The Hungarian Development Bank has acquired a 100 percent stake of Budapest Bank through its investment company, Corvinus Nemzetközi Befektetési Zrt. The government purchased the General Electric Capital Group’s Hungarian finance portfolio for USD 700 million and is now the owner of Budapest Bank, Budapest Alapkezelő Zrt., Budapest Autófinanszírozási Zrt., Budapest Lízing Zrt. and Budapest Flotta Zrt.
The Office of the Prime Minister announced Monday that Corvinus Nemzetközi Befektetési Zrt. acquired GE Capital Group’s Hungarian finance portfolio with HUF financing provided by the Hungarian Development Bank. The transaction was carried out at USD to HUF exchange rate of 279.64.
The prime minister’s office says Budapest Bank had after-tax earnings of HUF 5.1 billion in the first three months of 2015, and is confident earnings will exceed HUF 10 billion in the first six months of the year.
Hungary’s banking sector has been operating in a difficult business environment since the second Orbán government came to power in 2010. The Budapest Bank is the latest in a series of commercial banks acquired by the government of Hungary through the Hungarian Development Bank.
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