213 Overview Presentation
OTP Group OTP Bank is the largest retail bank in Hungary and one of the largest financial groups in Central and Eastern Europe OTP Bank provides high quality financial solutions to meet the needs of nearly 11,9 million customers through almost 15 branches, agent networks and state-of the art electronic channels Operates in 8 countries in the CEE region via its subsidiaries: in Bulgaria - DSK Bank in Croatia - OTP Banka Hrvatska in Romania - OTP Bank Romania in Serbia - OTP Banka Srbija in Slovakia - OTP Banka Slovensko in Ukraine - JSC OTP Bank in Montenegro - Crnogorska komercijalna banka in Russia - OAO OTP Bank OTP Bank Hungary long-term ratings in FC: Moody s: Ba2 (as of 15.11.213)
Key Events 26 up to date Changes in ownership, business reengineering 1999 to 25 Business expansion 212: February - Top management shift and changing of Business Strategy 5% increase of the market share in Consumer Lending in December 211: OTP Bank is the most active participating bank in the EBRD s TFP in Ukraine Best Private Bank in Central and Eastern Europe by The Banker Magazine 29: July - Closed Joint Stock Company OTP Bank changed its legal name to Public Joint Stock Company OTP Bank December - OTP Factoring 1% owned by OTP Factoring, Hungary was established 28: LLC OTP Leasing and LLC OTP Pension were established 27: Asset Management Company OTP Capital was established 26: OTP BANK PLC, Hungary became 1% owner of Raiffeisenbank Ukraine renamed as CJSC OTP Bank in November 25: Finalized the first deal with ECA cover Began to issue Visa International electronic cards 22: Became a member of EBRD TFP Program Started developing its Regional Directorate network 21: Raiffeisenbank Ukraine joined Top-1 largest banks in Ukraine Started issuing Eurocard / MasterCard cards 1994 to 1998 The beginning: from the Representative Office to Subsidiary Bank March 1998: Raiffeisenbank Ukraine was established as a subsidiary bank of Raiffeisen Zentralbank Oesterreich AG. 1994: The history of the Bank began when Raiffeisen Group established a representative office in Ukraine.
Directorate Network: OTP Bank is present in every region of Ukraine Lutsk Rivne Kyiv Chernigiv Sumy Zhytomyr Lviv Khmelnytsky Poltava Ternopil Kharkiv Lugansk Uzhgorod Ivano Frankivsk Vinnytsya Cherkasy Kirovograd Dnipropetrovsk Chernivtsi 141outlets 6 Regional Directorates 6 Re Regional Directorates Odesa Mykolaiv Kherson Zaporizhzhya Donetsk Simferopol 6 Regional Directorates * as of September, 213, internal data 4
MARKET SHARE Bank No Assets Share, % No Capital Share, % No Corporate deposits Share, % No Retail deposits Share, % PrivatBank 1 22551.28 21.983 1 22137.64 14.73 1 25566.448 14.397 1 138.364 29.91 Oschadbank 2 92332.86 1.21 2 19177.782 12.761 5 8266.662 4.655 2 35254.48 1.54 Delta Bank 3 544.87 5.865 8 5128.152 3.412 4 9977.98 5.619 3 23388.547 6.993 Raiffeisen Bank Aval 4 4483.82 4.863 3 92.979 5.991 2 13343.211 7.514 4 15491.671 4.632 Prominvestbank 5 4236.69 4.367 5 643.391 4.21 7 618.761 3.389 9 7978.1 2.385 Ukrsotsbank 6 37328.52 4.51 4 7848.567 5.223 6 793.426 3.994 6 1258.491 3.65 FUIB 7 34959.8 3.794 9 59.762 3.387 3 11238.29 6.328 7 11227.224 3.357 Sberbank of Rusia 8 33571.75 3.644 12 3715.242 2.472 9 5361.875 3.19 5 1268.966 3.77 Nadra Bank 9 29346. 3.185 7 5459.282 3.633 8 5429.488 3.57 13 547.541 1.617 VTB Bank 1 2989.3 3.157 1 4997.58 3.325 12 519.486 2.877 1 7171.955 2.144 Alfa Bank 11 28496.25 3.93 6 5797.778 3.858 1 5287.13 2.977 8 8768.8 2.622 OTP Bank 12 18555.85 2.14 11 4213.22 2.83 14 4471.74 2.518 12 5448.638 1.629 Brokbusinessbank 13 1769.79 1.92 14 2957.254 1.968 11 5218.971 2.939 11 666.316 1.975 Pivdenny 14 1214.36 1.314 2 153.821 1.19 2 2253.28 1.269 16 438.488 1.288 UAH mio, AUB data as of 1.1.213 5
MARKET SHARE KEY HIGHLIGHTS, as of 1.1.213 Market Share by Segment, as of 1.1.213, % Total Assets: USD 2,32 billion (#12 according to AUB) Gross customer loans: USD 1.82 billion(#12 according to AUB) Retail Loans: USD 872 million (#6 according to AUB) Corporate Loans USD1.16 billion (#15 according to AUB) Corporate Deposits USD 559 million (#14 according to AUB) 611 268 retail clients 65 625 SME clients 11 22 corporate clients 5.5 5 4.5 4 3.5 3 2.5 2 1.5 1.5 2.1 Net Assets 2.67 Total Loans 5.2 Retail Loans 1.8 Corporate Loans 2.5 Corporate Deposits AUB data as of 1.1. 213. Internal data. AUB data as of 1.1.213 6
Customer Deposits in USD mln, equiv. 437 4 Individuals Corporate 492 537 482 45 523 368 463 253 15 232 385 519 379 49 493 56 186 693 Source: Financial Report as of 3Q 213 Attractive account packages tailored to clients needs
