DOCSLIB.ORG

OTP Bank Uses Mobile Alerting to Drive Down Fraud and Increase

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
OTP Bank Uses Mobile Alerting to Drive Down Fraud and Increase HIGHLIGHTS OTP BANK USES MOBILE ALERTING THE CHALLENGE TO DRIVE DOWN OTP Bank faced a growing fraud problem as fraud in Hungary grew to more than FRAUD RATES AND three times the regional average. INCREASE CUSTOMER The bank needed a cost- effective solution that did ENGAGEMENT not require significant investment yet was easy to use by consumers. Card fraud was a growing problem for OTP National Savings and Commercial Bank in Hungary. With fraud THE SOLUTION rates rising, the bank needed a solution that would be OTP implemented effective, easy to implement and attractive to customers. MoneyGuard, created by Spectrum in conjunction with They turned to Spectrum and ACI Worldwide to create a ACI Worldwide. The SMS- mobile alert system that worked in near-real time to stop based system interfaces with ACI’s BASE24® payments fraudulent transactions. switching software and ACI Proactive Risk Manager™ to identify and stop fraudulent transactions. THE RESULTS Within two quarters of implementing MoneyGuard, OTP saw a 90% reduction in card fraud. Fraud attempts overall have declined, even for OTP customers not using A CLEAR AND PRESENT DANGER MoneyGuard, due to a “halo OTP National Savings and Commercial Bank (OTP) is the largest retail bank effect” as fewer criminals in Hungary with over 50% market share and about four million payment target OTP customers. cards. The bank has more than 1,500 branches and 2,000 ATMs in Hungary The mobile alerting service and also has subsidiaries in Ukraine, Russia, Croatia, Bosnia, Herzegovina, has generated €25M in Serbia, Romania, Slovakia and Bulgaria. annual revenues for OTP. By 1999, card payments fraud in Hungary had reached a very high level, more than three times the regional average. OTP urgently required a MoneyGuard solution, but knew that the security of bank card transactions had to be enhanced in a simple and cost-effective way that did not require a large PLACES THE infrastructure change or significant investment, yet was easy to use by CARDHOLDER consumers. OTP Bank approached Spectrum Message Services (Spectrum) to provide a solution. IN THE CENTER With the cooperation of BASE24 experts from ACI Worldwide, Spectrum OF FRAUD created MoneyGuard, a solution which interfaces with BASE24 and BASE24-eps®, to identify a card transaction as it comes into the system, DETECTION, and sends a text message notification based on pre-defined criteria to the BECAUSE cardholder’s mobile phone. The solution is a highly scalable and versatile platform which can be used for a whole range of added-value functions in ULTIMATELY IT IS addition to fraud alerting. OTP connects MoneyGuard directly with ACI’s THE CARDHOLDER BASE24 payments switching software and has also added ACI Proactive Risk Manager™, replacing its own fraud monitoring software. WHO IS IN A POSITION TO CONTROL AND CONFIDENCE IDENTIFY FRAUD Prior to the launch of MoneyGuard, bank customers may not have noticed AND REACT a fraudulent transaction for days or even weeks after the fraud occurred, QUICKLY. until they saw the transaction on a monthly statement. MoneyGuard places the cardholder in the center of fraud detection, because ultimately it is the cardholder who is in a position to identify fraud and react quickly. With MoneyGuard and BASE24 or BASE24-eps, the text is sent within seconds of the authorization message being received by the bank host, and the consumer receives it less than one minute from the time the transaction is initiated. If the transaction is fraudulent, the card holder can immediately contact OTP via phone or by responding to the text message. When used with Proactive Risk Manager, ACI’s fraud management solution, cardholders are notified via SMS based on pre-defined transaction thresholds, or based on rules for transactions that appear risky to the bank. If a transaction is deemed fraudulent, cardholders can automatically request a block on the card via text response so no additional transactions are permitted until the account activity has been verified. When initially introduced under the name of “Card Control”, MoneyGuard customers were mainly cardholders with high credit limits who had more exposure to fraud and therefore were more sensitive to the risk. In the first two years, 20% of OTP’s customers were using MoneyGuard, which represented almost 50% of fraudulent transactions. Over the next four years, MoneyGuard adoption accelerated in tandem with increased mobile phone penetration in Hungary. Word of mouth drove a significant percentage of the growth in adoption as well. In the past five years, growth has continued to accelerate due to the ubiquity of mobile phones, as well as an increased awareness of ID theft and fraud by consumers. Today, OTP has more customers using SMS as a channel than internet banking, with almost 1.5 million customers using MoneyGuard. Message volumes in 2011 were 201 million, or an average of more than 16.5 million messages a month. 