Hungary's OTP Bank acquires Luminor, enters Baltic market
Hungarian bank OTP has signed an agreement to acquire Luminor Bank, marking its entry into the Baltic region and expanding its operations to 14 countries.
Hungary's Országos Takarék Pénztár (OTP Bank) is set to acquire Luminor Bank, becoming a new player in the Baltic financial market. The deal involves an agreement with a consortium of private equity funds managed by US investment firm Blackstone and DNB Bank. Upon completion, OTP Bank will expand its presence to 14 countries, increase total assets by more than 10%, and its eurozone share will reach 50%.
OTP Bank has committed to supporting Luminor's growth based on its existing strengths, market position, and customer relationships. Chairman of the Board Péter Csányi stated that the goal is to further strengthen Luminor's role in the Baltic states and promote the region's financial system, lending activity, and financial innovation. Luminor Bank CEO Wojciech Sass highlighted that both banks share a clear commitment to working for clients, creating long-term value, and financing local economic growth.
Luminor is the third-largest financial services provider in the Baltics, serving individuals, families, and businesses. In 2025, it posted a profit of €158 million and achieved an 8.6% return on equity. Its Common Equity Tier 1 (CET1) ratio was 20.2%, and the total capital adequacy ratio stood at 24.6%. In Latvia, Luminor's branch is the fourth-largest bank by assets. The bank was previously controlled by Blackstone.
The transaction value has not been disclosed and requires regulatory approval. OTP had previously expressed interest in acquiring Luminor. In 2024, the Bank of Latvia explained that the acquisition would be assessed by the Estonian supervisor together with the European Central Bank (ECB), with the Bank of Latvia participating in the ECB Supervisory Board. At that time, Lithuanian Parliament Speaker Viktorija Čmilytė-Nielsen urged caution regarding Hungarian investments, noting Hungary's differing stance from the EU consensus on Ukraine and Russia.
