French insurance firm AXA has agreed to sell its Hungarian banking operations to OTP Bank.

AXA Bank Hungary, a subsidiary of AXA Bank Europe, manages a credit portfolio put in run-off in 2011, along with daily banking operations. The bank has been operating in Hungary since 2009.

The deal will include transfer of AXA Bank’s retail credits and savings, corporate portfolio and employees.

Subject to regulatory approvals, the transaction is expected to be completed in the second half of 2016.

AXA Bank Europe CEO Jef Van In said: “This transaction is the final step in the repositioning of AXA Bank Europe as a fully focused Belgian retail bank, serving almost one million clients and operating jointly with AXA Insurance in Belgium.”