2 IMMEDIATE AND SUSTAINED IMPACT After installing MoneyGuard, OTP saw an immediate and impressive reduction in fraud. In the first quarter of service, fraud decreased 70% and within two quarters, it had decreased a total of 90%. OTP’s payment card fraud level is now well below the European average. An additional benefit has been a reduction in card fraud overall, even for customers not using MoneyGuard. There has been a “halo effect” as criminals realize it is not worth the effort to target OTP customers, as a large percentage use MoneyGuard and fraud will be detected almost immediately. From the beginning, OTP recognized the value of mobile alerting and commoditized the offering for its customer base. Revenue streams from these types of services can pay for infrastructure, fund new initiatives and contribute to a bank’s bottom line. On average, the consumer in Hungary pays ¤1-2 per month for the service including transaction text messages and added-value text messages. As a result, OTP has generated a new, highly profitable income stream in excess of ¤25M per annum from MoneyGuard. OTP continues to refine and expand the mobile offerings available to their customers. In addition to fraud alerts, MoneyGuard supports a variety of opt-in SMS transaction notifications based on customer preference. For instance, customers can be alerted whenever a credit, such as a salary deposit has been made, or when a debit occurs, such as a bill payment. They can also send an SMS message to the system to request information about their account, or set up a recurring alert, such as a daily SMS with their account balance. OTP has also recently launched a service which creates single-use passwords to be used when shopping online, reducing the possibility of internet fraud. According to Mr. Ákos Takáts, the deputy CEO and head of the IT and bank operations division of OTP Bank, “Although SMS alerting started as an addition to a fraud monitoring system, MoneyGuard quickly became a highly regarded fundamental customer service of the bank that was associated with its innovative thinking whilst generating significant profit.” MoneyGuard CUSTOMER ADOPTION OVER THE PAST 10 YEARS 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 0 500,000 1,000,000 1,500,000 Number of users 3 HOW IT WORKS At OTP Bank, the customer must have either a bank account with a payment card or a card account using their OTPdirekt service. They can sign up online, by phone or in a branch, providing their mobile phone number at this time. Each time the card is used, or based on preset limits by transaction type, the customer receives an SMS alert. If the transaction is legitimate, the customer does not need to take any action. If the customer feels the transaction is fraudulent, they can call the bank or reply to the SMS, and the bank will block the card. The bank can contact the customer immediately to analyze the transaction and identify whether it is fraudulent, and confirm it’s not a payment the customer may have forgotten they scheduled. This immediate response, involving the customer ACI Worldwide, the Universal Payments (UP) company, powers in the process of fraud detection and prevention, creates a more positive, electronic payments for more interactive relationship between the customer and the bank. The result is than 5,100 organizations around a tangible differentiation that helps OTP retain existing customers and win the world. More than 1,000 of new customers. the largest financial institutions and intermediaries, as well as OTP Bank’s fraud rates have remained low since the first few years of the thousands of global merchants, service and are among the lowest in the world. rely on ACI to execute $14 trillion each day in payments and securities. In addition, myriad organizations utilize our electronic bill presentment and payment services. Through our comprehensive suite of software solutions delivered on customers’ premises or through ACI’s private cloud, we provide real-time, immediate payments capabilities and enable the industry’s most complete omni-channel payments experience. LEARN MORE WWW WWW.ACIWORLDWIDE.COM @ACI_WORLDWIDE [email protected] Americas +1 402 390 7600 Asia Pacific +65 6334 4843 Europe, Middle East, Africa +44 (0) 1923 816393 © Copyright ACI Worldwide, Inc. 2017 ACI, ACI Worldwide, ACI Payment Systems, the ACI logo, ACI Universal Payments, UP, the UP logo, ReD, PAY.ON and all ACI product names are trademarks or registered trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in the United States, other countries or both. Other parties’ trademarks referenced are the property of their respective owners. ACS6261 04-17 4.
