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OTP Bank

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OTP Bank Nyrt.
Company typePublic
BPSE: OTP
Euronext: OTP
BUX Component
CETOP20 Component
IndustryBanking, Financial services
Founded1949
Headquarters
Budapest
,
Hungary
Area served
Central and Eastern Europe
Key people
Sándor Csányi
(Chairman & CEO)
ProductsConsumer banking, corporate banking, credit cards, finance and insurance, foreign currency exchange, investment banking, mortgage loans, private banking, private equity, wealth management
RevenueIncrease HUF 645.465 billion (2012)[1]
Increase HUF 145.674 billion (2012)[1]
Increase HUF 122.586 billion (2012)[1]
Total assetsDecrease HUF 10133.4 billion (2012)[1]
Total equityIncrease HUF 1514.55 billion (2012)[1]
Number of employees
36,366 (2012)[1]
SubsidiariesOTP banka Srbija, DSK Bank, Crnogorska banka, see full list in OTP Group section
Websiteotpbank.com

OTP Bank Group is one of the largest independent financial services providers in Central and Eastern Europe with full range of banking services for private individuals and corporate clients. OTP Group comprise large subsidiaries, granting services in the field of insurance, real estate, factoring, leasing and asset management, investment and pension funds. The bank is serving clients in 9 countries, namely Hungary, Slovakia, Bulgaria, Serbia, Romania, Croatia, Ukraine, Montenegro and Russia. All of the banks' markets carries a high potential for growth in the future.

Nowadays OTP Groups' more than 36,000 employees are serving 13 million clients in over 1,500 branches and through electronic channels on all the markets of the bank.[2] OTP is still the largest commercial bank in Hungary with over 25% market share.[3]

OTP Group started its activity in 1949 when OTP Bank was founded as a state savings and commercial bank. OTP stands for Országos Takarék Pénztár (National Savings Bank) which indicates the origin purpose of establishment of the bank. The bank went public in 1995, and the share of the state in the bank capital decreased to one preferential gold share, which also eliminated shortly thereafter. Currently most of the banks' shares are owned by private and institutional investors, which ensures stable ownership structure of the company. OTP has a high free float shareholder structure, the free float ratio reaches the 68,61%. The rest is held by one of the Forbes billionaire Megdet Rahimkulov in 8,88%, Hungarian MOL Group in 8,57%, French Groupama in 8,30% and American Lazard in 5,64%.[4]

History

The predecessor of OTP Bank, called the National Savings Bank (OTP Bank) was established in 1949 as a nationwide, state-owned, banking entity providing retail deposits and loans. In the ensuing years, its activities and the scope of its authority gradually widened. First, it was authorised to enter into real estate transactions. Later, its role was extended to provide domestic foreign currency accounts and foreign exchange services; there was a subsequent diversification into providing banking services for Hungarian municipalities. Since 1989, the bank has operated as a multi-functional commercial bank. In addition to continuing its previous retail and municipal activities, the bank has been authorised to solicit corporate loan accounts and deposits, and to provide commercial loans and banking services for correspondent banking and export-import transactions.

In 1990, the National Savings Bank became a public company with a share capital of HUF 23 billion. Its name was changed to the National Savings and Commercial Bank. Subsequently, non-banking activities were separated from the bank, along with their supporting organisational units. The state lottery was reorganised into a separate state-owned company and OTP Real Estate was established as a subsidiary of the bank.

OTP Bank logo used between the early 90s and 2007

OTP Bank's privatisation began in 1995. As a result of 3 public offers along with the introduction of the bank's shares into the Budapest Stock Exchange the state's ownership in the bank decreased to a single voting preference (golden) share. Currently the bank is characterized by dispersed ownership of mostly private and institutional (financial) investors.

After the realisation of its own privatisation process, OTP Bank started its international expansion targeting countries in CEE region, which offer great economic growth potentials similar to that of its domestic market.

OTP Bank has completed several acquisitions in the past years, becoming a key player in the region. Besides Hungary, OTP Group currently operates in 8 countries of the region via its subsidiaries: in Bulgaria (DSK Bank), in Croatia (OTP banka Hrvatska), in Romania (OTP Bank Romania), in Serbia (OTP banka Srbija), in Slovakia (OTP Banka Slovensko), in Ukraine (OTP Bank JSC), in Montenegro (Crnogorska komercijalna banka) and in Russia (OAO OTP Bank). 2008 was milestone in OTP Bank history since it was the first time to sell one of its subsidiaries. The French Groupama S.A. acquired its insurance business line, and part of the transaction they resolved to collaborate in strategic points and crossell their financial and insurance products. Groupama S.A. has acquired 8% of shares of OTP Group.

In April 2014, it was announced that OTP Bank was close to a deal to acquire the Hungarian MKB Bank from German firm BayernLB.[5] French AXA Bank Europe announced on February 2016 it has entered into an agreement with OTP Bank to sell its Hungarian banking operations, which is considered as medium-sized bank in Hungary.[6]

OTP Group

OTP Bank in Moscow, Russia
OTP Bank in Bratislava, Slovakia
OTP Bank in Zagreb, Croatia

The Bank hosts an international organisation called the OTP group. The several parts of the group work in different areas of business.

  • OTP Bank Rt.- Universal Bank
  • Merkantil Bank Ltd.- Personal Loans
  • Merkantil Car Ltd.- Auto Leasing
  • Merkantil Lease Ltd.- Leasing
  • OTP Building Society Ltd.- Savings Bank
  • OTP Mortgage Bank Ltd.- Mortgage Bank
  • DSK Bank|DSK BANK EAD, BULGARIA - Universal Bank
  • OTP Banka Slovensko, a.s.- Universal Bank
  • OTP Bank Romania SA- Commercial Bank
  • OTP banka Hrvatska- Commercial Bank
  • OTP Capital - Asset Management Comnany (Ukraine)
  • OTP Fund Management Ltd.- Investment Fund
  • OTP Real Estate Fund Management Ltd.- Investment Fund
  • Hungarian International Finance Ltd.- International Financing
  • OTP Real Estate Ltd.- Construction and sale of properties
  • OTP Lakáslízing - Mortgage
  • OTP Factoring Ltd.- Factoring, forfeiting
  • OTP Factoring Trustee Ltd.- Evaluation and sale of properties
  • OTP Pension - Non-government Pension Fund (Ukraine)
  • OTP Health Fund- Health Fund
  • OTP Travel Ltd.- Travel Agency
  • OTP Életjáradék Rt. - Pension Fund

See also

References

  1. ^ a b c d e f "Annual Report 2012" (PDF). OTP. Retrieved 30 May 2013.
  2. ^ https://www.otpbank.hu/portal/en/OTPGroup
  3. ^ https://www.otpbank.hu/portal/en/OTPGroup/OTPBank
  4. ^ http://client.bse.hu/menun_kivuli/portlets/companyprofile?security=528
  5. ^ "Hungary's biggest bank OTP nearing deal to buy MKB". Reuters. 8 April 2014.
  6. ^ "OTP agrees to buy Axa's Hungarian banking unit". IntelliNews. 2016.
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