OTP doubles network, budgets losses

OTP, the biggest Hungarian bank, intends to speed up its plans to develop activities on the Romanian retail banking market, by setting up 39 new branches by the end of the year, reports Reuters. Investments will, however, put pressure on the bank”s results, and the group is expecting the local branch to see losses for a few years. “We will set up 39 new branches, with the total number to stand at about 70. Our final objective is for Romanian branches to reach 200,” stated the chairman and chief executive of the bank, Sandor Csanyi in a press conference. Csanyi added that OTP had not given up its plans to make acquisitions in Romania, but that it was currently focusing on its organic development. The Hungarian bank is interested in taking over Casa de Economii si Consemnatiuni (The Romanian Savings Bank – CEC), but the privatisation process was put off on several occasions. ZF