# OTP Bank

OTP Bank Group is the largest commercial bank of Hungary and one of the largest independent financial service providers in Central and Eastern Europe, with banking services for private individuals and corporate clients. The OTP Group comprises subsidiaries in the field of insurance, real estate, factoring, leasing and asset management, investment and pension funds. Besides Hungary, OTP Group operates in 11 countries of the region via its subsidiaries: in Albania (Banka OTP Albania SHA), in Bulgaria (DSK Bank), in Croatia (OTP banka d.d.), in Romania (OTP Bank Romania), in Serbia (OTP Banka Srbija), in Slovenia (Nova KBM d.d. and SKB d.d., OTP banka d.d. after merger in 2024), in Ukraine (OTP Bank JSC), in Moldova (OTP Bank S.A.), in Montenegro (Crnogorska komercijalna banka), in Russia (OAO OTP Bank), and in Uzbekistan (JSCMB Ipoteka Bank).
As of 2018, OTP Group had more than 36,000 employees, 13 million clients, and over 1,500 branches. OTP is the largest commercial bank in Hungary with over 25% market share.
OTP stands for Országos Takarék Pénztár (lit. 'Nationwide Savings Bank'), which indicates the original purpose of establishment of the bank. OTP went public in 1995 and has a high free float shareholder structure, with a free float ratio of 68.61%. The rest are held by Megdet Rahimkulov at 8.88%, Hungarian MOL Group at 8.57%, French Groupama at 8.3% and American Lazard at 5.64%.

## History

The oldest antecedent of OTP Bank was the First National Savings Bank of Pest, established in 1839–1840 and nationalized in 1948. In 1949, the latter's operations were transferred to the newly established Hungarian National Savings Bank Company (Hungarian: Országos Takarékpénztár Nemzeti Vállalat), one of the country's four main financial institutions alongside the Hungarian National Bank, the Hungarian Investment Bank (renamed the State Bank for Development in 1972 and liquidated in 1987),$^{:386}$ and the Hungarian Foreign Trade Bank.$^{:382}$ Until 1987 the National Savings Bank was the only retail bank in Hungary. Since 1989 the bank operated as a multi-functional commercial bank with the authorization to provide commercial loans and banking services for banks and import- export transactions.
In 1990, the National Savings Bank became a state-owned joint-stock company with a share capital of HUF 23 billion. Its name was changed to the National Savings and Commercial Bank. Subsequently, non-banking activities were separated from the bank, along with their supporting organisational units. The state lottery was reorganized into a separate state-owned company and OTP Real Estate was established as a subsidiary of the bank.
OTP Bank's privatization began in the year 1995. As a result of 3 public offers along with the introduction of the bank's shares into the Budapest Stock Exchange the state's ownership in the bank decreased to 25 percent by 1995, then to a single voting preference (golden) share by 1999 (maintained until 2007).
In 1995, OTP purchased Merkantil Bank, created in 1988 mostly as a vehicle finance provider, from its parent K&H Bank. OTP then started an international expansion targeting countries in Central and Eastern Europe, namely in Slovakia (2002), Bulgaria (2003), Romania (2004), Croatia (2005), Ukraine, Russia, Serbia and Montenegro (2006).
In 2008, Paris-based Groupama acquired OTP's insurance business. As part of the transaction, they resolved to collaborate in strategic points and cross sell their financial and insurance products. Groupama S.A. thus acquired 8% of shares of OTP Group. This transaction allowed OTP to avoid the need of state recapitalization during the financial crisis of 2008-2009; OTP only took liquidity support from the state, entailing temporary government interference in its governance, and was able to repay it fully by 2010.
In April 2014, it was announced that OTP Bank was close to a deal to acquire the Hungarian MKB Bank from German firm BayernLB, which however was not executed. French Axa Bank Europe announced in February 2016 it has entered into an agreement with OTP Bank to sell its Hungarian banking operations, which is considered as medium-sized bank in Hungary.
In 2019, OTP Bank entered into an agreement to purchase MobiasBanca of Moldova. The agreement was finalized on 25 July 2019.
In March 2022, due to international sanctions during the Russo-Ukrainian War, OTP Bank stopped financing its Russian branch.
On December 12, 2022, in Tashkent, OTP Bank signed an agreement on the privatization of 75% of the Joint-Stock Commercial Mortgage Bank "Mortgage bank". It is planned to close the deal in the first half of 2023, although the amount has not yet been disclosed. 73.41% of the shares in Ipoteka Bank JSCM were acquired from the Uzbekistan government in June 2023.

### Controversy

On 5 May 2023, Ukrainian authorities added OTP bank onto its list of international sponsors of the Russo-Ukrainian War, which the bank refutes. The Government of Hungary backed the bank stating that it would block any further EU aid to Ukraine until the bank is withdrawn from the list. The bank was removed from the list in September 2023.

## OTP Group

The Bank hosts an international organisation called the OTP group. The several parts of the group work in different areas of business.
| OTP Bank Nyrt. | Universal Bank |
| Merkantil Bank Ltd. | Personal Loans |
| Merkantil Car Ltd. | Auto Leasing |
| Merkantil Lease Ltd. | Leasing |
| OTP Building Society Ltd. | Savings Bank |
| OTP Mortgage Bank Ltd. | Mortgage Bank |
| DSK Bank (Банка ДСК) | Universal Bank (Bulgaria) |
| OTP Bank Romania SA | Commercial Bank (Romania) |
| OTP Banka Hrvatska d.d. Split | Commercial Bank (Croatia) |
| OTP Banka Srbija a.d. Novi Sad | Commercial Bank (Serbia) |
| Crnogorska komercijalna banka a.d. | Commercial Bank (Montenegro) |
| OTP Bank JSC Ukraine | Commercial Bank (Ukraine) |
| OTP Capital | Asset Management Company (Ukraine) |
| OTP Bank JSC Russia | Commercial Bank (Russia) |
| OTP Bank SA Moldova | Commercial Bank (Moldova) |
| OTP banka d.d. | Commercial Bank (Slovenia) |
| OTP Bank Albania SHA | Commercial Bank (Albania) |
| OTP Fund Management Ltd. | Investment Fund |
| OTP Real Estate Fund Management Ltd. | Investment Fund |
| Hungarian International Finance Ltd. | International Financing |
| OTP Real Estate Ltd. | Construction and sale of properties |
| OTP Lakáslízing | Mortgage |
| OTP Factoring Ltd. | Factoring, forfeiting |
| OTP Factoring Trustee Ltd. | Evaluation and sale of properties |
| OTP Pension | Non-government Pension Fund (Ukraine) |
| OTP Health Fund | Health Fund |
| OTP Travel Ltd. | Travel Agency |
| OTP Életjáradék Zrt. | Pension Fund |
| OTP Bank Uzbekistan | Ipoteka-Bank (Uzbekistan) |

## Gallery

* OTP Bank in Andrássy Avenue, Budapest, Hungary
* OTP Bank in Miskolc, Hungary
* OTP Bank in Hajdúszoboszló, Hungary
* OTP Bank in Moscow, Russia
* OTP Bank in Makarska, Croatia
* OTP Bank in Odesa, Ukraine
* OTP Bank in Bratislava, Slovakia
* OTP Bank in Šahy, Slovakia
* OTP Splitska banka in Split, Croatia
* OTP bank Pilisvörösvár, Hungary