The Hungarian investor purchased a 75% interest in Ipoteka Bank and became its sole owner. Within three years, the remaining 25% of the shares will be purchased.
Hungarian OTP Bank became the country's fifth largest financial services organisation after becoming the first Western bank to participate in the privatisation of the banking sector in Uzbekistan.
On June 15, OTP Bank purchased 75% of the shares of Ipoteka-Bank, which is controlled by the Ministry of Economy and Finance of Uzbekistan, and the remaining 25% will be purchased within three years.
OTP Group begins operations in Uzbekistan, the first country in the Central Asian region. The group's debut into the Uzbek banking sector marks a new chapter in the company's history. Ipoteka-Bank has a 7.6% asset market share and around 1.5 million retail clients.
On June 13, OTP met with the government of Uzbekistan in Budapest to discuss the prospect of participating in the privatisation of the country's banking sector beginning at the end of 2020. In December 2022, the parties signed a deal in Tashkent to acquire 100% of the shares of the country's fifth largest financial institution, Ipoteka Bank, which is owned by the Ministry of Economy and Finance of Uzbekistan (the ministry's participation in the bank is around 98%).
The financial transaction was concluded successfully at the Tashkent event, and OTP Bank became the legal supervisory body of Ipoteka-Bank. As a result, OTP Bank became the principal shareholder of Ipoteka-Bank with a 73.41% interest, as well as an indirect owner of the bank's businesses - Ipoteka-Leasing, which provides financial leasing services, and Imkon-Sugurta, which provides insurance.
"The entry of a very large institutional investor from Europe into Uzbekistan's banking market is a significant factor in the development of our economy. A significant number of steps have been made to achieve this privatisation. We are experiencing historic occurrences," stated First Deputy Minister of Economy and Finance Ilkhom Norkulov.
"This transaction brings in a new era in the bank's operations. We will grow to be the largest bank in Central Asia. So far, we've bought 23 banks from 11 different nations. Our assets have increased in value from $300mn to $16bn. We direct the majority of the dividend profit on the expansion of our bank's activities and increasing the efficiency of our job. I'd like to thank the government of Uzbekistan for their cooperation," stated Laszlo Wolf, Deputy Director of OTP Bank.
Following the transaction, the next goal is to complete the integration process successfully. OTP Group and Ipoteka-Bank collaborate to thoroughly investigate many elements of business operations, branch networks, systems, products, and innovations in order to provide new chances to customers, workers, and partners. This transaction (related to the transfer of ownership) requires no action from Ipoteka-Bank clients, and they will be quickly informed of developments connected to integration processes.
Ipoteka-Bank is Uzbekistan's fifth largest bank, with a 7.6% market share in terms of assets. The bank has 1.5mn retail customers in addition to significant corporate clients and operates through a network of 39 branches and more than 200 customer care centers.
Over the last three years, the bank's assets have expanded due to an average annual growth of 20% in the loan portfolio and 24% in the deposit portfolio, while its net profit has continuously increased.
Comments (0)