Message from the management of OTP Bank Romania

„In 2010, we focused all our efforts on being close to our clients, but also on defining and implementing a strict cost control strategy. We rapidly reacted to the ever-changing financial-banking environment.”

„2010 continued to be a difficult year for the players on the banking market. The delicate economic climate raised a series of uncertainties and doubts, coming both from clients and financial institutions.

In that very context, an important fact for OTP Bank Romania turned out to be its real client oriented policy, with special focus on finding the proper solutions for the identified financial needs. Moreover, we managed to take the client-bank relationship to another level. Thus, OTP Bank Romania is not just a financial products and services provider, but a true adviser for its clients. Trust, flexibility and closeness are very important attributes that we take into consideration in our relationship with them.

Moreover, fast responsiveness was a significant condition in 2010, towards both the clients’ needs and the ever-changing financial-banking environment.

This year, we will continue to be cautious and act responsibly towards our clients, so as to continue what we have managed to build in more than 6 years of presence on the Romanian market.

Thank you for being with us."

László Diósi
CEO
OTP Bank Romania

 

OTP Asset Management: awarded by the capital market community

OTP Asset Management Romania received, after a series of nominees, more awards during the 8th edition of the Annual Gala of the Capital Market Awards. The distinctions stand as a public recognition of the active contribution the company brings to the development of the Romanian capital market.

OTP Asset Management Romania received the highest distinction, „The Excellence Award for the Contribution to the Development of the Capital Market”, as well as other two popularity awards, expressed by the public through electronic voting, during November 16-20. As a result, the public’s vote turned out to be in full accordance with professionals’ choice. Thus OTP Asset Management was awarded the same excellence prize, as an undeniable proof of the positive impact the company has among investors.

The third award for the most appreciated performance to the BSE quota was a popularity one, also and it went to OTP WiseRO closed investment fund with guaranteed capital, which was listed on Bucharest Stock Exchange in 2009.

The Capital Market Awards Gala is the result of a monitoring and analysis process of the events and performances of all the agents involved in the well function of the capital market and economy in Romania.

Representatives of the member societies of the Brokers Association propose the nominees for each awarded category and they name, through electronic voting, the winners which are also the stars of the prize awarding festivity.

 

OTP Bank Romania in 2010

2010 was a year marked by challenges, as the financial conditions were ever-changing. The management had to permanently adapt the business decisions to the continuous changing landscape and continue with the cost reduction process, so as to face the upcoming of an uncertain business environment.

In spite of such a delicate economic climate, the challenges we faced proved to be not only challenges, but also opportunities to consolidate our position on the local market and especially to strengthen the relationship we have with our clients. Even more, in 2010, we dedicated to one of our most important goals – to prove to our clients that they are our most important asset.

OTPdirekt service has known, during these years, a series of improvements. Starting January 11, 2010, OTP Bank Romania provides a new facility, for the beginning only available for individual and juridical clients from Sfantu Gheorghe: the online payment of taxes, through OTPdirekt service. In 2010, OTPdirekt was also expanded with a new option: ”Alerta Curs BNR”. This facility is available both for individual and corporate clients and sends NBR rates directly on the mobile phone, in real time.

The series of innovations continued, within the same service, with the Electronic RM option. This option offers to OTP Bank’s customers real time information via Internet Banking application about: the ongoing credit; receipts from cheques and promissory notes or cheques and promissory notes issued to suppliers, received for payment.

OTP Bank Romania has always been a trustful partner for Small and Medium Enterprises. For these particularly, we launched the “Business Kombat” campaign in May. The clients who chose one of the packages for SMEs, between May 10 – July 9, could benefit from six months of free subscription. Moreover, those clients who already subscribed to Confort or Electronic packages could choose from any of the premium packages, with no additional cost for six months. With the occasion of the campaign, we also launched a dedicated website: www.business-kombat.ro.

2010 also brought the launch of the mobile website, OTP Bank Romania thus being one of the first financial institutions in Romania to offer this facility. The website provides to its visitors the latest financial information and facilitates communication with the bank clients.

In August, the platform OTPdirekt - Internet Banking became more mobile than ever, due to the most recent improvements which enable it to be accessed from any mobile phone, regardless of the operating systems available at the moment on the market.

From financial point of view, 2010 proved to be a good year for the Romanian subsidiary of OTP Group. OTP Bank Romania recorded a 64% increase of the total non-interest income, compared to year 2009.

The volume of net loans to customers increased by 5% in 2010. The deposits taken from clients increased with 8% at the end of 2010, compared to the previous year, while borrowings from other banks and financial institutions decreased with 38% in 2010, due to the fully reimbursement of a loan facility contracted on medium term.

The level of non-performing loans was significantly below the market.

Even though OTP Bank Romania managed very efficiently the client’s overdue payments, through the debtor protection program, the provisions for credit risk were significantly higher, with a 62% increase, compared to 2009.

The debtor protection program is a special project that still makes a difference on the local banking market. It aims at supporting those individual clients and companies who previously contracted loans and which due to the economic environment conditions have to face downwards in their monthly incomes or business activity. Launched ever since 2009, the program went on successfully during 2010 as well.

In 2010, the clients’ trust in the stability of the bank was doubled by the shareholders’ trust. Thus, the continuous involvement and support of the Group was again proved when an increase of Bank’s share capital with 80 million RON was performed by the main shareholder.

Besides our financial evolution, OTP Bank Romania had a year of strong social involvement through several successful campaigns that brought us closer to the people and their everyday needs. The best example is the “Right to Read” campaign, the first national CSR program of the bank, which had a great impact in 2010. 53 rural schools were fully equipped with books and the proper furniture, thus more than 11.000 children received back their natural right to read.

We trust that in 2011, OTP Bank Romania will continue a financial positive trend and that the values we truly believe in, trust, responsibility and stability will continue to define OTP Bank Romania.

 

OTP Group in 2010

OTP Group recorded in 2010 HUF 162 billion adjusted profit after tax by 7% higher than in 2009. Including the HUF 29.5 billion net effect of the special banking tax, as well as the net HUF 15 billion goodwill write off, the accounting net result is HUF 118 billion.

In 2010 the operating profit reached HUF 467 billion (+7% y-o-y), adjusted by one-off items its volume represented HUF 436 billion, i.e. flat to 2009 level.