Ukraine Crisis: OTP mulls 'possible withdrawal' from Russian market
An OTP Bank branch in Nizhny Novgorod, Russia.
Image by VladimirMPetrov / Shutterstock.com
OTP Bank, Hungary's biggest commercial lender, said it is weighing a possible withdrawal from the Russian market, according to a report by state news wire MTI.
"We are constantly considering whether further changes are needed regarding OTP Group's presence in Russia. We are considering all possible scenarios. Among these we are analyzing the conditions and consequences of a possible withdrawal from the Russian market," OTP said in a statement released on Friday.
"Our Russian subsidiary is operating fully in compliance with the international sanctions. We are winding down corporate lending, we do not invest in Russian government securities, and trading in such securities is suspended across the international operations of OTP Group. OTP Bank Plc does not provide financing to its subsidiary in Russia," the lender added.
OTP also affirmed its support for its bank in Ukraine in the statement.
"OTP Group is supporting Ukraine using all means available to us. We are working under wartime conditions to keep the country's financial infrastructure, and thereby the economy as a whole, operational. In addition to maintaining the operations of our subsidiary in Ukraine, we are contributing to the management of the crisis with the support of millions of euros, material donations, the collection of hundreds of thousands of euros worth of humanitarian donations among our employees and clients, and the accommodation and care of 160 refugees," the bank said.
OTP Bank Russia had an after-tax profit of HUF 37.6 billion last year, the parent bank's fourth-quarter earnings report shows.
OTP Bank Ukraine's after-tax profit reached HUF 39 bln in 2021.
Both lenders each accounted for close to 8% of OTP's group-level earnings.
Total assets of the Russian business reached HUF 800 bln at the end of December. Total assets of OTP's bank in Ukraine stood at HUF 983.6 bln.
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