OTP Bank, Hungary's largest bank, has seen its net profit grow by almost a tenth in 2024. This growth is largely due to the bank's increased activity in the Russian market, Reuters reports.
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Profit growth and performance of the Russian division
OTP Bank's net profit in 2024 exceeded USD 2.9 billion (HUF 1 trillion). The bank's Russian division's profit grew by more than 40%, reaching USD 372 million (HUF 137 billion).
Growth of lending and deposits in Russia
The volume of loans issued to OTP Bank's retail customers in Russia increased by more than 80%, exceeding $2.9 billion (1.053 trillion forints). The total volume of customer deposits, mainly corporate, increased by more than 70%, reaching $5.1 billion (1.882 trillion forints).
Attracting deposits from European companies
Deputy CEO of OTP Bank Laszlo Bencsik noted that the bank is also seeing an increase in the volume of deposits from European companies continuing to do business in Russia.
“Many of these companies transfer their funds from Russian banks, which are increasingly subject to sanctions, and turn to us,” Bencik explained.
Compliance with sanctions and restrictions on activities
At the same time, Bencik stressed that OTP Bank adheres to the sanctions imposed by the West against Russia. The bank has stopped lending to corporate clients, does not carry out transactions in US dollars and takes precautions when processing payments in euros.
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