OTP banka Group delivers sound performance and is continuing its consolidation

For the nine-month period ended 30 September 2014, the OTP banka Group reported a net     profit of €26.4 million, against a net loss of €66.9 million incurred in the same period last year. The total income earned by the OTP banka Group in the first nine months of the year was €144.4 million, up 27.4% on the same period last year, with interest income of €84.7 million, a year-on-year increase of 27.4%, making up the largest proportion of the total income. As of 30 September 2014, the OTP banka Group´s total assets amounted to €4.46 billion, a decline of 7.2% on the 2013 year-end figure. Aleš Hauc, President of the OTP banka Management Board, said on this occasion: “Our operating results at the end of the third quarter this year demonstrate that the measures we have adopted over the last two years enabled the OTP banka Group to continue accomplishing profitable results throughout this year, while at the same time they allowed us to make progress on the implementation of our restructuring programme and endeavours to consolidate the OTP banka Group. Our principal business, banking, remains at the forefront of our efforts. In parallel to these efforts, work is continuing on the divestment and disposal of our non-strategic assets, and on a partial integration of PBS´s operations into those of OTP banka, while the liquidation of KBM Fineko has been completed. In addition, in accordance with the commitments given to the European Commission, we are gradually reducing the volume of our operations and the risk-weighted assets, and have succeeded in improving our cost-efficiency – compared with the same period last year, our operating costs went down by 8.7%.”

The total capital adequacy ratio of the OTP banka Group and OTP banka at the end of September 2014 was 21.88% and 24.54%, respectively. In the first nine months of the year, the OTP banka Group set side €33.2 million of net provisioning charges, a considerable reduction from the same period last year (€95.7 million). Sabina Župec Kranjc, Member of the OTP banka Management Board, commented: “We see that the creation of new non-performing loans is slowing down. While the specialised departments of the Bank actively manage assets at risk that have not been transferred to BAMC, we are devoting particular attention to monitoring the operations of our corporate customers. As a member of various bank syndicates, OTP banka is participating actively in several company restructurings, which is one of the necessary steps to revive economic growth in Slovenia.”

Despite a decline in its total assets, OTP banka managed throughout the year to retain its market share in deposits from and loans to the non-banking sector at a relatively stable level. Robert Senica, Member of the OTP banka Management Board, emphasised: “The range of our products and services is constantly upgraded and adapted to the needs of our customers. In the third quarter of the year, we intensified our marketing campaigns and offered our customers, among other services, three new insurance products, the option to open a personal account without visiting a branch office, special-rate housing and consumer loans, and a revamped website. At the moment, we are making a comprehensive overhaul of our offering of payment cards, which from next year will allow contactless payments and payments in instalments.” Moreover, the Bank is in the process of upgrading the business payment cards it issues, while in the third quarter of the year it added special product packages to the range of products and services it provides to some specific groups of entrepreneurs and private undertakings. OTP banka is continuing to strengthen its relationships with its customers through various forms of cooperation, all of which constitute an added value for them. Among these initiatives were OTP banka free autumn educational workshops, which were attended by as many as 170 entrepreneurs in six Slovene cities and which received very positive feedback.

OTP banka also successfully reached a young target audience through an innovative marketing campaign called 'Zlatko – Živim lajf' (Zlatko – Living Life). Yesterday, at the 16th International Media Trends Conference (SEMPL), the central event for media and communications professionals in the region, this campaign won the main prize: the Grand Sempler for the best media strategy, in addition to receiving two Golden Semplers. On 1 December, as part of activities in the area of social responsibility, the Bank will start the charity campaign 'Donate a Book, Donate a Future'. New and used children´s books, which OTP banka employees and customers will collect until 23 December in all branch offices and the headquarters, will be given to the Friends of Youth Association of Slovenia to be used by it for arranging and filling children´s libraries at holiday houses where children from socially vulnerable families spend holidays.