Société Générale Sells Its Business in Bulgaria and Albania to DSK Bank

The deal for the purchase of Société Générale Expressbank by DSK Bank was officially confirmed by the owners of the two institutions - the French Société Générale and the Hungarian OTP bank.

The price is still not announced, and the transfer is expected to be finalized by the end of 2018. Only banks in Bulgaria and Albania are entering the deal so far.

Capital reported that according to unofficial information in some of the countries - Macedonia, Montenegro, Serbia, and Moldova, the potential sales have faced regulatory or political obstacles.

The expectations of this stage are that the two banks will merge, as their mechanical collection will make a bank with a balance figure of BGN 19 billion, which is slightly higher than that of the leader UniCredit Bulbank.

At this stage, it is unclear whether the Hungarian group will be able to take the lead in the country, as each merge leads to some outflow of customers. The profit of DSK, which for the past year was the leader of the "Capital rating for the best banks in Bulgaria", reported BGN 117 million and Société Générale Expressbank - BGN 47 million.

DSK is expected to expand the non-banking services as it is traditionally strong with the leading positions in the retail market, thanks to its inheritance as a State Savings Bank. And now with Société Générale Expressbank' it will strengthen its corporate banking, too.

Petya Petrova

Petya Petrova is a journalist, believer, and traveler.

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