OTP Bank to acquire Luminor Holding in EUR 15.9 billion-asset deal

OTP Bank agreed to buy Luminor Holding from a Blackstone-led consortium and DNB Bank, adding a Baltic lender with EUR 15.9 billion in total assets to its Central and Eastern European network.

"This transaction is an important step in our development," Wojciech Sass, chief executive officer of Luminor, said. "As part of OTP Group, Luminor will have the backing of an experienced international banking group with a strong presence across Central and Eastern Europe."

Luminor, a top-three universal bank across Estonia, Latvia and Lithuania, reported profit after tax of EUR 158 million in 2025. The deal covers 100 percent of Luminor Holding shares, with completion subject to regulatory approvals. OTP Bank shares rose 0.61 percent to 44,750 forint in Budapest trading Monday, bringing year-to-date gains to 27 percent.

The acquisition extends OTP's footprint into the Baltics, adding a digital-first lender with a modern IT platform to a group that already operates in 12 countries. The transaction gives Blackstone and DNB an exit from the bank they helped create in 2017 through the merger of DNB's and Nordea's Baltic operations.

OTP Chief Executive Officer Peter Csanyi said the group aims to further strengthen Luminor's role in the Baltic states and contribute to the region's financial system, lending activity and financial innovation. OTP, Hungary's largest lender, has built a track record of integrating acquisitions across Central and Eastern Europe, applying what Csanyi described as a long-term ownership approach that includes investing capital, liquidity and technological expertise.

The Baltic banking market is dominated by three players — Swedbank, SEB and Luminor — giving OTP immediate access to a concentrated market with strong economic growth. The region's banking sectors have benefited from rising interest rates and strong loan demand, though competition for deposits remains intense. Luminor's digital-first operating model and scalable IT platform position it to capture further efficiency gains under OTP's ownership.

OTP's acquisition strategy has focused on markets where it can achieve scale and cross-sell products. The bank has previously bought units in Bulgaria, Croatia, Serbia and Slovenia. With the Luminor deal, OTP gains a presence in three European Union member states that use the euro, reducing its exposure to Hungarian forint volatility and aligning with the European Central Bank's regulatory framework.

The deal is expected to close after receiving approvals from competition and financial regulators in the Baltic states and potentially the European Central Bank. Financial terms were not disclosed. Luminor's EUR 158 million profit in 2025 implies a potential valuation multiple that analysts will scrutinize once terms emerge, with comparable Baltic bank acquisitions trading at 1.0 to 1.5 times book value.

This article is for informational purposes only and does not constitute investment advice.