Load more

Recommended publications
  • View Annual Report
    2008 Annual Report 2008 annual report 2 OTP Bank Annual Report 2008 Contents 4 Message from the Chairman and Chief Executive Offi cer 9 Financial Highlights 10 Macroeconomic and fi nancial environment in 2008 15 Business Reports 16 Activities and business results of the Bank Group in 2008 20 The business operations of OTP Group members in Hungary 31 The business operations of foreign subsidiaries 37 Management’s Analysis 38 Management’s Analysis of developments in the Bank’s fi nancial position 55 Financial Summary 57 Financial Reports 58 Independent Auditors’ Report (consolidated, based on IFRS) 60 Balance Sheet (consolidated, based on IFRS) 61 Statements of Operations (consolidated, based on IFRS) 62 Statement of Cash Flows (consolidated, based on IFRS) 63 Statement of Changes in Shareholders’ Equity (consolidated, based on IFRS) 64 Notes to Consolidated IFRS Financial Statements for the year ended 31 December 2008 109 Independent Auditors’ Report (unconsolidated, based on IFRS) 111 Balance Sheet (unconsolidated, based on IFRS) 112 Profi t and Loss Account (unconsolidated, based on IFRS) 113 Statement of Cash Flow (unconsolidated, based on IFRS) 114 Statement of Changes in Shareholders’ Equity (unconsolidated, based on IFRS) 115 Notes to Unconsolidated IFRS Financial Statements for the year ended 31 December 2008 157 Corporate Governance 158 Senior management of OTP Bank and executive members of the Board of Directors 160 Non-executive members of the Board of Directors of OTP Bank 162 Members of the Supervisory Board of OTP Bank 163 Information for the Shareholders 165 Declaration on Corporate Governance practice 168 Anti-money Laundering Measures 169 Corporate Social Responsibility Contents 3 Message from the Chairman and Chief Executive Offi cer DEAR SHAREHOLDERS, As Hungary’s leading bank and one of the region’s most important financial institutions, every year OTP is faced with a greater set of challenges.
    [Show full text]
  • OTP Bank Plc. Separate and Consolidated, OTP Mortgage Bank Ltd., OTP Building Society Ltd., Merkantil Bank Ltd
    OTP Bank Plc. OTP Bank Plc. separate and consolidated, OTP Mortgage Bank Ltd., OTP Building Society Ltd., Merkantil Bank Ltd. In line with Act CCXXXVII of 2013 on Credit Institutions and Financial Enterprises, and Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (English translation of the original report) Budapest, 12 April 2019. DISCLOSURE BY INSTITUTIONS 31. December 2018 Table of contents I. OTP Group ..................................................................................................................................................... 10 I.1. Risk management objectives and policies ........................................................................................... 10 I.1.1. OTP Group’s riskmanagement strategy and general risk profile ..................................................... 10 I.1.2. Credit risk mitigation ........................................................................................................................ 15 I.1.3. Applied stress test methodologies in the OTP Group ...................................................................... 16 I.2. Information regarding corporate governance system .......................................................................... 17 I.2.1. The number of directorships of OTP Bank’s chief executives ......................................................... 17 I.2.2. Board members’ education data .....................................................................................................
