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investor’s handbook

Investor DayBudapest, April 20, 2007

OTP Bank Investor Day, April 2007 1

Table of Contents Schedule

2

Faces of the Conference

3

Presentations

9

Vision of OTP Group – Major strategic targets and directions

9

Transformation and integration of the foreign subsidiaries

24

OTP Banking Group – International management model

33

The unique growth opportunity in CEE – Regional macroeconomic and banking market outlook

35

Hungary: Incumbent’s game focusing on customer loyalty

45

Bulgaria: Continuing the unique success story, retaining Number 1 retail position

51

Russia: Aggressive expansion in consumer finance and mortgage

56

Ukraine: Focused attack on affluent and retail lending segment

61

Romania: Become significant retail/corporate player, achieve sound profitability

66

Montenegro: Retaining Number 1 position in a fast growing and highly competitive market

71

Disclaimer

76

Practical information

77


Schedule 08:00 - 09:00 Registration 09:00 - 09:10 Opening, introduction Sandor Pataki,

Head of IR, OTP Bank 09:10 - 09:20 Welcome speech Dr. Laszlo Urban,

CFO, OTP Bank 09:20 - 10:05 Vision of OTP Group – Major strategic targets and

directions Dr. Sandor Csanyi, Chairman & CEO, OTP Bank

10:05 - 10:50 Transformation and integration of the foreign subsidiaries

Dr. Laszlo Urban, CFO, OTP Bank

OTP Banking Group - International management model

Laszlo Bencsik, LIIB Secretary, OTP Bank

10:50 - 11:10 Coffee break (White Salon) 11:10 - 11:40 The unique growth opportunity in CEE – Regional

macroeconomic and banking market outlook Tamas Schenk, Head of Strategy, OTP Bank Tamas Vojnits, Head of Research, OTP Bank

11:40 - 12:15 Q & A’s 12:15 - 13:45 Lunch - buffet (Rossini Room)

OTP's strategy on the major markets (part 1) 13:45 - 14:10 Hungary: Incumbent’s game focusing on customer

loyalty Csaba Lantos, Deputy-CEO, OTP Bank

14:10 - 14:35 Bulgaria: Continuing the unique success story, retaining Number 1 retail position

Diana Miteva, Head of Retail, DSK BankDorothea Nikolova, CFO, DSK Bank

14:35 - 15:00 Russia: Aggressive expansion in consumer finance and mortgage

Laszlo Wolf, Deputy-CEO, OTP Bank

15:00 - 15:25 Ukraine: Focused attack on affluent and retail lending segment

Dmitry Zinkov, CEO, OBU

15:25 - 15:45 Q & A’s 15:45 - 16:05 Coffee break (White Salon)

OTP's strategy on the major markets (part 2) 16:05 - 16:30 Romania: Become significant retail/corporate

player, achieve sound profitability Dr. Frigyes Harshegyi, CEO, OBR

16:30 - 16:55 Montenegro: Retaining Number 1 position in a fast growing and highly competitive market

Aleksandra Popovic, Assistant General Director, CKB

16:55 - 17:10 Q & A’s 17:10 - 17:25 Follow up and closing Dr. Laszlo Urban,

CFO, OTP Bank 17:25 - 17:30 Closing, technical information Sandor Pataki,

Head of IR, OTP Bank 19:00 Coaches departs from the Boscolo NYP Hotel 19:30 - 23:00 Dinner with entertainment (Europe Conference Ship)


Faces of the Conference

Dr. Sándor Csányi Chairman & CEO

OTP Bank

Dr. Sándor Csányi has served as Chairman and Chief Executive Officer of OTP Bank since 1992 and is responsible for the strategy and overall operations of the Bank. Dr. Csányi has held several other senior positions in the banking sector, including Head of Department at Hungarian Credit Bank Ltd. from 1986 to 1989 and Deputy Chief Executive Officer at K&H Bank from 1989 to 1992. Before that, he worked at the Revenue Directorate and at the Secretariat of the Hungarian Ministry of Finance and as Head of Division at the Hungarian Ministry of Food and Agriculture. Dr. Csányi gained a degree from the Financial and Accounting College in 1974 and from the Budapest University of Economics in 1980. He is a financial economist, a certified price analyst and a chartered accountant. He is a member of the board of Europay and of MOL, and holds a seat on the management committee of the Hungarian Banking Association.

Dr. István Gresa Deputy CEO

Credit Approval and Risk Management Division

OTP Bank

Dr. István Gresa has served as Deputy Chief Executive Officer of the Credit Approval and Risk Management Division of OTP Bank since March 1, 2006. Dr. Gresa graduated from the College of Finance and Accounting in 1974 and from the Budapest University of Economics in 1980, where he went on to gain a PhD in 1983. He worked at Budapest Bank from 1989 to 1993. He has been employed by OTP Bank from 1993, initially as director for Zala County and then, from 1998, as managing director of the West Transdanubian Region.

Csaba Lantos Deputy CEO

Retail Division OTP Bank

Mr. Csaba Lantos has been a member of the Board since 2001. He has served as Deputy CEO of OTP Bank since 2000. He was employed at Budapest Bank as a bond dealer from 1986. After that he was Head of Securities Trading at Creditanstalt Securities Ltd. until 1994 and Deputy CEO there until 1997. At the same time he served as managing director of Creditanstalt Securities Investment Fund Management Ltd. Between 1997 and 2000 he was the CEO and Chairman of the Board of CA IB Securities. He has been a member of the Council of the Budapest Stock Exchange since 1990 and Chairman of the Board of the Central Clearing House and Depository Ltd. (KELER) since 1993.

Dr. Antal Pongrácz CAO

Staff Division OTP Bank

Dr. Antal Pongrácz has been a member of the Board since 2002. He has served as Managing Director of OTP Bank, and has been Deputy CEO since 2001. From 1969 he worked as an analyst at ‘Petrolkémiai Vállalat’, and then as a group manager at the Revenue Directorate. From 1976 he served at various departments of the Ministry of Finance, as a manager. After that, he was deputy Chairman of the State Office for Youth and Sports. From 1988 to 1990 he served as the first Deputy CEO of OTP Bank. He was CEO and later Chairman & CEO of the European Commercial Bank Ltd. until 1994. In that year he was appointed Chairman & CEO of Szerencsejáték Rt. and then went on to serve as CEO of Hungary’s flagship airline, Malév. Dr. Pongrácz has a PhD and MSc from the Budapest University of Economics.


