150m-euro investments for OTP

It”s been full steam ahead for OTP Bank Romania over the last two months: it has expanded its network by 12 branches and the bank”s retail credit portfolio has reached 6 million euros.

Almost a year and a half from its entry onto the market, Hungary”s largest banking group”s investments in Romania stand at approximately 150 million euros, accounting for the amount paid for RoBank and the insurance company Ceccar Romas, capital increases and investments made for the launch of the retail segment and the reorganisation of the bank.

This autumn, OTP Bank started to apply a fast-paced development strategy for its network of branches, totalling 27 at the moment. Another 43 are slated for opening in 2006, bringing the total to 70.

The expansion has focused on Bucharest since October 21, with the capital seeing four new branches opened, as well as on Transylvania, with branches in Miercurea Ciuc, Sfantu Gheorghe, Odorheiu Secuiesc, Alba Iulia, Oradea and Satu Mare.

The bank is naturally interested in gaining ethnic Magyars as clients, offering forint-denominated personal loans for 16% a year. At the same time OTP services are also available in Pitesti and Bacau.

“We achieved our goals for the organic development planned for this year,” stated Laszlo Diosi, deputy general manager and head of the retail division of OTP Bank Romania.

He believes they have created the basis for attaining a 4-5% market share in the medium term.

Early in November, the bank launched its first retail products, namely personal loans, personal loans with real estate security, housing loans, overdrafts, banking deposits and current accounts.

Laszlo Diosi says that loan contracts worth over 6 million euros have been concluded until now.

As for loans, OTP came up with novel product: credits in Swiss francs for the lowest nominal interests – 7.5% for personal loans, 7% for personal loans with real estate security and 6.5% for housing loans.