OTP Closes Acquisition of Majority Stake in Uzbek Lender

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OTP Bank, Hungary's biggest commercial lender, announced on Tuesday the close of the acquisition of a 73.71% stake in Uzbekistan's Ipoteka Bank from the state, according to a report by state news wire MTI.

With the transaction, OTP has become the first foreign lender to participate in the privatization of Uzbekistan's banking sector.

In the next step of the transaction, the remaining shares of Ipoteka Bank held by Uzbekistan's Ministry of Economy and Finance will be purchased in three years.

Ipoteka Bank is Uzbekistan's fifth-largest lender, with a 7.6% market share based on total assets. Its loan book grew at an average annual rate of 20% over the past three years, while its deposit stock climbed at an average annual rate of 24%. Ipoteka Bank is active in both the retail and corporate segments. It has around 1.5 million retail clients.

OTP agreed to acquire close to 97% of Ipoteka Bank under a contract signed in December 2022.

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