Ákos Takáts Deputy CEO

IT and Bank Operations Division

OTP Bank

Mr. Ákos Takáts graduated at the University of Horticulture and Food Industry in 1982, then he gained a degree in engineering at the same university. He has been working in the banking sector since 1987. Between 1989 and 1993 he worked for Investbank as an administrator. In 1993 he was employed as a Deputy Head of Department by OTP Bank, from 1995 he worked as a Head of IT Development Directorate. Since October 1, 2006 he has served as Deputy CEO of OTP Bank, and the Head of IT and Logistics Division.

Dr. László Urbán

CFO Strategic and Financial

Division

Dr. László Urbán has been a Deputy CEO at the OTP Bank since January 15, 2007. He graduated from the Budapest University of Economics in 1982. He has been working in the financial sector since 1995. He worked in Washington as an employee of World Bank, later he became the Planning and Controlling Director of ABN-AMRO Hungary. Between 1998-2000, he worked as Deputy-CEO of Postabank; between 2000-2005 he was responsible for global product development at Citigroup New York; from 2005, he was Director of the National Bank of Hungary.

László Wolf Deputy CEO

Commercial Banking Division

OTP Bank

Mr. László Wolf has served as Deputy CEO of OTP Bank, with responsibility for managing the Commercial Banking Division, since 1994. Mr. Wolf gained a degree from the Budapest University of Economics in 1983. From 1983 he was employed for 8 years at the National Bank of Hungary, in the Division of International Banking Relations. From 1991 to 1993 he was Head of Treasury at BNP-KH-Dresdner Bank in Budapest, and from April 1993 to 1994 he served as Director of Treasury at OTP Bank


Violina Marinova, MB Chairperson and CEO

DSK Bank

Mrs. Violina Marinova started her banking career at DSK Bank, which was then a State Savings Institution. She started as a chief accountant in one of the Bank’s branches and worked her way up to becoming a General Branch Manager, Member of the Management Board and Executive Director, Head of the Internal Control and Audit Directorate and currently a CEO and Chairperson of the Bank’s Management Board as of January 2005. Since 2005 she has been a Deputy Chair of the Bulgarian Trade Bank Association, Deputy Chair of the MB of the Bulgarian Automated Clearing House, Member of the Board of Directors of Borica (National Bank Organization for Payments Initiated by Cards) and a Chair of the Management Board of the renowned Atanas Burov Foundation. Since 2002. Ms. Marinova has also been on the Board of Trustees of the National Music Theatre. In 2001 she won the Banker of the Year Award of Atanas Burov Foundation, in 2005 she was awarded the Andras Fay Award of OTP Bank and in 2006 became Banker of the Year in Bulgaria 2006 of Finance Central Europe magazine.

Diana Miteva, Executive Director and

member of the MB Retail Division

DSK Bank

Ms. Diana Miteva has served as Executive Director of DSK Bank since 2003 initially in charge of the Corporate Banking Division and presently of the Retail Banking Division. Prior to that from 1992 to 2003 she worked at several other banks in Sofia, Bulgaria (Xiosbank as Head of Treasury Back Office, ING – Sofia branch as a Financial Controller and member of Management committee; and Demirbank – Bulgaria, where she held the position of an Executive Director and member of the Management Board.) Ms. Miteva has a Masters degree in Macroeconomics from the University of National and World Economy, Sofia. She has obtained a number of professional training qualifications by well known financial sector organizations from Great Britain, the Netherlands, Turkey and the Ministry of Finance of Luxembourg. As of 2004 Ms. Miteva has been a member of the Supervisory Board of DSK Asset Management and since 2005 she is also a member of the Board of Directors (currently Supervisory Board) of DSK Leasing and DSK Auto Leasing.

Dorothea Nikolova, Executive Director and

member of the MB Finance and Planning Division

DSK Bank

Ms. Dorothea Nikolova started working for DSK Bank in November 2003 as Head of the Planning and Controlling department. In December 2005 she became a Procurator of the Bank and Head of the Finance and Planning Division. In January 2007 she became an Executive Director of DSK Bank and member of the Bank’s Management Board. Previously, from 2000 to 2003, Ms. Nikolova had worked for Citibank N.A. Sofia Branch as a Chief Financial Officer and member of the Management Committee of the Branch. From 1993 to 2000 she also worked for the audit practice of PricewaterhouseCoopers at the Bulgarian office and at the Banking and capital markets division in London. She graduated the University of National and World Economy in Sofia, major in Finance and Banking. In June 1997 Ms. Nikolova obtained ACCA qualification, among the first three qualified auditors in Bulgaria. During her work as a CFO she participated in the economic policy committee of the Association of Commercial Banks in Bulgaria and in the Bulgarian International Business Association. Since 2005 Ms. Nikolova has been involved as management member of a few companies within the group.

Damir Odak, CEO

OTP banka Hrvatska

Mr. Damir Odak has been CEO of OTP banka Hrovatska since 2003. Prior to this he worked for Zagrebačka banka as Division Director for corporate banking between 1997-2000 and as Member of Board between 2000-2003. Before this, he managed the establishment and expansion of Trgovačka banka as CEO between 1990 and 1997. He graduated in Economics from University of Zagreb in 1987, after that he worked as research fellow in Zagreb Economic Institute until 1989


Ernő Kelecsényi, CEO

OTP Banka Slovensko

Mr. Ernő Kelecsényi has served as CEO of OTP Banka Slovensko since 2003. He started his career in 1978 in a branch office of OTP Bank. He was promoted in 1988 to senior comptroller and became head of a regional business unit. Between 2000 and 2002 he held the position of Director of the Corporate Division at OTP Rt headquarters. In 2002 he was appointed Deputy Chief Executive Officer of OTP Banka Slovensko. Mr. Kelecsényi has a Masters degree in Economics from the University of Economics, Budapest (1984) and qualification from International Course for Bank Managers (1993). He achieved further professional experience at Republic National Bank of New York and San Paolo di Torino.

Martin Kryl Member of the Board of

Directors and Deputy CEO Retail Banking Division OTP Banka Slovensko

Mr. Martin Kryl is a graduate in Law on the Charles University at Prague. His career in banking started in Zivnostenska banka in 1991, where he worked as Director of Capital Markets and later as Managing Director of Private and Personal Banking. In 2001, he became a Member of the Board of Zivnostenska banka responsible for Retail banking. In 2004 he left to consulting business and joined Deloitte’s Consulting practice to lead its FSI division in Prague. Since July 2006, Martin Kryl is Head of Retail banking at OTP Banka Slovensko.

