Treasury Sales Team

Tamás Puskás Edit Tarsoly Kovácsné +36 1 288 7558 +36 1 288 7541 [email protected] [email protected]

Márton Meichl Gábor Pozsgai +36 1 288 7543 +36 1 288 7554 [email protected] [email protected]

János Mladoniczki Attila Keresztyén +36 1 288 7551 +36 1 288 7552 [email protected] [email protected]

Attila Torma Zsombor Zölde +36 1 288 7544 +36 1 288 7572 [email protected] [email protected]

Szilvia Lovas Tibor Papp +36 1 288 7545 +36 1 288 7546 [email protected] [email protected]

Ákos Fekete Ákos Szűcs Örkény +36 1 288 7553 +36 1 288 7547 [email protected] [email protected]

Frigyes Soós Edit Kovács Gyimóti +36 1 288 7571 +36 1 288 7542 [email protected] [email protected]

Ágnes Mikola Csinszka Kis-Böndi +36 1 288 7556 +36 1 288 7544 [email protected] [email protected]

Dávid Mustyák +36 1 288 7556 [email protected]

Daily Report –

DAILY REPORT – HUNGARY 12 APRIL 2016

Summary  The BUX slipped 0.9% yesterday despite the optimism in Western Europe.

 Long-term government bond yields fell sharply in Monday’s trading.  Trading in a narrow range, the HUF firmed 0.2% yesterday.

Despite the slight optimism on Western Europe’s stock markets, the underperformed yesterday; the BUX closed 0.9% lower, with the turnover 25% below the year-to-date average. The strongest names in the BUX were (+2.0%) and GSPark (+1.3%). Among blue chips, only Richter could eke out a small gain (+0.1%), while Mol slid 1.7%, OTP dropped 1.4%, and MTelekom shed 0.2%.

On the secondary market of government bonds, short-term yields stayed flat. The yields on 5Y and longer maturities went 5-8 basis points down. Today the ÁKK will auction 3M discount treasury bills; putting up for sale the usual amount, HUF 40 billion.

The positive sentiment helped the forint’s market; by noon, the Hungarian currency worked off the losses made earlier in the morning. The persisting forint firming pushed the EUR/HUF to 311.33; the pair closed at 311.45. A similar rate of strengthening led the CHF/HUF lower and drove the USD/HUF 0.3% down.

According to Reuters’ sources, the EBRD considers participating in mergers and acquisitions that support the consolidation of Hungary’s banking system if Hungary sticks to the conditions laid down in the 2015-dated memorandum of understanding. The EBRD is also prepared to grant long-term direct forint financing to banks (through bond issuance, mortgage-backed financing, and other securitized products), and it is also seeking opportunities in various sectors, to solve the problem of non-performing loans.

Hungary will not publish important macroeconomic data today.

Source: Reuters, OTP Research Source: Reuters, OTP Research

2 WWW.OTPRESEARCH.COM DAILY REPORT – HUNGARY 12 APRIL 2016

Chief Economist Fundamental Analyst Gergely Tardos Orsolya Rátkai [email protected] [email protected] +36 1 374 7273 +36 1 374 7270

Disclaimer

OTP Bank Plc. does not intend to present this document as an objective or independent explanation of the matters contained therein. This document a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and b) is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This communication does not contain a comprehensive analysis of the described issues. This material is only for information purposes and it is not intended as an investment advice, an offer or solicitation for the purchase or sale of any financial instrument, and it does not constitute legal, tax or accounting advice.

Information herein reflects the market situation at the time of writing. It provides only momentary information and may change as market conditions and circumstances develop. Additional information may be available on request. Although the information in this document has been prepared in good faith from sources which OTP Bank believes to be reliable, we do not represent or warrant its accuracy and such information may be incomplete or condensed. Opinions and estimates constitute our judgment and are subject to change without notice. OTP Bank may hold a position or act as market maker in the financial instrument of any issuer discussed herein or act as advisor or lender to such issuer. This document is not intended to provide the basis for any evaluation of the financial instruments discussed herein. In particular, information in this document regarding any issue of new financial instruments should be regarded as indicative, preliminary and for illustrative purposes only, and evaluation of any such financial instruments is made solely on the basis of information contained in the relevant offering circular and pricing supplement when available. OTP Bank does not act as a fiduciary for or an advisor to any prospective purchaser of the financial instruments discussed herein and is not responsible for determining the legality or suitability of an investment in the financial instruments by any prospective purchaser.

Before purchasing or selling financial instruments or engaging investment services, please examine the prospectuses, regulations, terms, agreements, notices, fee letters, and any other relevant documents regarding financial instruments or investment services described herein in order to be capable of making a well-advised investment decision. Please refer to your competent adviser for advice on the risks, fees, taxes, potential losses and any other relevant conditions before you make your investment decision regarding financial instruments or investment services described herein. Any concrete individual decision or investment made based on this publication is the sole risk of the Client and OTP Bank shall not be held responsible for the success of the investment decisions or for attaining the Client's target.

Figures described herein refer to the past and past performance is not a reliable indicator of future results.

OTP Bank Plc. (registered seat: Nádor utca 16., Budapest H-1051, Hungary. Supervisory authority: Magyar Nemzeti Bank (National Bank of Hungary – H-1013 Budapest, Krisztina krt. 39.sz.) PSZÁF licence numbers: III/41.003-22/2002 and E-III/456/2008. For more information, please refer to: https://www.otpbank.hu/portal/hu/Megtakaritas/Ertekpapir/MIFID). All rights reserved. This publication is exclusively owned by OTP Bank Plc., no part of this material can be reproduced, re-used or disseminated without the prior written consent of OTP Bank Plc.

If you received this document from OTP Bank Plc, then it was sent to you with your previous consent. You may withdraw this permission by sending an e-mail to [email protected] or writing a letter addressed to "Research Center” Hungary 1051, Budapest Nádor utca. 21. Please refer to your name and e-mail address in both cases.

3 WWW.OTPRESEARCH.COM