OTP foresees layoffs in Croatia after merging units

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Hungary's OTP Group expects to lay off 134 employees in Croatia after it merged its units there, OTP Banka Hrvatska told Hungarian news agency MTI yesterday. OTP acquired a 98.37% stake in the Croatian subsidiary of Italy's Banco Popolare for HRK 107 mln (€14 mln) in April 2014, and merged it with its existing Croatian unit last December. 

The number of OTP branches in Croatia reportedly rose to 112 from 97 as a result of the merger, while the number of OTP employees in Croatia rose 11% to 1,125. The merger made layoffs necessary in administrative areas and at branches to be closed, OTP said.

According to Croatian media reports, the Croatian unit could have generated HRK 33 mln profits last year, which could be increased to as high as HRK 155 mln through extraordinary items.

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