The sole offer for Konzumbank, made by the Hungarian Foreign Trade Bank Rt (MKB), was unanimously accepted by the board of directors of the MFB and is awaiting approval by the State Privatization and Holding Rt.
Konzumbank specialises in financing small- and medium-sized enterprises (SMEs), and has a market share of around one per cent. At the end of August 2003, it had total assets of 102.6 billion Forint (Ft) (Ђ400.4 million) and net capital of approximately Ft 9 billion.
Konzumbank is the third state bank scheduled for sale this year. The main reason for the weak interest in the privatisation of Konzumbank is unfavourable timing. It was too close to Postabank’s tender. Moreover, while Konzumbank focuses on corporate business, large market players see outstanding growth potential mainly in the retail segment.
