Successful restructuring and performance of the OTP banka Group in 2014

As of 31 December 2014, the OTP banka Group comprised the parent company (OTP banka), ten subsidiary companies, and an associated company, with the total number of staff working in the Group standing at 1,751. Intensive consolidation activities took place in the Group last year. The divestment of strategically less significant businesses of the Group continued with the liquidation of KBM Fineko and its deletion from the court register. In autumn, the work began on the termination of the banking activities of Adria Bank and its envisaged winding down, while just before the end of the year KBM Leasing and Gorica Leasing filed for liquidation. Thus, the key task set for 2014 with respect to the consolidation of the OTP banka Group was accomplished. The consolidation of the Group will continue in 2015, with the focus on banking operations and the operations of key members of the Group. It is expected that the liquidation proceedings against the Group leasing companies will be completed by the end of the year. Gradual integration of the operations of PBS into those of OTP banka, one of the largest consolidation projects, is also planned to be undertaken this year.

For the year ended 31 December 2014, the OTP banka Group reported a net profit of €23.3 million. Operating costs incurred by the Group last year were down 14.7% from a year ago, with staff costs making up 48.0% of the total operating costs. The cost-to-income ratio (CIR) of the Group and OTP banka improved year-on-year from 64.56% to 62.14%, and from 54.45% to 48.94%, respectively. In 2014, the Group set aside net provisioning charges of €44.5 million, a considerable reduction from 2013, and generated a net interest income of €110.7 million. At the end of 2014, the Group´s total assets equalled €4.4 billion, which was in line with the adopted restructuring programme.

The strategic direction of the OTP banka Group for 2015 remains unchanged: OTP banka and its subsidiaries will continue to deliver cost-efficient and profitable results across the retail and corporate banking divisions. While retail and corporate banking will continue to be the Group´s core business, its primary focus will be on providing customers with comprehensive, first-grade and contemporary financial solutions. Instead of pursuing business growth, the Group will give preference to ensuring the quality of its loan portfolio and to pro-active risk management. Through consistent implementation of the restructuring programme, coupled with the professional and responsible work of its employees, the OTP banka Group will strive to meet the expectations of the owner, customers, business partners and other stakeholders of OTP banka and its subsidiaries.