Dr. Frigyes Hárshegyi, CEO

OTP Bank Romania

Dr. Frigyes Hárshegyi has served as CEO of OTP Bank Romania since 2005. Prior to this, he had several positions in different banks and in some other companies. He worked for the National Bank of Hungary (NBH) and for International Investment Bank (Moscow) as legal adviser between 1971 and 1979. Then he was promoted to Managing Director of the International Department in International Investment Bank, in 1982 he became Deputy General Manager for European Banking Relations in NBH. Between 1985 and 1989 he led the Representative Office of the NBH in Frankfurt (Germany). From 1990 to 1997 he was Deputy President of the NBH responsible for the country’s foreign debt and foreign exchange reserves management. After this he held several positions in the members of CIB Group (owned by Banca Intesa), and in some other industry companies (Phylaxia Pharma, East European Recycling And Environment Company). He has a doctorate in low from the University of Szeged (1974).

Dmitry Zinkov,

Chairman of the Board OTP Bank (Ukraine)

Mr. Dmitry Zinkov has served as Chairman of the Board of OTP Bank since June, 2006 and is responsible for the strategy and overall operations of the Bank. Before this Mr. Zinkov has been working at OTP Bank (previous RBUA) for 7 years, from September, 1999 with responsibility for managing the Corporate Clients and Loans Department. From 2001 he was in charge in Sales Network Management Division. In November, 2005 Mr. Zinkov was advanced to the position of OTP Bank Member of the Board. Dmytro Zinkov has more than 12 years of working experience in banking institutions. He began his banking career at JSCB «INKO» in 1993. After that, from 1996 to 1999, has held several other senior positions in the banking sector, including Vice Chairman of JSCB «Commercial and industrial bank» and «Ukrkharchprombank» in Kyiv. Dmytro Zinkov graduated from Shevchenko Kyiv State University, in 1993 he gained honours degree in Economics as «Economist and teacher of economic disciplines».


Dr. Károly Szász,

CEO Niska banka

Dr. Károly Szász has been Director of Niska banka since March 2006. In October 2006 he also became President of the Executive Board. Prior to that, he held different positions in Hungarian banks: between 1984 and 1995 he served in CIB Bank mostly engaged in corporate finance, after this he became Head of Corporate Banking Division and member of the Management Committee in MKB Bank. He held the same position once again in CIB Bank between 1996 and 1997. Then he was General Manager of Hypo-Bank Hungaria (1998-99) and of Konzumbank (1999-2000). Between 2000-2004 he led the Hungarian Financial Supervisory Authority. He has served OTP Bank since 2004. He has a doctorate in economics from the Budapest University of Economics (1986).

Milka Ljumovic, General Director

Crnogorska comercijalna banka

Mrs. Milka Ljumovic has been General Director of the Bank since its establishment in January, 1997. Mrs. Ljumovic has a degree in Economics from the Faculty of Economics in Podgorica. She has 40 years of experience in working for various financial institutions, such as IBT Investment Bank, Titogradska banka, Montex banka. Between 1990 and 1996 she served as the Deputy Minister of Finance of the Government of Republic of Montenegro. Mrs. Ljumovic also held positions in the management boards of Telecom of Montenegro and CDA, and is presently a member of the Management Board of CKB.

Aleksandra Popovic, Assistant General Director Crnogorska comercijalna

banka

Mrs. Aleksandra Popovic was appointed as Assistant General Director in June, 2003 after having served two years as the Director of Department for International Relations and Marketing and the Executive Director for International Business of CKB. In the four and a half years prior to that she assisted CKB as a permanent consultant. Mrs. Popovic has a degree in Economics from the Faculty of Economics in Podgorica. Before joining CKB she worked in Telecom of Montenegro on projects of strategic importance for Montenegrin telecommunications. Mrs. Popovic has also experience in the areas of media and broadcasting, advertising, marketing and trade. She is a member of the Management Board of Montenegro Business Alliance.

Bose Tatar, Deputy General Director Crnogorska comercijalna

banka

Mrs. Bose Tatar has been Deputy General Director since the establishment of Crnogorska komercijalna banka AD Podgorica in January, 1997. Mrs. Tatar has a degree in Economics from the Faculty of Economics in Podgorica. She has more than 25 years of experience in working for various financial institutions (Investiciona banka, Titogradska banka, Montenegrobanka, Montex banka, Credit & Savings Organization “Mont”) and as Investment Manager in the Electric Power Company of Montenegro (EPCG).


Tamás Schenk

Director Strategy and Economic Research Directorate

OTP Bank

Mr. Tamás Schenk has been leading the strategy team of ~15 analysts at OTP Bank for three years. The directorate’s main responsibility is to synthesize OTP Group’s medium term strategic plan. In order to evaluate ideas proposed by different divisions and also to develop their own recommendations, the strategy team’s activity covers macroeconomic research, market sizing, competition analysis and studies on customer behaviour. Prior to joining OTP, Mr. Shenk worked as a consultant at McKinsey&Company and as an equity analyst at Concorde Securities. Mr. Schenk holds Master’s degrees in Economics from the Budapest University of Economic Sciences, Hungary and from CentER for Economic Research at Tilburg University, the Netherlands.

Tamás Vojnits

Director Research Department

OTP Bank

Mr. Tamás Vojnits finished his studies at the Budapest University of Economics in 1992. He started working as research assistant in Inter-Europa Bank. In 1994 Mr. Vojnits started postgraduate PhD course in economics, and his major field of interest has been monetary policy. From 1997 till 1999 he worked as economist for Rabobank International. Mr. Vojnits joined OTP Group in 1999. In the first two years he was the chief economist of OTP Securities, an investment bank. In 2001, he together with his team joined OTP Bank and became the director of the research department. Besides covering economic and financial trends, his team has a key role in working out the strategy and business policy of OTP Bank.

László Bencsik

Managing Director Bank Operations Directorate

OTP Bank

Mr. László Bencsik graduated from the Budapest University of Economics in 1999 and he also gained an MBA degree on INSEAD. Between 1996 and 1999 he was employed at Strategic Services branch of Andersen Consulting, and from 2000 to 2003 he worked as a consultant at McKinsey &Company. Since Autumn 2003 he has run the planning and controlling field of OTP Bank as a Managing Director.

Sándor Pataki

Director Investor Relations

OTP Bank

Mr. Sándor Pataki graduated from the Institute of International Relations in Moscow, he started his career at the foreign service in 1985 and worked in China. In 1992 he joined the National Bank of Hungary’s International Capital Markets department and was responsible for sovereign borrowing and rating. From 2002 he became managing director at FBH Land Credit & Mortgage Bank where he was running the liability management and IR. In 2005 he joined OTP Bank as Head of Investor Relations.

Investor Day, April 2007

Vision of OTP Group – Major Strategic Targets and Direction

Dr. Sándor Csányi, Chairman and CEO


2

828774

621

405301

2361841481221167357

0%

1000%

2000%

3000%

4000%

5000%

6000%

7000%

8000%

1995* 1996* 1997* 1998 1999 2000 2001 2002 2003 2004 2005 2006

OTP has successfully closed a period of substantial value creation as an incumbent Hungarian player . . .

