2014 very successful for OTP banka

In 2014, OTP banka continued to strengthen its market shares in all strategic segments. With the successful integration of BPC and fully covered acquisition costs, OTP banka recorded profit.

Along with successful integration of Banco Popolare Croatia, OTP banka ended 2014 with HRK 155.2 million net profit. Banking business operations exceeded planned values in the segment of operating income and lower operating costs.

Income from interest in the previous year was under the negative impact of the reduction of interest rates on retail loans, conditioned by the drop of the reference interest rate, as well as the general negative interest rates trend to corporate loans and financial assets (securities and banking deposits). Largely, this decline was compensated by savings on interest costs by reducing interest rates on deposits and with resource optimization, so net income from interest decrease compared to the previous year was at 3.2 percent.

OTP banka assets in 2014 increased from HRK 13.7 to HRK 15.8 billion, or by 16 percent, of which HRK 1.9 billion refers to the merged company. Despite the fact that the majority of the market share increase as well as loan and deposit volume growth can be ascribed to the bank merger when comparing 2013 and 2014, it should be mentioned that OTP banka recorded higher growth rates in credit activities during the entire year when compared with the system level, as well as positive trends in strengthening its market position. This was especially pronounced in the area of retail crediting, in housing and other loans.

The share of housing loans after the merger reached 5.40 percent of the total market. On December 31, 2014 market share in the segment of other retail loans amounted to 6.21 percent. OTP banka recorded market share increase in corporate crediting sector; in 2013 it had 2.72 percent, while at the end of 2014 it reached 3.10 percent of the market. When it comes to foreign citizens' deposits, at the end of 2014 the bank took 5.77 percent of the market share. On the last day of 2014 market share measured by total assets amounted to 3.93 percent.

Last year was marked significantly by BPC integration process which was performed in record period of seven months. Today, OTP banka operates through the network of 112 branches and over 250 ATMs and now has operations in nine new cities. It employs 1,125 employees, which is 11 percent more than at this time last year.

OTP banka also published its first Sustainability Report, which includes data for 2012 and 2013. The report is made in accordance with the Global Reporting Initiative latest guidelines. With this publication OTP banka became the first bank in Croatia and one of the first organizations in Croatia with published Sustainability Report according to G4 guidelines.

And in 2014 OTP banka awarded organizations conducting projects important for raising the quality of life of their communities. As a part of its program "Green Light for ... Better Society” OTP banka organized public donations tender within which it selected 52 projects granted with a total HRK 400,000. In cooperation with partners and local communities, in 2014 the bank allocated scholarships worth more than HRK 500,000 to students with low income status.

In 2014 OTP banka was declared the national champion in the category Employer of the Year by the European Business Awards.