Succession: Péter Csányi appointed as new CEO of OTP Bank
Six years ago, at the 2019 general meeting, OTP decided that the positions of Chairman and CEO could be held separately. This remained only a theoretical possibility for years, with Sándor Csányi continuing to hold both positions for more than three decades since 1992.
Now, however, an era comes to an end
as OTP's Board of Directors has decided to split the two positions, with Sándor Csányi remaining as Chairman and his son Péter Csányi, who joined OTP Bank in 2016 and became Deputy CEO of the banking group in March 2021, taking over as CEO.
"In the coming years, I will continue to lead OTP's active strategy as Chairman of the Board of Directors.
I see great potential in further acquisition growth and digital and traditional improvements to improve our efficiency, and the direction of which will continue to be decided by the Board,
said Sándor Csányi.
"Over the past nine years, under Péter Csányi's leadership, OTP Bank has strengthened its digital leadership, and over the past year and a half, as Chairman of the Bank's Operational Management Committee, he has demonstrated his ability to manage the OTP Group's operations safely and securely, even in turbulent environments," he added.
The question of succession has been a frequent topic of discussion in recent years, particularly after the 2019 general meeting approved the possibility of separating the Chairman and CEO positions. At that time, Sándor Csányi repeatedly emphasized that this was only a theoretical option.
In a 2022 Forbes interview, the bank leader stated that he saw three to four executives within the bank who could be suitable for the CEO position. He also mentioned that his son Péter Csányi was among the potential candidates, while making it clear that
family ties would neither be an advantage nor a disadvantage.
According to the Board's decision, Sándor Csányi will continue his work as Chairman of the bank's Board of Directors, while Péter Csányi, currently Deputy CEO of OTP Bank's Digital Division and member of the Board, will take over as CEO. András Sebők, previously a partner at McKinsey&Company, will assume the digital leadership position from 1 May.
About Péter Csányi
I do not intend to make any changes that would jeopardise the stability of the Bank, even in the short term,
Péter Csányi said in his speech at the annual general meeting.
I will work in this position with commitment and full of energy,
he added.
Péter Csányi brings nearly two decades of international experience in the financial sector. He graduated from City University London in 2006, completed his finance master's degree at IE Business School Madrid in 2007, and earned an MBA from the Kellogg School of Management in 2015.
His career began at Merrill Lynch's London office in 2006, followed by positions at Deutsche Bank London from 2007 to 2011. He worked at McKinsey as a senior consultant from 2011 to 2016 before joining OTP Bank, where he has held various leadership positions, including heading the Digital Sales and Development Directorate. He was appointed Deputy CEO of OTP Bank in March 2021, when he also took over the management of the Digital Division. He has been elected into the Board of Directors in April of the same year.
As of December 31, 2024, Péter Csányi owned 49,429 OTP shares, with a market value of approximately HUF 1.24 billion.
High public burdens in Hungary
In Hungary, OTP Bank made a profit of HUF 270 billion, with an extra tax burden of HUF 172 billion last year, which could rise to HUF 263 billion this year, said Sándor Csányi.
Expenditure revenue indicators have not improved,
revenues are capped and expenditure is under pressure from the state burden
he added.
The bank chief is confident that the Hungarian budget will be put back on track as soon as possible and that this will reduce the burden on the banks, which is high by European standards.
OTP's profit reached HUF 1,076 billion in 2024, with improved margins, and decreasing costs. OTP has never operated with a lower cost level than currently, he said.
OTP is currently the market leader in the region and is the market leader in five countries. In its history, OTP has acquired 26 banks, and in the last 10 years the Hungarian bank has made 14 acquisitions, the bank chief said.
In Russia, the bank is still there, Csányi said they made the right decision to stay, $122m was recovered and OTP withdrew $510m in dividends from the Russian subsidiary.
They not only buy banks, they sell them. In Romania, OTP was unable to grow and eventually decided to sell its subsidiary there.
Csányi plans to go back there one day, but with a big presence, with a bigger bank than the one they had before, but perhaps with cross-border services in Romania.
Record dividend approved
The Annual General Meeting voted in favour of the dividend and OTP will set aside a general reserve of HUF 74.5 billion after last year's results and pay a dividend of HUF 270 billion, the highest ever paid by a bank.
The dividend per share is HUF 964.29. However, as the Bank does not pay dividends on its own shares, the dividend on the shares that qualify as own shares will be divided among the shareholders entitled to dividends, so that the actual dividend per share is HUF 998.9 and the dividend yield is 3.9%. The dividend will be paid from 2 June 2025.
Cover photo: Portfolio
