At yesterday´s meeting, the OTP banka Supervisory Board was provided with the report on the operations of OTP banka and other companies in the OTP banka Group for the period January through October 2014. According to the financial data for this period, the performance of both OTP banka and the OTP banka Group was in line with, or even exceeded, the planned figures. Building on the strong performance delivered so far, the second largest banking group in Slovenia expects to end the financial year of 2014 with a profit.
The Supervisory Board consented to the proposed financial plan of OTP banka and the OTP banka Group for the year 2015. As stated in the plan, OTP banka expects to generate a net profit of about €35 million in 2015, provided no significant changes occur in its economic environment. The implementation of the restructuring programme will remain a priority also in 2015, with the key objective of this restructuring being to re-establish OTP banka and the OTP banka Group as successful and profitable financial institutions. Among the commitments set out in the restructuring programme is the obligation placed on OTP banka to gradually reduce its total assets. In line with this obligation, the financial plan forecasts that the total assets of OTP banka will shrink to €3.5 billion by the end of 2015. Furthermore, OTP banka will continue making efforts to scale down its operating costs. These are expected to be reduced by 3.1% in 2015.
According to the adopted financial plan, the OTP banka Group expects to report a profit of about €28.2 million for 2015, while its total assets are projected to reach €4.3 billion. Work will go on to streamline the operations of OTP banka and its subsidiaries. In 2015, the OTP banka Group will take additional steps to further consolidate its operations, concentrating its resources on strategically important and profitable businesses. The gradual restructuring of the OTP banka Group in 2015 will, among other changes, include the liquidation of its leasing companies, and of Adria Bank. As regards the partial integration of PBS´s operations into those of OTP banka, work will be undertaken next year to enhance the cost-efficiency of PBS and to develop tools to enable the active management of this key subsidiary of OTP banka.
The Supervisory Board was also given details on the progress of privatisation of the OTP banka Group. The privatisation process is still in the second stage, and during this period potential investors may, in accordance with the sale procedure, prepare and submit their binding offers. OTP banka, as the subject of the sale, is meeting all its obligations arising from the sale process and is providing potential investors with all relevant information.
