Austrian savings bank and custodian Erste Bank has completed the acquisition of 100% of Bank Prestige in Ukraine. The purchase cost US$ 104 million.
“Following the completion of the transaction and the legal transfer of full ownership, Erste Bank will now be able to leverage its group network to support and develop Bank Prestige’s position within the Ukrainian market,” says a spokersman for Erste Bank in Vienna.
By 2010 the market share of Bank Prestige is expected to reach 4 – 5% and the branch network is expected to expand to around 400 branches throughout the country.
In order to support these plans Erste Bank is planning to increase the bank’s capital by up to US4 300 million down to 2010.
Bank Prestige was established in December 2005 and registered as a public corporation in January 2006. It currently has around 300 employees and operates 15 branches. As of 31 October 2006 total assets amounted to UAH 1,009.2 million (US$ 199.8 million).
The bank has a full service licence as a universal bank and plans to change its name to Erste Bank during the course of 2007.