OTP Bank to invest $200 mln at Russian unit next year
Hungary's OTP Bank plans to invest $200 million in its recently-acquired Russian unit Investsberbank, Russian daily Vedomosti reported on Monday.
OTP Bank Nyrt will inject $200 million into the bank to expand its network and broaden its product portfolio, Investsberbank deputy CEO Anton Mihalkov told the paper. The first $50 million of the capital raise will come in the Q1 of next year, he said. So far this year, Investsberbank has introduced new products for SMEs as well as for retail clients, including car loans. Next year, the bank will launch a mortgage loan program, Mihalkov said.
OTP Bank acquired 96.4% of Investsberbank at the end of October after paying 90% of the $477.5 million purchase price. The remaining 10%, or $50 million, was placed in escrow to cover possible guarantee claims for a period of one year. OTP Bank said earlier it planned to recoup its investment in 8-10 years. Investsberbank targets a 60% increase in total assets in 2006 over last year's €979.5 million. It expects pre-tax profits of €25 million - 30 million. (Mti-Eco)
ADVERTISEMENT
Minister Asks Banks to Introduce Voluntary Rate Caps
Gov't Raises 2023 Deficit Target to 5.2%Â of GDP
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.