    [Show full text]
  • CONSOLIDATED Annual Report 2020
    CONSOLIDATED Annual report 2020. Content 2 Annual report 2020. 01 4 OTP Group 02 8 A word from the management 03 10 OTP Bank Serbia A.D. Beograd 04 12 Macroeconomic overview for 2020 05 16 Retail Banking Division 06 20 Corporate banking division 07 24 Financial market activities 08 26 Human Resources Department 09 32 Corporate social responsibility 10 38 Risk management 11 42 Liquidity and interest rate risk management 12 46 Capital management and capital adequacy indicators 13 50 Consolidated financial indicators of the bank 14 56 Future development of the Bank 15 60 Affiliates OTP banka Srbija A.D. Beograd 3 01 OTP Group • 1,700 branches • 5,000 ATMs • 40.000 employees • 20 million clients 4 Annual report 2020. OTP Group provides high-quality financial Digitalization solutions to meet the needs of almost 20 million private and corporate clients in The Group is a pioneer in digitalization the Central and Eastern European region, and has been proactive for 25 years in through nearly 1,700 branches and 5,000 the field of digital transformation of its ATMs, internet and electronic channels, operations and implementation of new and with its almost 40,000 employees. technologies in the financial market. The Among the European banking groups, it strategic orientation towards innovations boast one of the best capital and liquid- has opened the possibility of working with ity positions and is always able to pro- almost 900 start-up companies, with 30 vide conditions for stable operations and pilot projects already realized. The fourth growth. The profitability of operations is a OTP Start-up Partnership Program is key precondition for continued growth and underway, which is the most comprehen- sustainable renewal.
    [Show full text]
  • Settlement Banks for FX and MM Transactions, Options and Derivatives
    Settlement Banks for FX and MM Transactions, Options and Derivatives Cou ntry: Currency: Correspondent Bank: SWIFT: Australia AUD National Australia Bank Ltd., Me lbourne NATAAU33033 Acc. 1803012548500 Bulgaria BGN Unicredit Bulbank AD, Sofia UNCRBGSF IBAN BG42UNCR96601030696607 Canada CAD Royal Bank of Canada, Toronto ROYCCAT2 Acc. 095912454619 SYDBANK A/S China CNY Standard Chartered Bank Ltd., Hong Kong SCBLHKHH Acc. 44709448980 Czech R epublic CZK Unicredit Bank Czech Republic AS , Prague BACXCZPP IBAN: CZ242700000000008166802 8 Acc. 81668028 Denmark DKK Danmarks Nationa lbank, Copenhagen DKNBDKKK Acc. 1115 -4 IBAN DK0910050000011154 Euroland EUR Commerzbank A G, Frankfurt COBADEFF Acc. 4008724346 IBAN DE 83500400000872434600 Hong Kong HKD Stan dard Chartered, Hong Kong SCBLHKHH Acc. 44708122739 Hungary HUF OTP Bank PLC , Budapest OTPVHUHB IBAN: HU66117820078102030800000000 Iceland ISK NBI HF NBIIISRE IBAN: IS230100270912726805925439 India INR Standard Chartered Bank , New Delhi SCBLINBB Acc. 222 -0-523804 -8 Indonesia IDR Standard Chartered Bank, Jakarta SCBLIDJX Japan JPY Bank of Tokyo -Mitsubishi UFJ Ltd , Tokyo BOTKJPJT Acc. 653 -0440973 Kenya KES Kenya Commercial Bank, Nairobi KCBLKENX Mexico MXN BBVA Bancomer S.A., Mexico BCMRMXMMCOR Acc. 0095001475 Morocco MAD Banque Marocaine du Commerce Extérieur, Cass ablanca BMCEMAMC New Ze aland NZD ANZ National Bank Ltd , Wellin gton ANZBNZ22058 Acc. 266650 -00001 NZD NO.1 Nor way NOK DNB Nor Bank ASA , Oslo DNBANOKK IBAN: NO32 70010213124 Acc. 7001.02.13124 Valid from: 24.02.2021 Sydbank A/S, CVR No DK 12626509, Aabenraa www.sydbank.com Page: 1/2 Settlement Banks for FX and MM Transactions, Options and Derivatives Cou ntry: Currency: Correspondent Bank: SWIFT: Poland PLN Bank Millennium SA, Warsaw BIGBPLPW IBAN PL 02116022020000000039897935 Romania RO N UniCredit Tiriac Bank SA, Bucharest BACXROBU IBAN RO65B ACX0000000001413310 Saudi Arabia SAR Saudi British Bank, Riyadh SABBSARI Acc.
