Hungary’s largest lender, OTP Bank, increased its business in Russia in 2024, recording a 40% surge in profits from its Russian unit despite growing pressure on European banks to reduce ties with Moscow.
Reuters reports that the bank reported a net profit of over 1 trillion forints ($2.9 billion) for 2024, with its Russian operations contributing 137 billion forints ($372 million). Retail loans in Russia grew by more than 80% to 1.053 trillion forints, while corporate deposits rose 70% to 1.882 trillion forints. OTP’s core Hungarian business also saw a 16% rise in profits, excluding one-off items.
OTP’s continued profits in Russia contrast with other European lenders, such as Austria’s Raiffeisen Bank International and Italy’s UniCredit, which faced mounting pressure from the European Central Bank (ECB) and US sanctions authorities to reduce Russian exposure. However, OTP is not under ECB oversight, allowing it to continue its operations despite criticism.
Hungary has maintained close economic relations with Russia, relying heavily on Russian oil and gas imports. Prime Minister Viktor Orbán’s government has resisted EU efforts to isolate Moscow economically, further enabling OTP’s growth in the Russian market.
According to OTP Deputy CEO Laszlo Bencsik, many European companies still operating in Russia have shifted their deposits to OTP as Western sanctions increasingly target Russian banks.
Bencsik added that OTP places these deposits with Russia’s central bank, generating “a substantial margin.” The bank, while insisting it complies with Western-led sanctions, has stopped corporate lending, refrains from processing dollar transactions, and takes additional precautions when handling euro payments.
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