(Finance) – Intesa Sanpaolo strengthens its presence in Central-Eastern Europe through the acquisition of the Romanian First Bank SA (Romania) from the US private investment fund JC Flowers & Co.
Intesa Sanpaolo and JCF Tiger Holdings SARL, the controlling shareholder of First Bank SA, have signed an agreement for the acquisition of 99.98% of the shares of the Romanian bank. The transaction is expected to close by the first quarter of 2024, pending approval from relevant regulatory authorities.
First Bank, with total assets of around €1.5 billion, is a commercial bank with 40 branches in Romania – where GDP growth is expected to exceed 3% in the next two years – and focuses on serving SMEs and retail customers. In recent years, First Bank has prioritized investments in digital technology, developing one of the most popular mobile banking applications on the market.
Intesa Sanpaolo is present in the country through Intesa Sanpaolo Bank Romania – part of the International Banks Division of Intesa Sanpaolo – which serves approximately 60,000 customers through 34 branches and has total assets of 1.5 billion euros.
Marco Elio Rottigni, Chief International Subsidiary Banks Divisioncommented: “We are pleased to welcome the employees and customers of First Bank to the Intesa Sanpaolo Group. This operation, which doubles our presence in a country in
strong growth and with strong ties to Italy such as Romania, fits well into the Group’s strategy of seizing value-oriented opportunities while maintaining the focus on organic, profitability-oriented growth. The expansion into Romania strengthens our position in Central Eastern Europe and confirms the support to the internationalization of Italian companies; we are really happy to start working with our new colleagues.”
Intesa Sanpaolo’s Foreign Banking Division (ISBD) is a key player in the financial landscape of the Central and Eastern Europe (CEE) region. The Division operates on three continents, with 11 commercial banks in CEE and Egypt, as well as one company
wealth management in China. This vast network serves over 7 million customers, across nearly 900 branches and a dedicated workforce of approximately 21,000 employees.
In the first half of 2023, ISBD contributed significantly to Intesa Sanpaolo’s profitability, representing 17% of Group profits, with the Division’s net profit more than tripling to €679 million.