Péter Csányi announces where OTP will expand next
Péter Csányi, CEO of OTP, said in an interview with Bloomberg that since acquiring Ipoteka Bank in 2023, the financial institution has gained a thorough understanding of the region and sees increasing potential in it.
We like Central Asia, and due to its strong fundamentals, the region has long been on our radar,
he said.
Although no specific target country was named, the Kazakh embassy in Budapest has revealed that OTP management and the Kazakh government are already in talks about the bank's potential entry into the Kazakh market.
On 15 January, László Wolf, the Deputy CEO, met with Abzal Saparbekuli, the Ambassador, in Budapest to discuss opportunities for Hungarian companies in Kazakhstan.
Based on its market capitalisation, OTP has now become the second-largest bank in the Central and Eastern European region, behind Austria's Erste Group, according to a Bloomberg article. Following more than two decades of acquisitions, the banking group now operates in eleven countries, including Russia and Ukraine. Foreign subsidiaries now account for over 75% of the group's profits. The bank's strategy is to expand into markets where it can become a leading player. At the same time, it is selling off its interests in places where economies of scale cannot be achieved, as was the case in Romania in 2024.
This growth is also reflected in the share price. The value of OTP shares has quadrupled over the past four years, reaching an all-time high of HUF 41,890 in February of this year. The loan portfolio has tripled over the past decade, exceeding HUF 24,000 billion. Around 70% of this growth is organic, with the remainder coming from acquisitions. OTP's primary capital adequacy ratio exceeds 18%, providing significant scope for further transactions.
Thanks to our strong organic growth, we can afford to be selective,
said Péter Csányi. He added that they are under no obligation to make acquisitions if the price or target is not right. The volume of dividend payments and share buyback programmes will depend on the development of acquisition plans. Further information may be provided by management when the annual results are published on 6 March.
Cover photo: Portfolio
