Hungary’s OTP Bank is set to enter the Baltic banking market through the acquisition of Luminor Bank, according to a statement published on Luminor’s official website.
The announcement said OTP Bank has signed an agreement to acquire Luminor from a consortium of private equity funds managed by US investment firm Blackstone and DNB Bank.
The acquisition will expand OTP Bank’s presence to 14 countries, increase its total assets by more than 10%, and raise the share of its operations within the euro area to 50%, the statement said.
OTP Bank said it intends to continue supporting Luminor’s growth by building on the bank’s existing strengths, market position and customer relationships. The OTP Group also plans to establish a long-term presence in the Baltic region and, through Luminor, contribute to the financial well-being of customers across the three Baltic states.
According to the bank,
the acquisition represents not only a geographical expansion but also “a strategic entry into a developed and stable region
with significant growth potential.”
OTP Bank Chairman and CEO Péter Csányi said the group’s objective is to further strengthen Luminor’s position in the Baltic states while supporting the development of the region’s financial system, lending activity and financial innovation.
Luminor CEO Wojciech Sass said both banks share a strong commitment to serving customers, creating long-term value and financing local economic growth. He added that becoming part of OTP Group would provide Luminor with the backing of an experienced international banking group with a strong presence across Central and Eastern Europe.
The acquisition remains subject to approval by financial regulators before it can be completed.
According to Latvia’s LETA news agency archive,
OTP Bank had already expressed interest in acquiring Luminor several years ago.
At the time, the Hungarian banking group operated in Hungary as well as Albania, Bulgaria, Croatia, Moldova, Montenegro, Serbia, Slovenia, Ukraine and Uzbekistan, among other markets.
In 2024, the Bank of Latvia said the proposed acquisition would be assessed by the Estonian financial supervisor together with the European Central Bank (ECB). Because Luminor is incorporated in Estonia, the approval process would include a comprehensive assessment of the prospective shareholder’s impact on the entire banking group, including its branches in Latvia and Lithuania.
The Bank of Latvia noted that decisions on significant acquisitions are approved by the ECB’s Supervisory Board, where Latvia’s central bank is represented and entitled to provide its opinion. It also participates in the ECB’s joint supervisory team responsible for overseeing Luminor’s operations and development.
At the time, the Bank of Latvia explained that the ECB directly supervised Latvia’s three largest banks by assets—Swedbank, SEB banka and Citadele—while
in Estonia it supervised four major institutions: Swedbank, SEB Pank, Luminor Bank and LHV Pank.
In May 2024, then Speaker of the Lithuanian Parliament Viktorija Čmilytė-Nielsen urged caution regarding the proposed acquisition, pointing to Hungary’s position on Ukraine and Russia, which she said differed significantly from the broader consensus within the European Union.
According to Luminor, the bank is the third-largest financial services provider in the Baltic states, serving private individuals, families and businesses. In 2025, Luminor reported a net profit of 158 million euros and a return on equity of 8.6%. At the end of the year, its Common Equity Tier 1 (CET1) ratio stood at 20.2%, while its total capital adequacy ratio reached 24.6%.
Luminor operates in Latvia through a local branch, which is the country’s fourth-largest bank by assets. Prior to the announced transaction, the bank was controlled by investment funds managed by Blackstone.
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