OTP Bank
Encyclopedia
OTP Bank is the biggest commercial bank
in Hungary
, operating in Central
and Eastern Europe
. The bank provides universal financial services for more than 13 million costumers, through nearly 1500 branches in 9 countries.
The predecessor of OTP Bank, called the National Savings Bank (OTP Bank) was established in 1949. OTP stands for Országos TakarékPénztár (National Savings Bank) which indicates the state-owned origin of the bank.
Ownership share: Domestic shareholders: 29.1%, Foreign shareholders: 70.9% (At the end of 1Q 2011)
In 1990, the National Savings Bank became a public 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 reorganised into a separate state-owned company and OTP Real Estate was established as a subsidiary of the bank.
OTP Bank's privatisation began in 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 a single voting preference (golden) share. Currently the bank is characterized by dispersed ownership of mostly private and institutional (financial) investors..
After the realisation of its own privatisation process, OTP Bank started its international expansion targeting countries in CEE region, which offer great economic growth potentials similar to that of its domestic market.
OTP Bank has completed several successful acquisitions in the past years, becoming a key player in the region. Besides Hungary, OTP Group currently operates in 8 countries of the region via its subsidiaries: in Bulgaria (DSK Bank), in Croatia (OTP banka Hrvatska), in Romania (OTP Bank Romania), in Serbia (OTP banka Srbija), in Slovakia (OTP Banka Slovensko), in Ukraine (OTP Bank JSC), in Montenegro (Crnogorska komercijalna banka) and in Russia (OAO OTP Bank).
2008 was milestone in OTP Bank history since it was the first time to sell one of its subsidiaries. The french Groupama S.A. acquired its insurance business line, and part of the transaction they resolved to collaborate in strategic points and crossell their financial and insurance products. Groupama S.A. has acquired 8% of shares of OTP Group.
OTP Group provides high quality financial solutions to meet the needs of more than 13 million costumers through almost 1500 branches and the electronic channels.
The Bank hosts an international organisation called the OTP group. The several parts of the group work in different areas of business.
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
in Hungary
Hungary
Hungary , officially the Republic of Hungary , is a landlocked country in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west. The...
, operating in Central
Central Europe
Central Europe or alternatively Middle Europe is a region of the European continent lying between the variously defined areas of Eastern and Western Europe...
and Eastern Europe
Eastern Europe
Eastern Europe is the eastern part of Europe. The term has widely disparate geopolitical, geographical, cultural and socioeconomic readings, which makes it highly context-dependent and even volatile, and there are "almost as many definitions of Eastern Europe as there are scholars of the region"...
. The bank provides universal financial services for more than 13 million costumers, through nearly 1500 branches in 9 countries.
The predecessor of OTP Bank, called the National Savings Bank (OTP Bank) was established in 1949. OTP stands for Országos TakarékPénztár (National Savings Bank) which indicates the state-owned origin of the bank.
Ownership share: Domestic shareholders: 29.1%, Foreign shareholders: 70.9% (At the end of 1Q 2011)
History
The predecessor of OTP Bank, called the National Savings Bank (OTP Bank) was established in 1949 as a nation-wide, state-owned, banking entity providing retail deposits and loans. In the ensuing years, its activities and the scope of its authority gradually widened. First, it was authorised to enter into real estate transactions. Later, its role was extended to provide domestic foreign currency accounts and foreign exchange services; there was a subsequent diversification into providing banking services for Hungarian municipalities. Since 1989, the bank has operated as a multi-functional commercial bank. In addition to continuing its previous retail and municipal activities, the bank has been authorised to solicit corporate loan accounts and deposits, and to provide commercial loans and banking services for correspondent banking and export-import transactions.In 1990, the National Savings Bank became a public 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 reorganised into a separate state-owned company and OTP Real Estate was established as a subsidiary of the bank.
OTP Bank's privatisation began in 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 a single voting preference (golden) share. Currently the bank is characterized by dispersed ownership of mostly private and institutional (financial) investors..
After the realisation of its own privatisation process, OTP Bank started its international expansion targeting countries in CEE region, which offer great economic growth potentials similar to that of its domestic market.
OTP Bank has completed several successful acquisitions in the past years, becoming a key player in the region. Besides Hungary, OTP Group currently operates in 8 countries of the region via its subsidiaries: in Bulgaria (DSK Bank), in Croatia (OTP banka Hrvatska), in Romania (OTP Bank Romania), in Serbia (OTP banka Srbija), in Slovakia (OTP Banka Slovensko), in Ukraine (OTP Bank JSC), in Montenegro (Crnogorska komercijalna banka) and in Russia (OAO OTP Bank).
2008 was milestone in OTP Bank history since it was the first time to sell one of its subsidiaries. The french Groupama S.A. acquired its insurance business line, and part of the transaction they resolved to collaborate in strategic points and crossell their financial and insurance products. Groupama S.A. has acquired 8% of shares of OTP Group.
OTP Group provides high quality financial solutions to meet the needs of more than 13 million costumers through almost 1500 branches and the electronic channels.
OTP Group
- OTP Bank Rt.- 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 EAD, BULGARIA - Universal Bank
- OTP Banka Slovensko, a.s.- Universal Bank
- OTP Bank Romania SA- Commercial Bank
- OTP banka Hrvatska- Commercial Bank
- 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 -
- OTP Factoring Ltd.- Factoring, forfeiting
- OTP Factoring Trustee Ltd.- Evaluation and sale of properties
- OTP Pension Fund Ltd.- Pension Fund
- OTP Health Fund- Health Fund
- OTP Travel Ltd.- Travel Agency
- OTP Életjáradék Rt. -