Posted by: 13 june, 2023
As the first foreign bank to participate in the privatization of the Uzbek banking sector, OTP Bank became the majority owner of the country’s fifth largest financial service provider, Ipoteka Bank. Today, the first step of the acquisition was completed: OTP Bank purchased 75% of the shares held by the Ministry of Economy and Finance of the Republic of Uzbekistan, the remaining 25% will be purchased in three years from now. Entering the Uzbek banking market opens a new chapter in the history of OTP Group, since Uzbekistan is the first country in the Central Asian region where the Group extends its footprint. Ipoteka Bank holds 7.6 percent market share in terms of assets, and a retail clientele of about 1.5 million. Customers of Ipoteka Bank do not need to do anything in connection with the ownership transfer.
Budapest, 13 June 2023 – OTP Bank had negotiated with the Uzbek government since the end of 2020 on possibilities to participate in the privatization of the Uzbek banking sector. In December 2022, the parties signed the purchase and sale contract in Tashkent on the terms of OTP Bank’s purchasing 100% (cca. 98% total shareholding) of the shares of the country’s fifth largest financial service provider, Ipoteka Bank held by the Ministry of Economy and Finance of the Republic of Uzbekistan. Today, the first financial transaction was successfully closed, consequently, OTP Bank became the majority shareholder of Ipoteka Bank by acquiring a 73.71% shareholding, and became indirect shareholder of its wholly-owned subsidiaries, Ipoteka Leasing engaged in financial leasing and Imkon-Sugurta offering insurance service. The International Finance Corporation (IFC) has agreed to continue providing ongoing financing and transformation support to Ipoteka Bank in cooperation with OTP Bank.
“Being the first foreign actor to take part in the privatization of the Uzbek banking market is a huge responsibility and a great opportunity for OTP Group. Given the determined political and economic reforms performed in the country show an exemplary commitment to an increasingly open and competitive market economy. The achievements in digitalisation and the ongoing infrastructure investments provide an excellent basis for the Uzbek economy, and Ipoteka Bank as a major player, to achieve dynamic and sustainable growth in the coming years and decades. Uzbekistan is the first country we enter in the Central Asian region, therefore, we rely vastly on the successful strategy that led to a market-leading mortgage lending business and outstanding high-quality customer service”, stated Sándor Csányi, Chairman and CEO of OTP Bank. “We strongly believe that connecting Ipoteka Bank’s local experience to OTP Group’s knowledge accumulated through 23 acquisitions in 11 countries will further strengthen the outstanding position of the bank. Our aim is to offer our customers a full range of financial services in both the retail and corporate segments through an extensive network of branches and high-quality digital services”, he added.
“Entering to the local market of such a large foreign bank as OTP Bank will contribute to strengthening of competition, improving standards of corporate governance and improving the quality of banking services”, the Minister of Economy and Finance of the Republic of Uzbekistan Sherzod Kudbiyev stated.
“We are all excited and looking forward to the opportunities that OTP Group can bring to the bank’s clients, employees and other stakeholders. Since 2019 Ipoteka-bank has been going through continuous transformation resulting in stable growth and attainment of strong market positions among local banks. This acquisition should definitely become another significant milestone in our history and there is no doubt that as a member of the OTP Bank Group, we will able to deliver even higher customer service quality standards and strive for leadership in the banking sector through access to new digital technologies, products and management expertise”, said Elyor Inomjonov, Ipoteka Bank’s Executive Board Chairman.
With the transaction closed, the aim is to conduct a successful alignment period, which starts today: OTP Group and Ipoteka Bank together are going to carefully examine various aspects of business operations, networks, systems, products, and innovation to offer new opportunities for clients, employees, partners as well as communities. Customers of Ipoteka Bank do not need to do anything in connection with the ownership transfer, and they will be informed in due course on the changes connected to the alignment process.
About Ipoteka Bank
Ipoteka Bank has a 7.6% market share in terms of assets, holds therefore the position of the fifth largest bank of Uzbekistan. In addition to having a substantial corporate clientele, the number of its retail clients reaches 1.5 million, and it operates through 39 branches as regional centres as well as more than 200 customer service points. The assets of the bank grew over the past three years at an annual rate of 20% on average in the loan portfolio and 24% in the deposit portfolio, while the bank’s profit after tax has also improved continuously in recent years.
About OTP Group
OTP Group is the fastest growing and one of the leading banking groups in the Central and Eastern European region, with outstanding profitability and a stable capital and liquidity position. With more than 41,000 employees in now 12 countries of the CEE and Central Asian region, the Group provides universal financial services to more than 17.5 million customers. As the most active consolidator in the banking sector of the Central and Eastern European region, the Group has successfully acquired and integrated 23 banks since the early 2000s. Currently, the Bank is a market leader in Hungary, Bulgaria, Serbia, Montenegro, and in Slovenia. OTP Group is headquartered in Hungary and has a diversified and transparent ownership structure. The Banking Group has been listed on the Budapest Stock Exchange since 1995.