Share price performance**

OTP Group pre-tax profit, EUR million

100%

* OTP non consolidated** 1995. 08. 11.=100%

BUX

OTP Bank, share price

“Over the past decade, OTP Bank’s transformation was probably the greatest business success story in Eastern Europe” (Euromoney, 2005)


3

828774

621

405301

236184148

7357

0%

1000%

2000%

3000%

4000%

5000%

6000%

7000%

8000%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

. . . and is now entering a new phase as a regional attacker bank

Share price perfor-mance**

* OTP non consolidated** 1995. 08. 11.=100%

“Over the past decade, OTP Bank’s transformation was probably the greatest business success story in Eastern Europe” (Euromoney, 2005)

999

2007E

~2,000

2010E

OTP Group pre-tax profit, EUR millions

OTP Bank

BUX

116122


4

Cornerstones of OTP Group level strategy

Targets Build a diversified regional financial group with EUR 2 billionprofits by 2010

Reasons To reap unparalleled growth opportunities leveraging ourunique understanding of the Central Eastern European markets

Tools By implementing customized strategies with strong localteams and institutionalized group-level best practice sharing


5

By 2010 OTP Group will transform into a diversified regional financial group . . .

Currently #1 position*

* In Bulgaria before HVB, Unicredito merger

Targeted positions of OTP Group for 2010

CEE region as defined by OTP Group

Targets

Reasons

Tools

Russia

UkraineSlovakia

Hungary

CroatiaRomania

SerbiaBulgaria

Montenegro

Top 10 player

Top 10 player in Retail lending, top 5 in POS, credit card

Top 5 bank, top 3 in retail lending, mortgage

#1 player

Top 5 on mar-ket, strength in wholesale

Stable top 5 player

#1 player

Top 5 in retail lending

#1 player


6

Targets

Reasons

Tools

. . . offering a full-scale of financial services via multiple channels in every country

* Plan, EoY 2007

260 million potential customers in Central-

Eastern Europe

Best in class retail banking

productsInsurance

Brokerage and asset

management

Targeted packages for small-medium

enterprises

Full spectrum of wholesale

banking services

100+ merchant partners

Remote channels (~4 million users)

~1,900 branches

7,500 + agents*


7

0.3

0.20.2

0.3

2.0

1.0

Targets

Reasons

Tools

OTP Group will deliver EUR 2 billion pre-tax profit by 2010 . . .

Hungary Russia Ukraine Bulgaria Rest of OTP Group Countries*

Total Potential major acquisitions

* Croatia, Montenegro, Romania, Serbia, Slovakia, plus revenue generated from reinvested capital

OTP Group consolidated pre-tax profit

2010, EUR billions

Including reinvestment of capital generated


8

Targets

Reasons

Tools

. . . building a strong platform, enabling >20% yearly long-term growth

2.0

0.8

2006

1.0

2007 2010

21%

CAGR: 27%

20–30%

Further exploitation of geographic and sectorial opportunities

OTP Group consolidated pre-tax profit

(EUR billions)


9

Targets

Reasons

Tools

2000 2005 Regional profit pool 2005

Regional revenues

……CAGR 2000–2005 Revenue CAGR below 7%

Revenue CAGR 7–15%

Revenue CAGR above 15%

Revenue CAGR below 0%





Central-Eastern Europe is the fastest growing banking market in the world . . .

675

1,036

9.0%

9878

4.7%

232 222

-0.9%

228143

9.8%

5125

15.6%

2217

5.0%

North America

Western Europe

Middle East

Japan

Asia

Latin America Australia

Africa

293293

1919

158158

3939

6767

2424

Global revenue poolUSD billions

1,6662,438

7.9%

33

5525

17.1%

1313

3213

19.3%

CE Europe

88 2.514.1

41.0%

Russia33

627627

HEAT MAPS: 2000–2005 REVENUES AFTER RISK COST; 2005 AFTER-TAX PROFITS; REVENUE CAGR 2000–2005USD billions, percent

455

681

8.4%

Source:McKinsey; OTP


10

Targets

Reasons

Tools

. . . driven by strong, long-term fundamental trends

1.63.23.5

4.65.9

Eastern Europe

Middle East and Africa

Asia North America

Western Europe

Strong macro-economic conditions

Penetration catch-up

Sustainable profitability

43%

Eastern Europe

102%


230%

Asia

CAGR of real GDP growth, 2001–2007, percent

PFA/Disposable income, 2006 PFL/Disposable income, 2006

16%

Eastern Europe

22%


67%

Asia

• Moderate level of margin erosion inevitable across the whole market due to competitive pressure

• Important factors counterbalancing margin decline• Product development increasing fee income potential• Limited further efficiency gains• Sophisticated risk management will decrease risk costs

• Unique CEE story due to EU accession

• Foreign spreads 20–100 bpin OTP countries

Convergencepotential


11

Targets

Reasons

Tools

These markets follow a natural development path with alternating focus . . .

Typical banking development path in East Europe

C/A battle1Consumer loan battle2 Mortgage/

SME battle3 Relationship battle4

Russia – Moscow

Russia other

Ukraine

Serbia

Albania

Bulgaria

Romania

Poland

Slovakia

Croatia

OTP Bank, Hungary

Czech RepublicLithuania

Estonia

Latvia

Slovenia

• C/A based products/services (retail, corporate)

• Network streamlining

• Fundamental IT and Bank operations

• Full product range (including basic mortgage)

• Consumer loans

• Back-Office centralization

• Private banking/ retail brokerage

• Electronic channels

• Sales efficiency, cross-selling

• Branch network management

• Agent networks

• Full mortgage portfolio

• Loyalty building

• Full investment product range

• Image/brand management

• Focused segmentation

Focus


12

Targets

Reasons

Tools

. . . all of which OTP Hungary has successfully tackled, creating a unique, shareable CEEexperience

* In 2006 without the effects of ICES

627

333

12957

1995 1998 2003 2006*

C/I 73% 66% 55% 46%

ROAE 19% 35% 29% 26%

OTP Banknon-consolidated pre-tax profitEUR millions

C/A battle1

Consumer loan battle2

Mortgage/ SME battle3

Relation-ship battle4


13

Targets

Reasons

Tools

OTP has already proven the value of hard-won local experience

* 2003–2006

0%

20%

40%

60%

80%

100%

120%

40%45%50%55%60%65%70%

2003

2006

Serbia

3-year growth CAGR of total assets in EUR*

Efficiency (C/I, 2006E)

24

2003

83

2006

After-tax profit of DSKEUR millions

3.5x

• Top management overhaul• Sales force effectiveness

campaign • Risk management system

redesign• Back-Office centralization• Consecutive waves of

product development• Data warehouse and CRM

system development

Major transformation effort

With >100 OTP Bank personnel and strong external

consultant support


14

Targets

Reasons

Tools

Optimal timing: Hungarian market conditions provide a strong base for regional group building

. . . driven by 4 main factorsDespite macro slowdown and high penetration, strong growth expected . . .

