OTP to buy AXA's Hungarian operations

OTP Bank has announced it is to buy AXA Bank's Hungarian operations; the purchase includes household and enterprise loan book, and deposit portfolio, which will result in OTP's mortgage portfolio increasing by around 25%. Completion is expected to take place by the end of 2016. This is part of AXA's ongoing strategy to leave the banking business in most of Europe while focusing on its Belgian unit.

PARIS--French insurance company AXA SA CS said Wednesday it agreed to sell its Hungarian banking unit to OTP Bank (BISI.RS) as part of a strategy to exit the banking business in most of Europe.

The sale will result in an 80 million euro ($87 million) loss that it made a provision for in its 2015 accounts, AXA said in a statement. The company will report 2015 earnings later this month.