Loan Portfolio Breakdowns Loan Portfolio (OBU+OFU) breakdown by Customer Segment as of 3.9.213 Corporate 44% Retail 29% SME 15% Cash, POS, X- sale cards 12% Loan Portfolio (OBU+OFU) breakdown by currency Loan Portfolio (OBU+OFU) breakdown by Industry as of 3.9.213 Loans to individuals 53% Real estate 7% Trade 22% Manufactu ring 13% Other 3% Agriculture 2% Corporate LCY: 46% SME LCY: 19% PI+POS+ Cash+Xsale cards LCY: 5% FCY: 54% FCY: 81% FCY: 5% Source: Internal data 8
TRADE FINANCE International TF Transactions Volume, US$ mln 167 157 18 16 14 12 1 8 6 4 2 USA 11% 12 Geography of operations 75 21 211 212 213 (3Q) CIS countries 14% Africa.16% Asia 4% Documentary Business: TF limits from IFIs and top-ranked banks Participant of: EBRD Trade Facilitation Program (1st place in Ukraine on volumes in 212/213) IFC GTFP Program Well-diversified TF portfolio The basic export products: Sunflower Seed Oil and Agricultural products; Metals; Fertilizers; Industrial equipment; FMCG; Timber The basic import products: Equipment for Mining and Manufacturing; Petroleum Products, FMCG Over 5% of Ukrainian market share in L/Cs TF Experts dedicated to certain sector of industry Successful projects in different economic sectors EU 35%
Retail Customers 7 6 5 4 3 2 1 127 877 Number of clients - Individuals 32 598 21 17 179 476 368 757 442 938 516 74 51674 6889 25 26 27 28 29 21 211 212 3Q213 Wide range of Retail products and services: Personal accounts Term and demand deposits Mortgages Car loans Consumer loans POS-loans Personal loans Bancassurance services Credit and debit cards Safe deposit boxes Custody services Private banking facilities Money transfers Investment funds Retail Customers - 42% of Bank s Gross Income as of 3Q213) Source: OTP Bank internal data 1
Strong Position in Corporate Banking Loans to Corporates, US$ mln 1764 1634 1561 1477 1437 1256 984 882 25 26 27 28 29 21 211 212 3Q213 973 Corporate products: Cash management services Term, saving deposits Interest bearing current accounts Corporate cards Structured TF Lines of credit for working capital Documentary instruments Custody services Project finance Source: Financial Report as of 3Q213 11
Treasury operations 12 1 FOREX operations volume, eq. bn USD 1.8 1.5 1 9 6 5 Operations with securities, bn UAH 56.24 8 8 8 4 42.63 6 5 3 3.88 4 2 22.5 2 27 28 29 21 211 212 213 1 5.37 6.72 1.9 27 28 29 21 211 212 213 o One of the market-makers on the Ukrainian Interbank Foreign Exchange Market o Co-operation with more that 1 Ukrainian banks, 4 foreign banks and international banking groups, the Ukrainian Interbank Foreign Exchange Market and the First Stock Trading System, Reuter-Dealing and Bloomberg o o o o o o o Bonds issuing and trading Brokerage services Underwriting Portfolio management REPO operations Shareholder of the Ukrainian securities Depositary Source:internal data as of 1.1.213 12
Main balance figures 5 4 3 2 1 853 1 455 2 26 Assets, USD mln 4 489 3 788 3 618 3 139 2 964 2 696 2 322 4 3 2 1 1 175 1 918 Loan portfolio (after provisioning), USD mln 3 964 3 72 3 9 2 339 2 31 2 22 1 692 24 25 26 27 28 29 21 211 2123Q213 25 26 27 28 29 21 211 2123Q213 Capital Adequacy, % Tier 1 ratio, % Share Capital, USD mln Total Equity, USD mln 35 3 25 2 15 1 5 31 3 28 26 23 19 16 16 17 14 14 15 13 13 11 12 13 11 25 26 27 28 29 21 211 212 3Q213 6 5 4 3 2 1 62 85 227 183 17165 17 38 271 424 485 48 465 481 361 421 363 366 361 359 24 25 26 27 28 29 21 211 212 3Q 213 Source: IFRS accounts 13
Recent Developments OTP Bank JSC ended the third quarter of 213 with a net profit of UAH 84.55 million according to the National Accounting Standards. The Bank s net interest income at the end of the year reached UAH 1.4 billion, while commissions grew to UAH 111.1 million. The Bank s assets (with the reserves taken into account) reduced slightly to UAH 18.6 billion. The Bank s total loan portfolio somewhat contracted to UAH 13.52 billion, wherein loans to legal entities accounted for UAH 7.77 billion, and loans to individuals comprised UAH 5.75 billion. The Bank s total liabilities in the third quarter of 213 declined to UAH 15.2 billion compared to UAH 16.8 billion at the end of 212. Still, total deposit portfolio grew to UAH 9.2 billion from UAH 8.97 billion. Specifically, the corporate deposits increased to UAH 3.7 billion, while funds deposited by individuals were up to UAH 5.5 billion. The Bank s equity capital was UAH 3.96 billion as of the end of the 3Q 213 (against the normative requirement of UAH 12 million). Regulatory capital adequacy ratio established at the level of 19.47% (exceeding the regulatory normative of 1%).