~10%

363320

275

2004 2005 2006

~400

2007

16%13%

After-tax profit of commercial banks in HungaryHUF billions

• Natural wealth accumulation resistant to short-term austerity measures

• Enormous catch-up both on PFAand PFL sides

• Stabilization of economy should positively impact banking business

• Strong counter-cyclical trend: higher interest rate environment keeping margins higher, counterbalancing lower volumes


15

Targets

Reasons

Tools

Execution is built on 3 critical cornerstones

Customized strategies

Strong local management teams

Flexible best practice sharing

Flawless execution

OTP Banking Group – Major Strategic Targets and Direction

27

Strong, highly motivated local management teams ensure success

• 80% from local countries

• Average experience of CEOs 10+ years

• Ambitious individuals selected

Highly experiencedlocal leadership

• Profit-sharing program rewarding over-achievement of targets

• Group-wide option program

Performance-basedincentives ensuringhigh motivation

• Chairmen of Supervisory Boards/Boards of Directors from senior management of OTP Bank Hungary

• Dedicated staff to support Chairmen

Secure ownership control

OTP is the only banking group in CEE whose topmanagement team holds decades of local experience

Aggressive attacker

Attacker Incum-bent

Generalist

Focused

Specialist

Str

ate

gic

po

sit

ion

ing

Market dynamics

OTP Banking Group – Major Strategic Targets and Direction

27

Targets

Reasons

Tools

OTP developed a flexible group management model

Local leadership controlled by governing bodies

Group-wide experience sharing in business areas

Coordination at Group Committee

Direct incentives

• The primary responsibility, accountability and authority lies with local top management familiar with local circumstances, with formal control through ownership structure and functional control (risk management, controlling, compliance, internal audit)

• In business areas, key task of OTP retail/corporate experts is to facilitate sharing of best practices and ensure quality of operations based primarily on informal cooperation and on working together on selected key issues

• Issue resolution through LIIB (Subsidiary Integration and Management Committee) for subsidiaries related topics supported by ALCO, IT and CAPEX committees

• Chairman of boards translate decisions directly to subsidiaries

• OTP business management, experts and functional management directly responsible for subsidiary impact

• Subsidiary top management involved in profit-sharing program


16

Targets

Reasons

Tools

OTP group members follow customized strategies based on local position and opportunities

Aggressive attacker

Attacker Incum-bent

Generalist

Focused

Specialist

Str

ateg

ic

po

siti

on

ing

Market dynamics

Focus on limited customer segment - product/channel portfolio; price aggressively

Focus on sales -product/channel development; increase service level in existing channels

Defend market share/high ROE with cross-sell, defensive pricing, process streamlining


17

Targets

Reasons

Tools

Hungary: Solidify client relationships to maintain market pre-eminence

Aggressive attacker

Attacker Incum-bent

Generalist

Focused

Specialist

Str

ate

gic

po

sit

ion

ing

Market dynamics

Key actions for 2007

• Launch credit protection program for retail clients in trouble

• Upgrade investment product portfolio/sales effectiveness/advisory capability

• Expand corporate sales effectiveness program

• Launch treasury sales program

2007–2010 strategic objectives

• Retain solid overall market leadership with ~20% ROE

– Reinforce retail dominance through improved customer experience and already efficient processes

– Strengthen position in wholesale through sales intensification, revenue management

Pre-tax profitEUR billion

0.71

2006

0.99

2010E

CAGR: 9%


18

Targets

Reasons

Tools

Russia: Aggressively expand in consumer finance, mortgage

Aggressive attacker

Attacker Incum-bent

Generalist

Focused

Specialist

Str

ate

gic

po

sit

ion

ing

Market dynamics


• Run sales trainings, implement sales effectiveness toolkit

• Open ~40 branches, expand agent network

• Launch mortgage and combined products• Review and upgrade retail/corporate rating

system


• Turn into a leading retail mortgage and consumer finance player through expansion and efficiency gains

• Expand in mid-corporate segment through state-of-the-art loan process, product development and sales network


0.34

0.02

2006 2010E

CAGR: 98%


19

Targets

Reasons

Tools

Ukraine: Attack in affluent segment


• Develop country-wide branch, partner and agent networks

• Enlarge affluent product/service range (e-banking, easy-to-use C/A services)

• Grow rapidly in SME/local corporatesthrough comprehensive product/service offering


• Build 76 new branches and a nationwide network of agents

• Develop investment and Private Banking value proposition

• Streamline corporate credit process

Aggressive attacker

Attacker Incum-bent

Generalist

Focused

Specialist

Str

ate

gic

po

sit

ion

ing

Market dynamics


0.25

0.07

2006 2010E

CAGR: 39%


20

Targets

Reasons

Tools

Bulgaria: Continue unique success story, maintain no. 1 position in retail

Aggressive attacker

Attacker Incum-bent

Generalist

Focused

Specialist

Str

ate

gic

positio

nin

g

Market dynamics


• Maintain market leadership in retail through further improved service/sales

• Achieve top 3 position in wholesale through full product portfolio, streamlined credit process


• Increase sales effectiveness through training and motivation

• Introduce CRM-based campaign management

• Streamline wholesale credit process


0.21

0.10

2006 2010E

CAGR: 22%


21

Targets

Reasons

Tools

Romania: Become significant retail/SME player, achieve sound profitability


• Step-up sales focus in retail, concentrate on mass/upper mass segments

• Focus corporate banking strategy on micro, small, medium corporate and project finance

• Continue with cost-effective network development, centralize for economies of scale

Key actions for 2007• Enhance consumer loan cross-sell • Launch innovative retail products (e.g.

mortgages, deposits), develop private banking

• Expand sales network: new branch models; countrywide merchant acquisition, agents/partners

• Step-up corporate sales capabilities, set up project finance

Aggressive attacker

Attacker Incum-bent

Generalist

Focused

Specialist

Str

ate

gic

positio

nin

g

Market dynamics

Pre-tax profitEUR million

2010E

CAGR: n.a.

