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BRIEF-OTP Bank CEO: sees acquisitions in CEE, Ukraine, Russia
March 21, 2017 / 1:26 PM / 6 months ago

BRIEF-OTP Bank CEO: sees acquisitions in CEE, Ukraine, Russia

March 21 (Reuters) - OTP Bank Nyrt CEO Sandor Csanyi says:

* Doing due diligence on one asset acquisition in Romania

* Wants to bid for Bancpost once Greece’s Eurobank sells it

* Expects consolidation among Central European banks in next 1-2 yrs

* Sees resulting acquisition opportunities in Serbia, Romania, Slovakia

* OTP wants to increase market share in Ukraine

* Sees organic growth opportunity in Ukraine

* In preliminary talks about one acquisition, not Prominvestbank

* Did not make offer for Prominvestbank but will look at it once it comes up for sale

* Sees no immediate potential takeover target in Russia

* Would like to buy suitable banks if they come up for sale in Russia

* Russian online operation Touch Bank successful enough for wider roll-out

* Touch Bank could be template to enter new markets in Europe, ex-USSR

* Asia is still on OTP’s expansion horizon

* We have ample capital to expand, close to EUR 1 bln in cash

* We could tap markets if promising acquisition targets beyond OTP’s cash means come up

* We have until 2018 annual general meeting to decide how to decrease Tier 1 capital closer to goal of 12.5 percent from current 18.5 percent

* Reduction of Tier 1 could entail investment, share buy-back, dividend

* Talks on acquiring an important Montenegrin bank nearly complete

* At 8,300 forints share price higher than European peers’ on price-to-book-value basis with 1.5 P/BV

* ROE, profitability make current OTP share price “realistic”

* National Bank of Hungary plans to limit mortgage margin to 300 bps would decrease OTP’s annual profit by 10 billion forints

* 250-300 bps mortgage margin hurts banks’ safe operations

* 400-450 bps is the level that “serves everyone’s interests”

* Overly aggressive competition on pricing among banks could pose systemic risk

* does not exclude possibility of a stock split, issue is not on agenda now

* Does not plan to retire

* Major changes in OTP management structure likely in 2-3 yrs with financial technology advances, digital banking Further company coverage: (Reporting by Marton Dunai)

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