OTP Bank has announced a EUR 30m increase of capital of its Romanian subsidiary. As a result, the bank’s core capital will reach EUR 104 m. OTP Bank will increase its stake to 99.99%.
Our view:
The market is well aware of OTP Bank's expansion plans in Romania (100 branches to be opened by the end of 2007 and 200 branches overall) and so an increase in the capital of the subsidiary should have been expected. Therefore, this news should not have any trading impact. With regard to the bank's plans for Romania, investors should take greater interest in newsflow related to the privatisation of CEC Bank, as the deadline for improved bids has been set at October 10.