‘Once in a Blue Moon’: M&A Case of Prima Bank Slovakia

Abstract

Mergers and acquisitions (M&A) impact financial performance, but research on bank acquisitions in Slovakia remains limited. This study examines the financial performance of Prima Bank Slovakia JSC before (2009–2015) and after (2016–2022) its acquisition of Sberbank Slovakia JSC, approved by the National Bank of Slovakia in 2017. Using a case study approach, we analyse five key financial indicators: (a) client deposits, (b) loans granted, (c) profitability, (d) interest income and (e) return on equity (ROE). Drawing on secondary data from FinStat, Registry of Financial Statements and annual reports, our findings reveal that Prima Bank’s post-acquisition financial performance improved, influenced by both economic conditions and M&A effects. Unlike previous studies, this research integrates a SWOT analysis to assess the strategic advantages and challenges for both banks. By focusing on a domestic bank acquiring a foreign entity, our study provides valuable insights into M&A dynamics in the Slovak banking sector.