Equity
OTP will be in race to acquire Citigroup's Hungarian consumer business - Csányi
OTP will compete for Citi clients
Speaking to InfoRadio Csányi said OTP stands a good chance of acquiring the customers of Citibank’s consumer business as it leaves the Hungarian market.
“In agriculture, our market share rose to 14% from 7% recently. We continue to focus on this sector; the creditworthiness of agriculture in general - I’m primarily not referring to the food industry - is better than of other sectors. [...] We will do our best to be dominant players in this segment, i.e. in agriculture and the food industry," he said.
“We also intend to compete in the retail segment. After the 2008 crisis risk management at the banks have become much more sophisticated, not only in corporate but also in retail lending. There will be a huge race for good customers."
According to Csányi’s information, the settlement law [which obliges banks to compensate clients for past lending practices the government and courts deemed unfair] prescribes that the conversion of foreign currency loans into forints will take place on a single day rather than over a longer period. “Different actions could be launched for the sake of market consolidation after that. Within reasonable limits we will compete."
“OTP Bank is market leader in private banking in Hungary; in view of the quality of our services and the stability of the bank we can successfully compete for the customers of Citibank, we will try to acquire them," Csányi added.
Citigroup announced two weeks ago its intention to exit its consumer businesses in 11 markets, including Hungary.
On 14 October it announced "strategic actions to accelerate the transformation of Global Consumer Banking (GCB) by focusing on those markets where it has the greatest scale and growth potential."
The affected businesses include the consumer franchises in Costa Rica, Czech Republic, Egypt, El Salvador, Guam, Guatemala, Hungary, Japan, Nicaragua, Panama and Peru, as well as the consumer finance business in Korea.
1 or 2 large banks will exit Hungary
Speaking to businessmen at an event (‘Agrárhajó’) Csányi said Hungary’s growth estimated to exceed 3% this year would be the result of one-off factors, and because of that GDP will not rise by more than 2% in the following years. The engine of growth remains EU transfers, he added.
In his view, one or two large banks will exit Hungary and the ratio of state-owned and Hungarian-owned banks will continue to increase.
"There is such a shortage of capital at European banks in general that the parent banks will think twice where they will allocate their excess capital, if they have any. They will obviously use it - every larger bank has subsidiaries not only in Hungary, but also in the neighbouring countries - where they can realise larger income," he added.
Speaking to InfoRadio Csányi said OTP stands a good chance of acquiring the customers of Citibank’s consumer business as it leaves the Hungarian market.
“In agriculture, our market share rose to 14% from 7% recently. We continue to focus on this sector; the creditworthiness of agriculture in general - I’m primarily not referring to the food industry - is better than of other sectors. [...] We will do our best to be dominant players in this segment, i.e. in agriculture and the food industry," he said.
“We also intend to compete in the retail segment. After the 2008 crisis risk management at the banks have become much more sophisticated, not only in corporate but also in retail lending. There will be a huge race for good customers."
According to Csányi’s information, the settlement law [which obliges banks to compensate clients for past lending practices the government and courts deemed unfair] prescribes that the conversion of foreign currency loans into forints will take place on a single day rather than over a longer period. “Different actions could be launched for the sake of market consolidation after that. Within reasonable limits we will compete."
“OTP Bank is market leader in private banking in Hungary; in view of the quality of our services and the stability of the bank we can successfully compete for the customers of Citibank, we will try to acquire them," Csányi added.
Citigroup announced two weeks ago its intention to exit its consumer businesses in 11 markets, including Hungary.
On 14 October it announced "strategic actions to accelerate the transformation of Global Consumer Banking (GCB) by focusing on those markets where it has the greatest scale and growth potential."
The affected businesses include the consumer franchises in Costa Rica, Czech Republic, Egypt, El Salvador, Guam, Guatemala, Hungary, Japan, Nicaragua, Panama and Peru, as well as the consumer finance business in Korea.
1 or 2 large banks will exit Hungary
Speaking to businessmen at an event (‘Agrárhajó’) Csányi said Hungary’s growth estimated to exceed 3% this year would be the result of one-off factors, and because of that GDP will not rise by more than 2% in the following years. The engine of growth remains EU transfers, he added.
In his view, one or two large banks will exit Hungary and the ratio of state-owned and Hungarian-owned banks will continue to increase.
"There is such a shortage of capital at European banks in general that the parent banks will think twice where they will allocate their excess capital, if they have any. They will obviously use it - every larger bank has subsidiaries not only in Hungary, but also in the neighbouring countries - where they can realise larger income," he added.