2006

-0.01

0.07


22

Targets

Reasons

Tools

Croatia: Focused champion in mass retail, SME

Aggressive attacker

Attacker Incum-bent

Generalist

Focused

Specialist

Str

ate

gic

po

sit

ion

ing

Market dynamics

2007–2010 strategic objectives• Strengthen retail position through product

upgrade

• Modernize branch network, broaden e-channels

• Ramp-up operational efficiency in branch network and administration

• Expand in SMEs through focused service/product offer


• Develop specific products for Retail, SMEsegments (bundles, cards, cash-pooling, etc.)

• Develop/renovate branch network and establish outbound call-center

• Upgrade domestic payment system

• Improve loan process


33

17

2006 2010E

CAGR: 19%


23

Targets

Reasons

Tools

Slovakia: Concentrate on profitable core


• Increase retail market share through improved sales force effectiveness

• Further strengthen position in mortgage, develop consumer finance base

• Exploit profitable SME subsegments, secure top position in municipalities

• Further rationalize operations


• Launch sales trainings, outbound call center

• Optimize credit risk management criteria for retail lending, fine-tune housing loans process

• Launch credit card• Develop wholesale value proposition for

sub-segments with potential

Aggressive attacker

Attacker Incum-bent

Generalist

Focused

Specialist

Str

ate

gic

positio

nin

g

Market dynamics


27

6

2006 2010E

CAGR: 46%


24

Targets

Reasons

Tools

Serbia: Focused expansion after full integration

Aggressive attacker

Attacker Incum-bent

Generalist

Focused

Specialist

Str

ate

gic

positio

nin

g

Market dynamics


• Close smooth/successful merger process

• Emerge as a key retail/SME player through upgraded product offering, modernized/efficient sales channels


• Finish legal/technical merger steps

• Launch unified retail/SME product offer (C/A, consumer finance, mortgage, cards)

• Renovate 40 branches, upgrade agent network, launch e-channels

Pre-tax profit targetsEUR million

62

24

2006 2010E

CAGR: 27%


25

Targets

Reasons

Tools

Montenegro: Sustained market dominance by improving sales and offering superb service

Aggressive attacker

Attacker Incum-bent

Generalist

Focused

Specialist

Str

ate

gic

positio

nin

g

Market dynamics


• Exploit incumbent position through

– sales intensification

– product innovation

– leveraging OTP and DSK know-how


• Conduct nationwide sales training

• Introduce retail home equity loans and SME mortgages

• Launch project finance to capture EU funding opportunity

• Develop innovative e-banking services

Pre-tax profit targetsEUR million

17

4

2006 2010E

CAGR: 40%


26

Targets

Reasons

Tools

Strong, highly motivated local management teams ensure success

• 80% from local countries

• Average experience of CEOs 10+ years

• Ambitious individuals

• Hungarians mainly to Risk and CFO positions

Highly experiencedlocal leadership

• Profit-sharing program rewarding over-achievement of targets

• Group-wide stock option plan

Performance-basedincentives ensuringhigh motivation

• Chairmen of Supervisory Boards/Boards of Directors from senior management of OTP Bank Hungary

• Dedicated staff to support Chairmen

Secure ownership control

OTP is the only banking group in CEE whose topmanagement team holds decades of successful local experience


27

Targets

Reasons

Tools





Direct incentives

• The primary responsibility, accountability and authority lie with local top management familiar with local circumstances, with formal control through ownership structure and functional control (risk management, controlling, compliance, internal audit)







28

Targets

Reasons

Tools

Strong, cross-country best practice sharing is already part of OTP Group’s everyday life

Selected topics of know-how transfer among OTP Group members

EXAMPLES

CEE region as defined by OTP Group

Russia

Ukraine

Slovakia

Hungary

Croatia

RomaniaSerbia

BulgariaMontenegro

• IT development methodology

• Sales force effectiveness

• Branch ope-ration

• FX mortgage product design

• POS loan product development

• Agent network build-out

• Branch build-out• Mortgage

development• Sales finance product

development• Cross-sell

effectiveness• Investment products

development• CRM system design• IT procurement

Hungary

• Branch build-out

• Cross-sell effec-tiveness


29

Targets

Reasons

Tools

By following this ambitious strategy, OTP Bank can be among Top 20–25 European players by 2010

10

2006

European league of banking by market capitalization – Estimated

Market capitalization of OTP BankEUR billions

EU 2007 Jan1.2.3.4.5.6.7.8.9.

10.11.12.1314151617181920212223242526272829303132333435363738394041424344454647

48

HSBCUBS 'R'ROYAL BANK OF SCTL.GP.BNC.SANTANDER CTL.HISP.BNP PARIBASING GROEP CERTS.BARCLAYSUNICREDITO ITALIANOBBV ARGENTARIACREDIT SUISSE 'R'HBOSSOCIETE GENERALEDEUTSCHE BANKSBERBANK OF RUSSIALLOYDS TSB GROUPCREDIT AGRICOLEABN AMRO HOLDINGGENERALIFORTIS (BRU)INTESA SANPAOLOKBC GROUPEAVIVANORDEA BANKDEXIADANSKE BANKCOUNTRYWIDE FINL.ALLIED IRISH BANKSCOMMERZBANKCAPITALIAERSTE BANKBANK OF IRELANDBANCO POPULAR ESPANOLNATIONAL BK.OF GREECERAIFFEISEN INTL.BK.HLDG.SEB 'A'MEDIOBANCASVENSKA HANDBKN. 'A'DNB NORSWEDBANK 'A'PKO BANKBANCA MONTE DEI PASCHIBANCO ESPANOL DE CREDITOEFG EUROBANK ERGASIASDEUTSCHE POSTBANKAKBANKBCP 'R'PEKAO

OTP Group

989490787571706665646054504848474343653532312424202019191917

17

16

17

17

151515141212121111101010

10

~25+

2010

Without major acquisition

P/EEPS (EUR)

~13X~3 ~6

~16X

Successfulimplementationof regionalstrategy andstabile long-term growthpotential willsupportsubstantial valuation

EU 2010 DecABCDE…...……………...……………...

OTP Group

1.2.3.4.5.6.7.8.9.

