OTP banka Management Board again has three members

At today´s meeting, the OTP banka Supervisory Board was presented with the results of this year´s Comprehensive Assessment of the Bank´s financial viability and capital strength (an asset quality review [AQR] and stress tests). Under the baseline stress test scenario, the OTP banka Group achieved a Common Equity Tier I capital (CET1) ratio of 12.8%, well above the minimum requirement, while under a hypothetical adverse scenario its CET1 ratio would stand at 4.4% at the end of 2016, thereby failing to meet the minimum threshold set for this scenario. Building on these results, the European Central Bank notes that the OTP banka Group expects to cover its capital shortfall of €31 million, which was established based on the very stringent criteria of the adverse stress test scenario applicable to Slovene banks, through structured profitability improvement. An action plan setting out the action necessary to cover the assessed capital shortfall was submitted by the OTP banka Group to the European Central Bank within the set deadline and in accordance with the relevant requirements.

Apart from the results of the Comprehensive Assessment, the OTP banka Supervisory Board considered the results of OTP banka and the OTP banka Group for the period January through September 2014. OTP banka reported a profit from continuing operations also for the third quarter of the year, while making further efforts to organise its operations as well as those of the entire OTP banka Group in a cost-efficient and optimum fashion. Aleš Hauc, President of the OTP banka Management Board, said on this occasion: “There are a number of projects under way in the Bank, the results of which are already clearly apparent and are reflected in a profit that the Bank managed to generate also in the third quarter of the year. Besides these projects, we are drawing up measures to ensure an even more effective recovery of bad loans that have not been transferred to BAMC. In addition, as well as reducing our operating costs for the third consecutive year, we continue to run our business soundly and smoothly, providing our customers with a broad spectrum of first-class financial services.” The interim report of operations of the OTP banka Group for the period January through September 2014 is expected to be released on 28 November.

The OTP banka Supervisory Board was also informed about the progress of the privatisation and restructuring of the Bank. The consolidation of the OTP banka Group is proceeding in line with the adopted restructuring programme and the commitments given to the European Commission by OTP banka and the Government of the Republic of Slovenia. Given that the market has no interest in the acquisition of its leasing companies, OTP banka will, by the end of the year, start a controlled liquidation of both of its Slovene leasing companies, in accordance with the aforementioned commitments. The liquidation proceedings against KBM Fineko are in the final stage, while the Shareholders´ Meeting of Adria Bank made a ruling in September to cease banking operations.

On 1 October 2014, the OTP banka Supervisory Board unanimously agreed to appoint Sabina Župec Kranjc, currently acting as OTP banka´s Executive Director for Financial Markets, as a new member of the OTP banka Management Board. Sabina Župec Kranjc will start her five-year term of office on 17 November.
Peter Kukovica, Chairman of the OTP banka Supervisory Board, pointed out, “The OTP banka Supervisory Board backs the efforts of the current Management Board headed by Aleš Hauc to boost the performance of the Bank, but the Supervisory Board also expects the Management Board to continue implementing, in a comprehensive and responsible manner, the measures set out in the restructuring programme of the Bank and the OTP banka Group.”