Postbank and Alpha Bank wish to announce that on 17 July 2015 they entered into a Memorandum of Understanding for the acquisition of Alpha Bank’s Branch in Bulgaria (‘Branch’) (the ‘Proposed Transaction’).

The Proposed Transaction is fully aligned with Alpha Bank’s restructuring plan, as approved by the European Commission in 2014, and its commitment to focus its operations only on its core markets. It also serves ideally Postbank’s strategy to expand its operations and further enhance its presence in the Bulgarian market as one of the most stable and sustainable financial institutions with assets of more than €3.2bn.

The Proposed Transaction covers the entire banking operations of the Branch, which consists of deposits worth €254m, gross loans worth €410m. As at completion of the Proposed Transaction, Postbank’s network will consist of more than 200 locations though the whole country and the clients will be served by close to 3,000 qualified professionals.

With the acquisition of the Branch, Postbank will strengthen its market position in the Bulgarian banking sector and expand its customer base in both the retail and corporate business banking segments. Following the completion of the Proposed Transaction, Postbank will become the fourth largest bank in Bulgaria ranked by deposits and loans. After the successful completion of the deal, Postbank will affirm its position as a market leader.

The Proposed Transaction is expected to contribute positively to Postbank’s pre-provision income from the second year of combined operations and significantly improve its coverage ratios, while it maintains its strong capital ratios above 20% and substantial liquidity buffers well above the regulatory requirements.

Until the completion of the Proposed Transaction, the customers of Alpha Bank will be served by the Branch for the whole spectrum of the services currently provided to them and shortly after completion they will be served by Postbank’s retail network.

Completion of the Proposed Transaction is expected by end of 2015 following the execution of definitive transaction documentation and the obtaining of all approvals required to complete the Proposed Transaction in Bulgaria, Greece and from the relevant bodies in the European Commission (SSM, ECB, etc.)