OTP BANK
Continuing growth in net profits of 20.3% and another year of outstanding profitability with RoE at 32.3% contributed to another landmark year in 2005 for OTP Bank.
The bank continued its regional expansion drive by concluding the purchase of Nova banka in Croatia and Niska banka in Serbia, giving it a presence in eight foreign countries and huge growth potential in the region.
In a declining interest rate environment, the bank generated record net interest revenues and the non-interest revenues also grew dynamically. As a result OTP has a stable A1 rating from Moody’s and the highest financial strength among its regional peers. Dominant in all major market niches in Hungary, OTP also successfully completed two benchmark bond transactions.
Dr Sándor Csányi, chairman and CEO, says: “The OTP Group has remained one of Europe’s most profitable financial groups with a RoE consistently above 30% while it has carried out significant cross-border expansion. The group has managed to maintain its growth momentum, and it belongs to the mid-sized banks in Europe with its consolidated total assets of about €20bn.
“The group has further strengthened its regional position this year; thanks to six bank acquisitions in 2006, it already provides financial services to more than 11 million clients in nine countries. The foreign subsidiaries are expected to boost their contribution to group-level net profits to 30% in 2007 from about 14% in 2006. The bank, currently capitalised at about €8bn, will be among the biggest banks in Europe by market capitalisation [within the next] eight years.”