    [Show full text]
  • OTP Group 1Q 2021 Results
    OTP Group 1Q 2021 results Conference call – 7 May 2021 László Bencsik Chief Financial and Strategic Officer In 1Q 2021 the accounting profit exceeded HUF 93 billion, while the adjusted profit comprised HUF 117 billion. The adjusted profit grew both y-o-y and q-o-q as a result of lower risk costs After(milliárd tax forintban) profit development y-o-y (in HUF billion) After tax profit development (in HUF billion) Accounting profit after tax Adjusted profit after tax Adjusted profit after tax +49% 93.3 +268% 117.3 117.3 78.6 56% 31.8 47% 47% 31% 21% -4.1 1Q 2020 1Q 2021 1Q 2020 1Q 2021 4Q 2020 1Q 2021 Adjustments (after tax) 1Q 2020 1Q 2021 Banking tax -16.7 -18.9 Expected one-off negative effect of the debt Hungarian subsidiaries -20.2 0.0 repayment moratorium Foreign subsidiaries Effect of acquisitions 0.9 -3.5 Others 0.0 -1.61 Total -35.9 -24.0 1 Of which +HUF 0.7 billion goodwill / investment impairment charges; +0.1 dividend and net cash transfer; -2.4 result of the treasury share swap agreement. 2 In 1Q 2021 the adjustments hit -HUF 24 billion in total, mostly due to the lump-sum recognition of the Hungarian bank tax (in HUF billion) 1Q 20 4Q 20 1Q 21 Q-o-Q Y-o-Y Consolidated after tax profit (accounting) -4.1 71.5 93.3 31% Adjustments (total) -35.9 -7.1 -24.0 238% -33% Dividends and net cash transfers (after tax) 0.0 -0.3 0.1 150% 1 Goodwill/investment impairment charges (after tax) 0.0 0.0 0.7 2 Special tax on financial institutions (after tax) -16.7 0.0 -18.9 13% Expected one-off negative effect of the debt repayment -20.2 -10.8 0.0 moratorium in Hungary and Serbia (after tax) 3 Effect of acquisitions (after tax) 0.9 4.0 -3.5 4 Result of the treasury share swap agreement (after tax) ---2.4 Consolidated adjusted after tax profit 31.8 78.6 117.3 49% 268% 1 HUF 0.7 billion corporate tax effect emerged because of the investment impairment booked at a Hungarian subsidiary.
