OTP Bank plans to boost Ukrainian branches to 200 in 2 years

Food

OTP, based in Budapest, plans to open 160 new branches of the bank it renamed CJSC OTP Bank, the Hungarian lender said in a stock exchange statement today.

OTP Bank Nyrt, the Hungarian lender that's spent $2.4 billion buying banks in eastern Europe, will boost its number of Ukrainian branches fivefold in two years and consolidate profit from a new unit in the Q4. OTP, based in Budapest, plans to open 160 new branches of the bank it renamed CJSC OTP Bank, the Hungarian lender said in a stock exchange statement today after transferring the €650 million ($833 million) purchase price to Raiffeisen International Bank AG yesterday.

OTP agreed to buy the Ukrainian bank June 1. Raiffeisen, the Austrian lender with more than 2,700 branches in eastern Europe and Russia, expects a €470 million one-time gain after closing the sale, it said in a statement today. The lender will include the profit in its Q4 income statement, the Vienna-based bank said. The purchase of Ukraine's seventh-largest lender is OTP's biggest ever.

Ukraine, a former Soviet state of 50 million people, is OTP's sixth foreign market. CEO Sándor Csányi already bought banks in Romania, Bulgaria, Croatia, Serbia and Slovakia. OTP said November 14 Q3 profit advanced to a record as economic growth in the region stoked demand for financial services. Net income rose 31% to Ft 53.6 billion (€207.9 million) from Ft 41 billion a year earlier. (Bloomberg)

ADVERTISEMENT

More Romanians at poverty risk since the COVID pandemic Analysis

More Romanians at poverty risk since the COVID pandemic

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.