OTP counts on foreign units to offset sluggish domestic market

Food

OTP Bank Nyrt expects the effects on profits of government austerity measures and increasing competition on the domestic market to be countered by growth on foreign markets, mainly in Russian and Ukraine, deputy CEO Zoltán Spéder said on Wednesday.

OTP expects Ukraine's retail loan market to expand an annual average 76% until 2009, Spéder said. In Russia, the bank expects the retail loan market to grow an annual average 52%. Profits at OTP's foreign units in the region are expected to grow an average annual 10%-17% between 2006 and 2010, as rates come down to Western European levels. Margins are being squeezed by strong competition in many countries in the region, Spéder noted. In spite of the expected increase in lending stock at the units, OTP expects the quality of the portfolio to remain unchanged. The bank expects to meet its target of achieving a 5% market share in each market where it is present, Spéder said.
OTP has bought five banks this year, including Raiffeisenbank Ukraine, Russia's Investberbank group and Serbian banks Kulska banka, Niska banka and Zepter banka. It also expects to shortly close the acquisition of Montenegro's CKB. Spéder said the bank expects to have spent €1.3 billion on acquisitions by year-end, compared to a combined €600 million in the previous six years altogether.

 

ADVERTISEMENT

Reforms to raise productivity would strengthen recovery - OE... Analysis

Reforms to raise productivity would strengthen recovery - OE...

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.