    [Show full text]
  • OTP Group - Ideally Positioned for Post-COVID Rebound
    OTP Group - Ideally positioned for post-COVID rebound Investor presentation Based on 4Q 2020 results Key achievements in 2020 13% ROE, improving operating income Stable operation amid challenges Accelerating digitalization +9% organic performing loan growth Stable loan quality and capital position Note: the organic loan growth refers to the FX-adjusted y-o-y growth in Stage 1 + 2 loan volumes, filtering out the effect of the sale of OTP Bank Slovakia. 2 In 2020 the adjusted profit of OTP Group declined by 26% as a result of higher risk costs related mainly to the pandemic situation, meanwhile the Return on Equity remained outstanding compared with other banks active in the CEE region After tax profit (in HUF billion) Operating profit (in HUF billion) Total risk costs (in HUF billion) Adjusted +5% 540 419 -26% Accounting 513 310 -47 4X 413 260 -188 2019 2020 2019 2020 2019 2020 Return on Equity (ROE) of OTP Group and other banks active in the CEE region1 (2020, %) 13.0% 7.0% 6.6% 6.0% 5.2% 4.8% 10.9% 4.5% -4.5% 1 Source: SNL banking database, OTP 3 In 4Q 2020 the balance of adjustments was -HUF 7.1 billion, mostly related to the extended moratorium in Hungary, partly offset by the release of provisions set aside for the sale of the Slovakian bank presented on the effect of acquisitions line (in HUF billion) 2019 2020 Y-o-Y 4Q 19 3Q 20 4Q 20 Q-o-Q Y-o-Y Consolidated after tax profit (accounting) 412.6 259.6 -37% 103.0 113.6 71.5 -37% -31% Adjustments (total) -6.5 -50.6 -3.0 -4.1 -7.1 74% 139% Dividends and net cash transfers (after tax)
    [Show full text]
  • Vulnerable Banks
    Vulnerable Banks Robin Greenwood Harvard University and NBER Augustin Landier Toulouse School of Economics David Thesmar HEC Paris and CEPR First draft: October 2011 Current draft: October 2012 Abstract When a bank experiences a negative shock to its equity, one way to return to target leverage is to sell assets. If asset sales occur at depressed prices, then one bank’s sales may impact other banks with common exposures, resulting in contagion. We propose a simple framework that accounts for how this effect adds up across the banking sector. Our framework explains how the distribution of bank leverage and risk exposures contributes to a form of systemic risk. We compute bank exposures to system-wide deleveraging, as well as the spillover of a single bank’s deleveraging onto other banks. We use the model to evaluate a variety of crisis interventions, such as mergers of good and bad banks, and equity injections. We apply the framework to European banks vulnerable to sovereign risk in 2010 and 2011. We are grateful to Tobias Adrian, Laurent Clerc, Linda Goldberg, Sam Hanson, Anil Kashyap, Yueran Ma, Jamie McAndrews, Thomas Philippon, Carmen Reinhart, Andrei Shleifer, Jeremy Stein, Adi Sunderam, and seminar participants at the Federal Reserve Bank of New York, Federal Reserve Board of Governors, TSE-Banque de France conference in Paris, Harvard, Sciences-Po, Zûrich and the NBER International and Risks of Financial Institutions conferences for their input. I. Introduction Financial stress experienced by banks can contaminate other banks and spiral into a shock that threatens the broader financial system: this is systemic risk.
    [Show full text]
  • OTP Bank Rating Research
    OTP Bank PLC Primary Credit Analyst: Lukas Freund, Frankfurt + 49-69-3399-9139; [email protected] Secondary Contact: Anna Lozmann, Frankfurt + 49 693 399 9166; [email protected] Support Analyst: Harshleen Sawhney, GURGAON HARYANA + 91 91(0) 124 672; [email protected] Table Of Contents Major Rating Factors Outlook Rationale Related Criteria Related Research S&P GLOBAL RATINGS360 APRIL 29, 2021 1 © S&P Global Ratings. All rights reserved. No reprint or dissemination without S&P Global Ratings' permission. See Terms of Use/Disclaimer on the last page. OTP Bank PLC Additional SACP bbb Support 0 0 + + Factors Anchor bb+ Issuer Credit Rating ALAC 0 Business Support Strong Position +1 BBB/Stable/A-2 Capital and GRE Support Adequate 0 Earnings 0 Risk Position Adequate 0 Group Resolution Counterparty Rating Support 0 Above Funding Average BBB/--/A-2 +1 Sovereign Liquidity Strong Support 0 Major Rating Factors Strengths: Weaknesses: • Leading market position in Hungary and strong • Potential execution risks from acquisitions. franchise in a number of Central, Eastern, and • Risks related to rapid organic growth. Southeastern European countries (CESEE) as well as • Large holdings of home-sovereign debt securities the Commonwealth of Independent States (CIS). carrying repricing risks. • Sound risk-adjusted margins and diversified loan portfolio and earnings by geography and assets. • Substantial digitalization efforts with noteworthy digital franchise. S&P GLOBAL RATINGS360 APRIL 29, 2021 2 © S&P Global Ratings. All rights reserved. No reprint or dissemination without S&P Global Ratings' permission. See Terms of Use/Disclaimer on the last page. OTP Bank PLC Outlook: Stable The stable outlook on OTP Bank reflects our view that the bank will continue its growth path and withstand macroeconomic pressure during the economic slowdown, given its good earnings generation and prudent risk management.
