OTP Bank
OTP Bank, Hungary’s largest bank, has won Bank of the Year from the Emerging Markets not only because of its excellent financial performance but also because it has been in the forefront of technical innovation and has managed to achieve considerable success in its international expansion strategy.
In a region dominated by foreign-owned banks, locally owned OTP Bank has expanded net profits by more than 20% a year for the past three years (21% in 2002) and produced an ROE of more than 30% a year over the period (30.3% in 2002), arguably the best-performing bank in central and eastern Europe.
Additionally, new internet and mobile phone services make OTP the first and only Hungarian bank able to carry out active transactions through all banking channels. But, besides having more than a 52% market share in the domestic housing market, the bank is keen to increase its regional position and over the past year has made two key bank acquisitions in Slovakia and Bulgaria.
The purchase of Investicna a Rozvojov Banka (now OTP Banka Slovensko) and in May the acquisition of DSK Bank, Bulgaria’s second-largest bank, demonstrate OTP’s strength and ambition and also proves that the growing CEE region is not just the preserve of the large foreign banks.
