From Ukraine, they feel pressure from managers at different levels, as well as from investors, to leave the Russian market or to sell OTP there, but they do not act under pressure, said Sándor Csányi, the President and CEO of OTP Bank Plc. InfoRádió's Aréna program on Wednesday.
"The extent of the budget adjustment depends on many things, but mostly on when the Russian-Ukrainian war will end and on whether an agreement can be reached on EU funds," Index quoted Sándor Csányi's interview.
The president and CEO of OTP Bank Nyrt. said: "if the war ends soon and the EU subsidies arrive in Hungary, then an adjustment of 500 billion can be expected.
If this is not met, the amount of the adjustment may reach 1,700 billion in order to maintain the 4.9 percent deficit."
In 2022, inflation of 9 percent and economic growth of 3.5 percent are expected.
Sándor Csányi/Source: MLSZ
Sándor Csányi said that they expect 9 percent inflation and 3.5 percent economic growth this year. According to him, the forint exchange rate will stabilize between 365 and 383-390. "Where you stand depends on when the war ends," he believed.
According to him, investments in Hungary increased last year, and the same is expected this year. The main growth driver is exports, in which car production accounts for a significant share. However, in his opinion, this industry has not been able to perform as well as it is capable of.
According to Sándor Csányi, the market share, which is roughly around 20 percent, has increased significantly in recent years and is mostly due to business loans. He added:
the quality of the loans is also very good. He also called the Széchenyi card, chocolate and village chocolate successful.
According to him, "these also serve growth and are good for the population and the bank. These are all government loan products," he added.
Regarding the year 2022, Sándor Csányi said: he believes that the growth in corporate credit will continue. In the case of mortgage loans, the growth rate is expected to decrease.
Regarding the Russian-Ukrainian war, he noted that they are directly affected, because there are OTP Banks in both countries. According to him, there is nearly one billion euros worth of capital in these two countries. In Ukraine, 60-70 of the 80 branches are open continuously. Agricultural lending has increased in the country.
As he said, OTP has more than HUF 3,000 billion in government securities, which yield between 2-2.5 percent. The loan-to-deposit ratio is 75 percent. According to him, the responsible banking behavior in this case is to try to steer customers towards forms that provide more returns.
Sándor Csányi also mentioned in the conversation: ruble and hryvnia deposits are constantly growing in Russia and Ukraine, which indicates that there is a lot of trust in the OTP. According to him, if they had to bear significant losses in these countries, they would be able to do so, because these companies are very well capitalized.
Source and full article: mandiner.hu
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