    [Show full text]
  • XS0274147296 and the Common Code Is 027414729
    Level: 6 – From: 6 – Sunday, November 5, 2006 – 6:34 pm – mac7 – 3569 Intro : 3569 Intro PROSPECTUS The date of this Prospectus is 6 November 2006. OTP Bank Nyrt. (incorporated with limited liability in the Republic of Hungary) EUR 500,000,000 Fixed to Floating Rate Perpetual Subordinated Notes Issue price: 99.875 per cent. The EUR 500,000,000 Fixed to Floating Rate Perpetual Subordinated Notes (the Notes) are issued by OTP Bank Nyrt. (the Issuer). Interest on the Notes will be payable from and including 7 November 2006 to but excluding 7 November 2016 at the rate of 5.875 per cent. per annum, annually in arrear. From and including 7 November 2016 the Notes will bear interest at a rate reset quarterly of 3.00 per cent. per annum above the Euro-zone interbank offered rate for three month euro deposits payable quarterly in arrear on the Interest Payment Dates (as defined in “Terms and Conditions of the Notes”) falling on 7 February, 7 May, 7 August and 7 November in each year, all as more particularly described in “Terms and Conditions of the Notes – 3. Interest”. Interest payments may be deferred as described in “Terms and Conditions of the Notes - .4 Interest Deferral”. Payments in respect of the Notes will be made without deduction for, or on account of, taxes of any Tax Jurisdiction (as defined in “Terms and Conditions of the Notes”), unless such deduction is required by law. In the event that any such deduction is made, the Notes will be subject to grossing up by the Issuer, subject to certain exceptions as are more fully described under “Terms and Conditions of the Notes - 7.
    [Show full text]
  • Client Information on International Transfers
    Client information on international transfers I. Transfers to Member States of the European Union With effect from 1 January 2007, based on European Payment Council (EPC) Decision EPC092/05, the indication of the IBAN account number of the beneficiary and the BIC/SWIFT code of the beneficiary’s bank is mandatory in the case of transfers in euro currency within the European Economic Area (the Member States of the European Union, Iceland, Lichtenstein, Norway and Switzerland). Pursuant to the regulation, with effect from the above date, if the IBAN account number and the BIC code fail to be indicated, the beneficiary’s bank • may refuse to execute the payment instruction, in which case it re-transfers the amount affected net of its own expenses, or • executes the instruction, however, owing to the manual processing involved, it charges a separate fee that it passes onto the sender. OTP Bank Nyrt. shall not take responsibility for the execution of such payment instructions that the beneficiary’s bank refuses to execute because of the absence of the relevant IBAN (international bank account number) or BIC/SWIFT code. A separate fee charged for data-deficient payment instructions (currently HUF 2,000) are charged in all cases when any one of the data below fails to be or is erroneously indicated on foreign currency and international forint payment instructions: • BIC code (Bank Identifier Code): a code containing 8 or 11 alphanumeric characters (e.g. OTPVHUHB) • IBAN (International Bank Account Number) – if the destination of the transfer is a country where IBAN is used (for details, please refer to the annex) • provision of an erroneous legal title (statistical code).
