OTP Group in Serbia: First on the market in Retail and Corporate Lending

Business Results for 2020

OTP Group in Serbia, including Vojvođanska banka and OTP banka Srbija, has realised a 15% annual loan growth, which is by more than EUR 500 million and demonstrates the Group’s commitment to the market in Serbia. At end-2020, the total net loans of both banks stood at EUR 3.7 billion, thus taking a market share over 17%. Vojvođanska banka and OTP banka are currently under the integration process which will last until May 2021, after which they will continue operations under the same name, OTP banka Srbija. Thanks to last year’s results and increased market share in all segments, the new integrated bank will be the first in Serbia in terms of market share in the loan segment.

OTP banka Serbia

“Last year we faced a number of challenges in which we succeeded, not only in maintaining profitable operations but also in enhancing key aspects of our work. At the same time, we worked on our integration project between the two banks, which we are bringing to an end, thanks to the continuous investment in digital transformation and exceptional commitment of our employees. The pandemic has affected the entire economy in many ways, and we have strived to provide all the necessary support to our clients, which is supported by the fact that we have approved more than EUR 259 million through the guarantee scheme to date. We have increased market share in all segments; at end-2020, the total net loans of both banks stood at EUR 3.7 billion with an annual loan growth of around 15% which is by EUR 500 million more comparing to last year.
OTP banka Srbija will thus be at the top in terms of the loan market share in Serbia. At end-2020, the total net operating revenues amounted to EUR 102 million, while the net result after tax amounted to EUR 22 million”, stated Predrag Mihajlović, President of the Executive Board at OTP banka Srbija and the Executive Sponsor of the OTP banka and Vojvođanska banka integration project.

The high loan growth stems from both business segments, the retail and corporate segment. The segment of retail operations realised an annual growth exceeding 17%, with a 40% strong growth in the production of housing loans on an annual basis and market share in housing loans over 21%, while the market share of cash loans is over 20% with generated market share growth over 100 basis points. In the corporate segment, the annual growth was about 13%, while the market share in this segment is over 16% with a growth of over 50 basis points y-o-y.

Total net operating revenues at end-2020 stood at EUR 102 million, which is an y-o-y increase of about 5.6%, and as a result of good commercial performance and savings on total operating expenses by more than 10% compared to 2019.

OTP Leasing Srbija, a leader in the leasing market of Serbia by production, also operates within OTP Group, as well as OTP Insurance, which through OTP banka provides life insurance services as an insurance representative.

In 2020 a consolidated profit of EUR 742 million was achieved at the level of the entire OTP Group, with a total level of assets of EUR 64 billion and an annual growth of assets of about 6%. RoE at the Group level is 13.0%. The Banking Group is present in 11 countries, including Serbia, with over 20 million clients and more than 36 thousand employees.

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