‘Eurobank Direktna’ born from absorption of the Serb lender

Eurobank, one of Greece’s four largest lenders, confirmed on Thursday it had agreed to merge its Serbian unit Eurobank Beograd with Direktna Banka.

The combined bank, Eurobank Direktna, will have total assets in excess of 2 billion euros, total equity above €300 million and net income of more than €35 million euros, Eurobank said.

Its market share will exceed 6.5% in total loans, making it the seventh largest in Serbia.

Eurobank will control about 70% of the combined bank, while Direktna’s shareholders will own the remaining 30%.

“Both parties have committed to a growth-oriented business plan… that will allow the combined bank to finance the Serbian economy and grow profitably in the next few years,” Eurobank said. The merger will be capital neutral for Eurobank. [Reuters]