    [Show full text]
  • OTP Bank Annual Report
    OTP Bank Annual Report 2019 Summary 4 Message from the Chairmain of the Supervisory Board 6 Financial Highlights 8 Main indicators of OTP Group 9 Main indicators of OTP Bank Romania S.A. 10 Macroeconomic and financial environment 14 Business Results 16 History of OTP Bank Romania S.A. 18 OTP Bank Romania’s approach 19 Plans 20 Objectives 20 OTP Bank Romania’s Strategy 22 OTPdirekt 25 Bank Card Business 26 Products for Individuals (Liabilities and Loans) 32 Small and Medium Enterprises 34 Private Banking 36 Corporate Banking 37 Treasury 38 OTP Bank Subsidiaries Present in Romania 44 Activities of other Foreign Subsidiaries of OTP Group 56 Financial Statements 58 Separate Income Statement 59 Separate Statement of Financial Position 60 Separate Statement of Cash Flows 61 Separate Statement of Changes in Equity 62 Notes to the Separate Financial Statements 164 Independent Auditor's Report 170 Corporate Governance 172 Supervisory Board 181 Management Board 188 Corporate Social Responsibility 196 Compliance Function 2 Message from the Chairmain of the Supervisory Board 3 MESSAGE FROM THE CHAIRMAIN OF THE SUPERVISORY BOARD In Romania, the specific European level OTP Bank Romania's involvement in the evo- 2020. At the beginning of the year, even if evolution conditions have exceeded the lution and development of the local bank- at the macroeconomic level the indicators standard, OTP Bank Romania marking a new ing sector continued in 2019. The bank con- showed stability, we sensed a downward year of growth. Thus, OTP Bank Romania stantly contributed to providing financial trend of the economic conditions for the next reported for 2019 a net profit adjusted after tax education for the population through pro- period.
    [Show full text]
  • Summary of the First Quarter 2020 Results
    OTP Bank Plc. Summary of the first quarter 2020 results (English translation of the original report submitted to the Budapest Stock Exchange) Budapest, 8 May 2020 SUMMARY OF THE FIRST QUARTER 2020 RESULTS CONSOLIDATED FINANCIAL HIGHLIGHTS1 AND SHARE DATA Main components of the Statement of recognised income 1Q 2019 4Q 2019 1Q 2020 Q-o-Q Y-o-Y in HUF million Consolidated after tax profit 72,581 102,979 -4,072 -104% -106% Adjustments (total) -17,819 -2,971 -35,904 101% Consolidated adjusted after tax profit 90,400 105,950 31,832 -70% -65% without the effect of adjustments Pre-tax profit 101,826 114,585 35,850 -69% -65% Operating profit 108,758 139,991 127,183 -9% 17% Total income 239,716 305,518 283,873 -7% 18% Net interest income 162,670 195,875 200,280 2% 23% Net fees and commissions 57,223 85,503 69,234 -19% 21% Other net non-interest income 19,823 24,140 14,359 -41% -28% Operating expenses -130,958 -165,527 -156,690 -5% 20% Total risk costs -6,197 -24,891 -91,694 268% One off items -735 -515 360 -170% -149% Corporate taxes -11,426 -8,635 -4,018 -53% -65% Main components of balance sheet 1Q 2019 4Q 2019 1Q 2020 Q-o-Q Y-o-Y closing balances in HUF million Total assets 16,107,501 20,121,767 21,858,302 9% 36% Total customer loans (net, FX adjusted) 9,717,035 12,836,927 13,078,701 2% 35% Total customer loans (gross, FX adjusted) 10,441,544 13,548,983 13,876,067 2% 33% Allowances for possible loan losses (FX adjusted) -724,509 -712,055 -797,367 12% 10% Total customer deposits (FX adjusted) 13,197,120 16,228,237 16,355,462 1% 24% Issued securities
    [Show full text]