Postbank (Eurobank Bulgaria AD), which is part of the Eurobank International Group, successfully finalized the operational merger with Piraeus Bank Bulgaria AD (Piraeus Bank) on November 17, 2019. This is the final stage of the deal, which is key to the Eurobank Group, with major shareholders Canadian and US funds, and is part of its strategy to expand its focus on the markets in which it is a leader.
On November 12, 2019, just 5 days earlier, the legal merger of the two banks was completed, and thus Piraeus bank was transformed through the means of absorption that leads to dissolution of the company without need of liquidation procedure. Postbank became the successor in title to all the assets including all contractual rights and obligations to Piraeus Bank’s clients.
After the absorption of Piraeus bank in Postbank , the two banks continue to move forward together as one institution that will operate under the Postbank trademark. They combine their international expertise and long-term strategic presence in Bulgaria to meet the highest requirements of their customers and partners, and their users will be able to take advantage of innovative products, a broad branch network, digital banking services and personal financial solutions.
From the date of the operational merger, changes to the terms of the existing contracts General Terms and Conditions, Tariffs and Interest Bulletins take effect for Piraeus Bank clients, the most important being the automatic change of their bank account number (IBAN), changes in Internet banking and the reissuance of the Piraeus Bank debit and credit cards by Postbank. In a large-scale information campaign under the motto "Together Forward", Postbank informed Piraeus Bank users in advance about the planned changes, including by creating specifically for the merger EVA Postbank, the first mobile banking application in Bulgaria with a "live chat" feature.
Postbank, as a result of its merger with Piraeus Bank, acquires a market share on the Bulgarian market of more than 10% in terms of assets, loans and deposits, consolidating its position as a bank systemic for the market. It is expected to take third place in terms of loan portfolio with a volume of BGN 7.5 billion and in terms of deposits, with BGN 9.3 billion. The united bank will have an even wider branch network throughout the country and will continue to offer innovative products, high quality of service and flexible financial solutions for individual and business users. Its development strategy is still based on organic growth, efficiency and digitalization. The bank will continue to set the trends on the Bulgarian market and strive to be the preferred choice of clients for the realization of their plans and projects.
"The acquisition of Piraeus Bank is a new milestone in the successful history of Postbank, which has been among the leaders on the Bulgarian market for 28 years. We unite our strengths: international expertise, experience, teams of professionals, and move forward together. Our goal is to add more value for the consumers, society, our employees and shareholders. The strive of Postbank remains unchanged – to offer our customers the best customer experience (the so-called customer journey) based on their individual needs as well as innovative digital services. In recent years, we have seen steady growth above the market average and record financial results every year, modernizing our branch network and creating innovative financial solutions for consumers. I am convinced that the acquisition of Piraeus Bank will consolidate the positive trends in the development of Postbank and make it even more successful, strong and large systemic bank – one of the market leaders in Bulgaria", Petia Dimitrova, Postbank's CEO and Chairperson of the Management Board, said.
Postbank has a 28-year presence among the leaders in the banking market in Bulgaria. The bank has been a leading factor in the innovations, a trendsetter in the banking sector in the country in recent years and has been awarded many times for its innovations. Postbank is strategically positioned in retail and corporate banking in Bulgaria. It is one of the leaders in the market for credit and debit cards, home and consumer lending, savings products, as well as for corporate clients – from small companies to large international companies with presence in the country. The bank has one of the most well-developed branch networks and modern alternative banking channels.
In March 2016, Postbank acquired the operation of Alfa Bank Bulgaria, again for a record time, which marked the beginning of a wave of banking consolidations on the Bulgarian market.
The successful finalization of the merger will be celebrated by a special event – the simultaneous opening of three new-generation bank offices with modern design and digital self-service areas.