Hungary's OTP Group plans to stay in Ukraine
Hungary's OTP Bank is not planning to leave Ukraine, despite the large losses of its Ukrainian subsidiary bank – OTP Bank (Kyiv) – in 2014, OTP Bank CEO Sandor Csanyi said at a press conference in Budapest (Hungary) devoted to the results of the group's operations.
According to a press release issued by OTP Bank, OTP Bank top managers believe that in 2015 the Ukrainian subsidiary will continue to face losses but they are to fall along with the reduction of expenses and the realization of a comprehensive program on process optimization.
The shareholder will revise its business strategy in Ukraine, taking into account real economic conditions in the country, reads the report.
According to the report, some measures taken by the parent bank on additional capitalization of OTP Bank in Ukraine is evidence of the OTP Group's plans to continue supporting its business in Ukraine.
"In Q1 2015, OTP Bank increased capital via conversion of a subordinated loan into the bank's capital thanks to an additional issue of shares and bonuses authorized by the shareholder worth around UAH 1.2 billion. In Q2… the bank plans to prolong the subordinated loan of $65 million provided by the EBRD with support and guarantee of the parent bank," reads the report.
OTP Bank was founded in 1998. Its sole shareholder is Hungary's OTP Bank Plc.