OTP Bank Plc. is a market leader of the Hungarian market with over 20% of market
share of assets. It has subsidiaries in eight countries of the Central- and Eastern
European region.
OTP Bank Plc. notes the announcements made today by the EBA, the Hungarian Financial
Supervisory Authority and the Ministry for National Economy on the EU-wide stress
test and fully acknowledges the outcomes of this exercise.
The EU-wide stress test, carried out across 91 banks covering over 65% of the
EU banking system total assets, seeks to assess the resilience of European banks
to severe shocks and their specific solvency to hypothetical stress events under
certain restrictive conditions.
The assumptions and methodology were established to assess banks’ capital adequacy
against a 5% Core Tier 1 capital benchmark and are intended to restore confidence
in the resilience of the banks tested. The adverse stress test scenario was set
by the ECB and covers a two-year time horizon (2011-2012). The stress test has
been carried out using a static balance sheet assumption as at December 2010.
The stress test does not take into account future business strategies and management
actions and is not a forecast of OTP Bank Plc. profits.
The EU-wide stress test requires that the results and weaknesses identified,
which will be disclosed to the market, are acted on to improve the resilience
of the financial system.
The estimated consolidated Core Tier 1 capital ratio of OTP Bank Plc. would change
to 17.2% under the baseline scenario and to 13.6% under the adverse scenario in 2012 compared to 12.3% as of end of 2010.
Following completion of the EU-wide stress test, the results determine that OTP
Bank Plc. meets the capital benchmark set out for the purpose of the stress test.
The bank will continue to ensure that appropriate capital level must be maintained.
Notes to editors
The detailed results of the stress test under the baseline and adverse scenarios
as well as information on [ABC bank] credit exposures and exposures to central
and local governments are provided in the accompanying disclosure tables based
on the common format provided by the EBA.
The stress test was carried out based on the EBA common methodology and key common
assumptions (e.g. constant balance sheet, uniform treatment of securitisation
exposures) as published in the EBA Methodological note. Therefore, the information
relative to the baseline scenarios is provided only for comparison purposes. Neither the baseline scenario nor the adverse scenario should in any way be construed
as a bank's forecast or directly compared to bank's other published information.
See more details on the scenarios, assumptions and methodology on the EBA website:
http://www.eba.europa.eu/EU-wide-stress-testing/2011.aspx
15 July 2011
Hungarian Financial Supervisory Authority
