ZAGREB (Croatia), February 9 (SeeNews) – Societe Generale Group said on Thursday the decline in its earnings for 2016 is partly due to the sale of its Croatian unit to Hungarian financial services group OTP.
The disposal of the Croatian subsidiary reduced by 235 million euro ($267.1 million) the bank's net income, Societe Generale Group said in a financial statement.
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Societe Generale's consolidated net income fell to 390 million euro in the fourth quarter from 656 million euro a year earlier. In 2016, it dropped to 3.87 billion euro from 4.0 billion euro a year earlier.
In December, OTP's Croatian unit, OTP Banka Hrvatska, signed an agreement to buy a 100% stake in Splitska banka from Societe Generale group for an undisclosed price. As a result of this acquisition, the market share of OTP Group on the Croatian market will increase to approximately 10%, OTP said at the time.
Societe Generale Splitska banka, a bank with universal range of services, is the fifth biggest player on the Croatian banking market. OTP Bank has been present in Croatia since 2005 and has had continuously profitable operations.
($=0.9358 euro)