Emfis

The predecessor of OTP Bank, called the National Savings Bank (OTP Bank) was established in 1949 as a nation-wide, state-owned, banking entity providing retail deposits and loans. In the following years, its activities and the scope of its authority gradually widened. First, it was authorised to enter into real estate transactions. Later, its role was extended to provide domestic foreign currency accounts and foreign exchange services; there was a subsequent diversification into providing banking services for Hungarian municipalities. Since 1989, the bank has operated as a multi-functional commercial bank. In addition to continuing its previous retail and municipal activities, the bank has been authorised to solicit corporate loan accounts and deposits, and to provide commercial loans and banking services for correspondent banking and export-import transactions.

In 1990, the National Savings Bank became a public company with a share capital of HUF 23 billion. Its name was changed to the National Savings and Commercial Bank. Subsequently, non-banking activities were separated from the bank, along with their supporting organisational units. The state lottery was reorganised into a separate state-owned company and OTP Real Estate was established as a subsidiary of the bank.

OTP Bank's privatisation began in 1995. As a result of 3 public offers along with the introduction of the bank's shares into the Budapest Stock Exchange the state's ownership in the bank decreased to a single voting preference (golden) share. Currently the bank is characterized by dispersed ownership of mostly private and institutional (financial) investors.

After the realisation of its own privatisation process, OTP Bank started its international expansion targeting countries in CEE region, which offer great economic growth potentials similar to Hungary.

OTP Bank has completed several successful acquisitions in the past years, becoming a key player in the region. OTP Group currently operates in Bulgaria (DSK Bank), Croatia (OTP banka Hrvatska), Romania (OTP Bank Romania), Serbia (Niska banka) and Slovakia (OTP Banka Slovensko) via its subsidiaries.

As steps of the international expansion, sale and purchase agreements of the acquisitions of the Serbian Zepter banka, the Ukrainian Raiffeisenbank Ukraine, the Russian Investsberbank Group and the Serbian Kulska banka were signed in the first half of 2006. The closure of these transactions is anticipated in autumn, 2006.

Based on the already closed acquisitions, OTP Group provides high quality financial solutions to meet the needs of nearly 10 million costumers through almost 1000 branches, agent networks and the state-of-the-art electronic channels.

The key measure of shareholders' value creation is the market value of the OTP Group. By the end of April in 2006, share prices of OTP Bank have increased to HUF 8100, which is approximately 81 times higher than its IPO value in 1995. At the same time BUX, the benchmark index of the Budapest Stock Exchange has shown a 16 times increase. Market capitalisation of the Bank has surged to HUF 2268 billion by the end of April, 2006, which has qualified it to the European "blue chip" category.