The deal is to go through in the second half of next year following approval from the regulatory authorities. Commerzbank, in which the German state holds a stake of more than 15 per cent, has slimmed down its presence in Eastern Europe, but still has operations in Poland, the Czech Republic and Russia. (dpa)
By 2024, the bank aims to withdraw from 15 locations, including branches in Barcelona, Bratislava, Brussels and Luxembourg in Europe, and Hong Kong in Asia. Its presence in Dubai is also to be reduced.
Commerzbank closed four branches abroad during the first nine months of the year.