Equa bank will end operations on the Czech market following merger

Raiffeisenbank International (RBI) bought 100 percent of the shares of Equa bank from AnaCap Financial Partners. The transaction is subject to regulatory approval, and the price of the transaction was not disclosed.

If approved, Equa bank, which has been on the Czech market for 10 years, will cease operating as it will be fully merged into RBI’s Czech division, Raiffeisenbank. Equa bank currently serves almost 480,000 customers.

“The Czech Republic is one of RBI’s focus markets where the RBI Group is committed to drive growth. RBI supports Raiffeisenbank's management in related activities to both identify and achieve this growth potential,” he added.

The business models of Equa bank and Raiffeisenbank complement each other, according to the RBI press release. One area where Equa bank is strong is digital services, an area that Raiffeisenbank has been looking to improve in.

The merger would lead to significant strategic synergies and further development not only in the field of digital services for clients, according to RBI.

Equa bank is significantly smaller than Raiffeisenbank in terms of asset volume, but Equa bank’s high level of customer satisfaction and its impressive growth in lending make it an attractive acquisition, according to RBI.

At the end of 2021, Equa bank's total assets amounted to EUR 2.8 billion. During the same period, Raiffeisenbank reported total assets of EUR 15.7 billion.

The transaction should be completed at the end of the second quarter of this year, if it is approved by banking regulators.

At the end of 2020, Equa bank's total assets were EUR 2.8 billion euros. During the same period, Raiffeisenbank reported assets of EUR 15.7 billion.

In 2020, Equa bank's consolidated net profit fell by 55 percent year-on-year to CZK 182 million. Equa bank is one of the smaller banks. It entered the Czech market in 2011 after Equa Group Limited took over Banco Popolare ČR.