eBanka to Be Renamed to Raiffeisenbank in Two Years Time

31. Juli 2006, 00:00

Lubor Zalman, Head of the Czech division of Raiffeisenbank, announced that the newly acquired eBanka will apparenly...

Lubor Zalman, Head of the Czech division of Raiffeisenbank, announced that the newly acquired eBanka will apparenly have a new name, Raiffeisenbank, in one or two years and services for clients will remain the same during this period.

Several millions of euro will be needed to complete the merger of the two banks.

"We think that it is not worthwhile to have two brands on a small market as the one of the Czech Republic is," Zalman said. He thinks that the brand Raiffeisenbank must be put forward as a working hypothesis.

The combined number of outlets of the two banks is calculated at 86 with Raiffeisenbank providing 50 outlets and eBanka - 36.

In Zalmans words there will be no closures of outlets and that their number would go up.

Raiffeisen International Bank Holding, which owns Raiffeisenbank in the Czech Republic, signed a contract to purchase eBanka last Monday.

It acquired 100 per cent from Ceska pojistovna from the group PPF for EUR 130 million (about CZK 3.7 billion). The transaction is yet to be okayed by the central bank CNB and other authorities in the Czech Republic and in Austria.

The merger will give rise to the 6th largest bank on the market.

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