10.11.12.13141516171819

20–25

……

25

…

……

…

……

…

…

…

…

……

…

……

160


30

Targets

Reasons

Tools

This model will enable the further expansion of OTP Group

Greenfield building of new business, leveraging

existing strengths

Targeted banking acquisition in markets with significant upside

Acquisition into new businesses

Transformation and Integration of the Foreign Subsidiaries


Dr. László Urbán, CFO

2


First investor day in OTP Group history marks the beginning of a new era

• Exclusive focus on Hungary• Absolute dominance in Hungary

through product/channel and sales development

• Market share 23.4% (2001)• Profit growth >300%

(1995–2001)• C/I: 60.4% (2001)

• Acquisitions in Slovakia, Bulgaria, Romania, Croatia, Serbia, Russia, Montenegro, Ukraine

• DSK Bank first major international success: 340% profit growth 2003–2006

• Focus still on Hungary: internatio-nal businesses contribute 14% of profit (2006)

Fundamental shift in business model:• 50% of 2010 profit to come from

foreign group members• Tailor-made strategy developed

for each foreign subsidiary• New group management model

introduced1995

2001

2007

Solidifying Hungarian dominance

Shift towards high growth CEE markets

Intensive exploitation of international opportunities

OTP to be operated as a diversified, Central-European

financial group

3


Well-defined targets, solid capital/risk position, appropriate CAPEX and strong incentives are the basis of ambitious 2010 plans

Financialtargets

OTP Group will reach EUR 2 billion pre-tax profit in 2010 with • A focused strategy resulting in 25%+ ROE, 48% C/I• Capital adequacy 0.5–1% above regulatory requirement; retained earnings

invested in 20%+ ROE businesses

Riskmanagement

• Only moderate increase in risk profile due to 2006 expansion (non-performing ratio: 4.5% of loan portfolio)

• Expected to remain steady until 2010 (1.2–1.4% risk cost per average loan between 2007–2010)

CAPEX(branch, IT)

• ~650 new OTP Group branches abroad until 2010, bringing total to ~1,900• Continued investments in IT (EUR 60 million abroad in 2007)

Incentives A new profit-sharing scheme will incentivize OTP Bank and subsidiary managers tosurpass stretched subsidiary targets

4


OTP Bank aims for ~3.7% market share in Central-Eastern Europe (outside Hungary) by 2010

Financial

targets

Risk costs

CAPEX

(branch, IT)

Incentives

Russia

Ukraine

Slovakia

Hungary

Croatia*

Romania

Serbia*

BulgariaMontenegro*

2010 market size (banking assets), OTP Group targetmarket share (EUR billions, percent)

OTP Groupmarket share inCentral-Eastern

Europe, outside Hungary

2010 market size

OTP Group targetmarket share

2.1

7.2

21.3

5.5

4.2

Source: McKinsey; OTP Bank

X

1,704

238

5.3

155

26.1

156

84

4.8

84

34

675 37.1

3.72.5

20102006

5


In focus: Consumer finance in Russia, Ukraine, Bulgaria; mortgage in Ukraine; deposits in Bulgaria, Russia; wholesale in Ukraine

Financial

targets

Risk costs

CAPEX

(branch, IT)

Incentives

Potential scale of each OTP group member’s aspiration by main products,

revenues after risk cost, 2010

Multi EUR 100mn

EUR 100mn

Multi EUR 10mn

EUR 1mn

EUR 10mn

Consumer finance Mortgage

Transaction and Deposits

Investment and Insurance Wholesale

Russia

Bulgaria

Croatia

Slovakia

Serbia n/a

Romania

* Sales and trading asset management

Ukraine

Montenegro

Other wholesale*

n/a

n/a

6


To reach EUR 2 billion profit by 2010, OTP Group will grow its balance sheet to ~ EUR 65 billion, targeting 25%+ ROE

Financial

targets

Risk costs

CAPEX

(branch, IT)

Incentives

P&L(EUR billions)

Key performanceIndicators (percent)

2006

56.4

28.0

3.0

0.7

2.9

48.1

2010

26.1

2.8

1.4

3.9

2006

1.8

1.2

0.8

0.1

1.7

0.4

2.0

0.7

2010

4.0

2.4*

2.0*

0.6

3.4

1.0*

4.5

1.6*

Net interestand fee income

Risk cost

Revenue afterrisk

Other revenue

Total revenueafter risk cost

Non-interestexpense

Pre-tax profit

After-tax profit

Total customerloans

Provision onloan losses

Tangible assets

Financial andother assets

Total assets

Total customerdeposits

Other liabilities

17.8

16.8

-0.5

0.7

10.2

28.3

4.1

28.3

7.3

2006

49.0

31.2

-1.9

1.2

16.6

64.9

8.9

64.9

24.8

2010

Balance sheet(EUR billions)

Equity and sub-ordinated loan

Total liabilities

C/I

After-tax ROE

After tax ROA

Risk cost peraverage loan

Provision/loans

OTP Group, consolidated

2007

2.3

1.7

1.0

0.2

2.1

0.6

2.7

0.8

23.0

19.4

-0.8

1.9

11.4

35.5

4.8

35.5

11.3

2007 2007

57.1

24.8

2.6

1.2

3.5

* Including profit from reinvestment of retained earnings

7


Financial

targets

Risk costs

CAPEX

(branch, IT)

Incentives

OTP Group will rely on a mixture of funding sources, probably dominated by EUR bonds

Preferences in funding (size of circles reflects realistically available size of funding)

Based on availability, cost and risk impact, a clear priorizationof funding sources can be defined

High

Low

All-in Cost

HighLow

Risk and Difficulty in feasibility*

Local (Russia) securiti-zation

Group-level securiti-zation

Local bond

HUF bond

WEU partner-

shipOTP

syndication

Local IB

CEE acquisi-

tion

WEU acquisi-

tion

1st choice

• 3rd choice

OTP IB

EUR bond

2nd choice

OJBHUFCMB

OJBinternatio-nal CMB

* Liquidity risk, maturity mismatch, counterparty risk, business risk (in case of acquisition)

8


9.9

9.9

2006

0.3

9.4

9.7

2010

OTP Group to maintain capital adequacy levels 0.5–1% above regulatory requirement

Financial

targets

Risk costs

CAPEX

(branch, IT)

Incentives

Capital adequacy ratio(percent)

4.3

5.6

9.9

2006

3.9

5.6

9.5

2010

2.9

19.4

22.3*

2006

10.0

10.0

2010

12.2

9.7

2.51.0

11.3

12.3

2006 2010

1.1

10.9

12.0

2006

10.8

10.8

2010

11.0

7.2

3.81.4

9.4

10.8

2006 2010

5.1

7.1

12.2

2006

0.2

11.6

11.8

2010

2.1

10.9

12.9

2006

12.5

12.5

2010

7.9

21.4

29.3

2010

0.3

31.1

31.4

2006

Tier 2

Tier 1

Regulatory capital adequacy ratio

OTP Bank**,Hungary

OBS, Slovakia

OBR, Romania

ISB, Russia

CJSC OTP, Ukraine

OBH, Croatia

DSK, Bulgaria

OTP, Serbia***

CKB, Montenegro

* Until 2006 December, local regulation maximized foreign denominated assets at 300% of capital, which necessitated artificially high capital level at OBR. Regulatory requirement 12% in 2006.** Tier I ratio calculated by subtracting Deductions proportionately from Tier I and Tier II

