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).[3]
As of 2018,[update] OTP Group had more than 36,000 employees, 13 million clients, and over 1,500 branches.[4] OTP is the largest commercial bank in Hungary with over 25% market share.[5]
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%.[6]
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),[7]:386 and the Hungarian Foreign Trade Bank.[7]:382 Until 1987 the National Savings Bank was the only retail bank in Hungary.[8] 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.[9]
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.[citation needed]
OTP Bank logo used between 1991 and 2007
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).[10]
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.[10]
In April 2014, it was announced that OTP Bank was close to a deal to acquire the Hungarian MKB Bank from German firm BayernLB,[11] 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.[12]
In 2019, OTP Bank entered into an agreement to purchase MobiasBanca of Moldova. The agreement was finalized on 25 July 2019.[13]
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.[15] 73.41% of the shares in Ipoteka Bank JSCM were acquired from the Uzbekistan government in June 2023.[16]
Controversy
On 5 May 2023, Ukrainian authorities added OTP bank onto its list of international sponsors of the Russo-Ukrainian War,[17] 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.[18] The bank was removed from the list in September 2023.[19]
OTP Group
Map with countries that have branch of OTP bank marked in green.The building of the OTP international headquarters and the Budapest Stock Exchange
The Bank hosts an international organisation called the OTP group. The several parts of the group work in different areas of business.
A savings bank is a financial institution that is not run on a profit-maximizing basis, and whose original or primary purpose is collecting deposits on savings accounts that are invested on a low-risk basis and receive interest. Savings banks have mostly existed as a separate category in Europe.
DSK Bank is the biggest Bulgarian bank. It was founded in 1951 as the country's savings bank, and transformed into a joint-stock company in 1999. It has been owned by Budapest-based OTP Bank since 2003.
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MKB Bank, initially Magyar Külkereskedelmi Bank, was a Hungarian state-owned bank founded in 1950. It was privatized in the mid-1990s, then renationalized in the 2010s. It eventually merged in the early 2020s with Budapest Bank and Takarékbank to form Magyar Bank Holding, branded MBH Bank, thus creating the second-largest commercial bank in Hungary behind OTP Bank. The complex three-way merger was announced in 2020 and completed in 2023.
CIB Bank is the second-biggest commercial bank in Hungary, after the 1 January 2008 merger with Inter-Európa Bank. This follows the 2007 merger of their respective Italian parent companies, Banca Intesa and Sanpaolo IMI to form Intesa Sanpaolo.
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TakarékBank was a banking and financial services corporation in Hungary and the central institution for more than 60 co-operative banks and their 1,100 branch offices. In 2023, it merged with MKB Bank to form MBH Bank.
The Hungarian Postal Savings Bank was a major savings institution in Hungary, established in 1886 as the Hungarian Royal Postal Savings Bank and terminated in 1948. It is well remembered for its head office in District V of Budapest, a striking Art Nouveau building designed by Ödön Lechner.
The Hungarian Commercial Bank of Pest was Hungary's first modern bank, established in 1840–1841. It was nationalized in the early Communist era and repurposed in 1950 as the Hungarian Trade Bank, later known as MKB Bank.
The Hungarian General Credit Bank was a major bank in Hungary, from its establishment in 1867 by the Rothschild family until its nationalization in 1948.
The First National Savings Bank of Pest (PHET), sometimes translated as First Domestic Savings Bank or referred to simply as First Savings Bank, was a major Hungarian bank that was established in 1839–1840 and was eventually nationalized in 1948, together with its universal banking affiliate Hazai Bank, established in 1895.
The Slavenska Banka was a Croatian bank based in Zagreb. It played a prominent role in the history of Croatian and Slovenian banking in the early 1920s, before going into bankruptcy in 1925.
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HUF 624.7 billion (2018) [2] 
