Ljubljana, 28 March (STA) - Slovenia's third largest bank, Abanka, has sold its leasing subsidiary Aleasing to the Austrian-owned bank Banka Sparkasse, in line with a commitment made to Brussels.
The sale agreement was signed last July and the transaction has been completed recently after Sparkasse acquired the required regulatory approvals.
Aleasing will be integrated into the Sparkasse group as of April, the Austrian-owned bank said in a press release on Wednesday.
Headquartered in Ljubljana, Aleasing also has branch offices in Celje and Šempeter pri Gorici.
Aleasing's core business is financial leasing of movable and immovable property and operative leasing of vehicles. As part of its leasing business it also markets insurance services.
Sparkasse announced an expansion into leasing of vehicles for individuals. Both its leasing companies are to merge in the final quarter of the year under the Sparkasse brand.
Currently in sole state ownership, Abanka needs to be privatised by mid-2019 under the European Commission's decision to approve state aid to the bank in late 2013 and early 2014.
As part of the restructuring plan approved by Brussels the bank also committed to sell Aleasing.
"Sparkasse Group is fulfilling its vision to offer the best possible comprehensive user experience to its retail customers and small and medium-sized businesses," Sparkasse Banka chairman Andrej Plos said.
Banka Sparkasse generated EUR 9.2m in net profit last year. Sparkasse Group, which also comprises Sparkasse Leasing S and S Factoring, made a net profit of EUR 9.8m.