Kyiv-based RBUA was founded on 2 March 1998 as the subsidiary of Raiffeisen International Bank-Holding AG, which is majority-owned by Raiffeisen Zentralbank Österreich AG. Based on its end-2005 total assets of EUR 1.2 billion, RBUA has a market share of 3.6% and is Ukraine’s seventh largest bank. The bank had shareholders’ equity capital of EUR 139 million and pre-tax profit of EUR 39.7 million at the end of last year.
The bank had around 1,900 large corporate and 3,600 SME clients as of end 2005. Its market share was 3.6% and 4.0% in corporate deposits and corporate loans, respectively, while the bank’s corporate loans totalled EUR 690 million. RBUA’s retail deposits totalled EUR 173 million at the end of last year, implying a market share of 1.6%. Its retail loans totalled EUR 302 million, implying an over 5% market share. The bank, which has some 1,700 employees, serves its clients via 42 branches and 17 representative offices as per end of April 2006.
The closing of the transaction and the transfer of the purchase price will happen in possession of the necessary governmental approvals, expectedly in September 2006. After closing, the new owner will focus on the integration and transformation of the bank, and will start to coordinate the IT systems and develop the products and services.
Following the acquisition of Raiffeisenbank Ukraine, OTP Bank wants to further strengthen its positions via acquisitions, besides organic growth in Ukraine, where 166 banks operate according to the most recent data of the National Bank of Ukraine. At the end of last year Ukraine’s banking sector’s aggregated total assets/GDP ratio was around 50%, which allows a significant growth potential. OTP Bank’s aim in Ukraine – with Ukraine rated Ba3 with stable outlook by Moody’s – is to provide full range of financial services to both retail and corporate clients. In order to achieve this, OTP Bank plans to build a banking group, just like in other countries where it is present.
OTP Bank is a retail-focused universal bank. Together with the financial services providers it owns, OTP Bank Group is Hungary’s leading financial group. At the end of 2005 it had a market share of 24.1% based on total assets on Hungary’s banking market of 34 players. OTP Bank’s IFRS-based audited consolidated total assets was HUF 5,215.9 billion (EUR 19.83 bn*), its shareholders’ equity was HUF 547.5 billion (EUR 2.08 bn*) and its after-tax profit was HUF 158.3 billion (EUR 601.8 m*) on 31 December, 2005. OTP Bank’s consolidated return on average assets (ROAA) and return on average equity (ROAE) were 3.38% and 32.3%, respectively, at the end of last year.
The banking group is the market leader in retail and municipal lending and deposits, fund management, pension funds’ assets management, the number of bank cards issued, mortgage banking and car financing. It is also a dominant player in corporate lending, project financing, SME lending and deposits as well as insurance services.
OTP Bank is also a key player in Central and Eastern Europe’s banking market via its foreign subsidiaries in Bulgaria, Croatia, Romania, Serbia and Slovakia. OTP Bank Group currently provides services to nearly 10 million clients in six countries. OTP Bank is rated A1 by Moody’s Investors Service. OTP Bank’s shares trade on the Budapest Stock Exchange, while its Global Depositary Receipts (GDR) trade on the Luxembourg Stock Exchange and the SEAQ International in London.
* Calculated with National Bank of Hungary’s official HUF/EUR exchange rate of 263.06 on 1 June, 2006.
Raiffeisen International operates one of the leading banking networks in CEE with subsidiary banks and leasing companies in 16 markets. More than 10 million customers are attended through approximately 2,700 business outlets. In seven markets, the respective Network Bank ranks among the three largest local banks. Representative offices in Lithuania and Moldova complement the Group’s presence in the region. Raiffeisen International is a fully consolidated subsidiary of Raiffeisen Zentralbank Österreich AG (RZB), which owns 70 per cent of the common stock. The remaining 30 per cent is free float, the shares are traded on the Vienna Stock Exchange. RZB is a leading corporate and investment bank in Austria and the central institution of the Austrian Raiffeisen Banking Group, the country’s largest banking group.
Raiffeisen International’s balance-sheet total amounted to € 41.9 billion at the end of the first quarter 2006. Consolidated profit (after minorities) increased by 34 per cent to € 124 million, compared with the first quarter 2005.