*** Reflects capital structure of Kulska and Niska Banka; regulatory requirement on capital injection due to hyperinflation results in high capital levels. Current reserving requirements on liabilities make subordinated debt a preferred source of funding, increasing Tier 2 proportion by 2010

8%10%

12%

12%

9


Financial

targets

Risk costs

CAPEX

(branch, IT)

Incentives

Additional capital to be investedEUR millions

~1.5 billion additional capital (including EUR 450–500 million retained earnings) to be invested at ~15% medium term ROIC

OTP dividend practice

30% of OTP Bank after-tax profit (HAS) used to be distributed

ESTIMATE1402007

1602008

1802009

4802007–2009 total

800Additional subordinated capital*

265Additional capitalrelease

~1500Total

Additional investments including retained earnings to boost OTP Group value creation

• Unique, “once in a lifetime”growth environment in CEEmarkets

• OTP to keep open the option of pursuing additional growth opportunities with medium term ROIC ~15%, including

• Further expansion in existing businesses

• New business lines (both green-field and acquisitions)

Potential dividend

according to “30%

rule”

Maximizing capacity to take on sub-ordinated capital

Requirement to hold additional capital for lending to Ukraine may be cancelled

10


OTP Group applies a standard “toolkit” to implement its risk management strategy

Financial

targets

Risk costs

CAPEX

(branch, IT)

Incentives

OTP Group credit risk management “toolkit”

Standardized riskmanagement

processes acrossOTP Group

Organization:clearlydefined

competen-cies,

business/riskseparation

Standardizedregulation alignedwith Basel II., local

requirements

Group-widestandards in

portfolioreporting

Riskmanagement IT

supportintegrated into

credit processes

ContinuousKnowledge

management,regular

workshops,HelpDesk

11


6 79

44

43

7

10

2006 acquisitions did not change significantly the portfolio concentration or portfolio quality

Financial

targets

Risk costs

CAPEX

(branch, IT)

Incentives

2007

23CAGR:33%

13

2005

18

2006

Foreignsub-sidiaries

Domesticsub-sidiaries

OTPBank

Portfolio developmentLoans to customersEUR billions

Portfolio concentration

2007

2005

27%

Retailconsumerfinance

31%

Retail mortgages

42%

Whole-sale banking

Portfolio quality (NPL), OTP Group

23%

Retailconsumerfinance

37%

Retail mortgages

40%

Whole-sale banking

3.6%

2005

4.5%*

2006

* Corrected according to OTP standards

12


Risk costs

CAPEX

(branch, IT)

Risk cost levels are planned to grow only moderately until 2010 due to prudent risk management practices and beneficial structural change

Financial

targets

Incentives

2006 2007 2008 2009 2010

Risk costper averageloan(Percent) 0.70

1.21 1.38 1.41 1.39

Provision on loan losses per loans(Percent)

Factors influencing risk costs, 2007–2010

• Russian, Ukrainian lending’s growing share• Growth in retail exceeds wholesale • Mortgage volume significant in retail

2.853.49 3.48 3.75 3.94

13


~200 branches are being built in 2007 across the Group with another 200 refurbished

Financial

targets

Risk costs

CAPEX

(branch, IT)

Incentives

0

0

30–35

~5 ~15

~8<5

~45

<5 70–75 ~75

~80

~10

~125

40–45 40–45

30–35 20–25 50–55

~30 10–15 40–45

30–35

~5

~10

~10

200–210 190–200 ~400

~5

Total

Additional 60–65 rep. offices, ~5 VIP branches to be opened in 2007

Refurbishment

Ukraine

Russia

Bulgaria

Romania

Serbia

Croatia

Slovakia

Montenegro

Hungary

New branches

Required CAPEX:~EUR 130 million

14


OTP Group will extend its branch network by around 650 branches in the next 4 years

Financial

targets

Risk costs

CAPEX

(branch, IT)

Incentives ~650

<5

<5

25–30

0

20–25

130–135

170–175

280–290

Net increase in branch network

Number of branches

Ukraine

Russia

Bulgaria

Romania

Serbia

Croatia

Slovakia

Montenegro

Subsidiary total

Required CAPEX: ~EUR 440 million*• EUR 130 million in 2007*• EUR 150-200 million in 2008*

* Including renovations

15


Risk costs

CAPEX

(branch, IT)

Upon completion of branch expansion, OTP will cover the region with ~1,900 branches

Financial

targets

Incentives

Russia

Ukraine

Slovakia

Hungary

Croatia RomaniaSerbia

BulgariaMontenegro

260–270

200–210

320–340

390–400

110–115

90–110

70–75

~420

25–35

2010 number of OTP banking group branches in the CEE region

Still a specialist approach outside Hungary and Bulgaria in competitive comparison

16


OTP Group will invest significantly into the IT systems of foreign subsidiaries

Financial

targets

Risk costs

CAPEX

(branch, IT)

Incentives

2007 IT CAPEX (EUR millions)

10

10

5

5

5

5

20

~60<1

All subsi-diaries

Most important developments

• Branch equipment for new/refurbished locations

• Extension of ATM/POS networks

• CRM and data warehouse developments

• New product developments

APPROXIMATEFIGURES

Ukraine Russia Bulgaria Romania Serbia Croatia Slovakia Monte-negro

17


Group-level executive incentive scheme consists of four elements, creating a dynamic interest system

Financial

targets

Risk costs

CAPEX

(branch, IT)

Incentives

Option

Premium

Partly depending on foreignsubsidiaries’ performance

OTPDeputy

CEO

OTP head ofdepartment/

Seniorexpert Incentive

elements

OptionShare-pricegrowth

Profit-sharingOver-achievement ofstretched sub-sidiary targets

Premium X times monthlysalary

Base salary Fix

Principle

RESULT +PERFORMANCE(individual KPI)

RESULT +PERFORMANCE(individual KPI)

PERFORMANCE

FIX

Sharepricedriven

Predictability

Full dependence on foreignSubsidiaries’ performance

New elementlinked to foreignsubsidiaries

Profit-Sharing*

Basesalary

SubsidiaryCEO/

Deputy CEO

* At 5–10% average overperformance

18


Aim of new profit-sharing program is to directly incentivize over-achievement of stretched targets

Financial

targets

Risk costs

CAPEX

(branch, IT)

Incentives

Principles of profit-sharing program

Result driven: Incentivizes for over-achievement by directly rewarding subsidiaryexecutives and indirectly group-level executives and experts

Robust/Transparent: Pre-defined level of profit-sharing, pre-defined frameworkand minimum-requirements (KPI), when allocation is not automatic

Fair: All subsidiaries covered to the same extent, driven by same principles

Proportional: Represents significant, but not over-weighted part of executiveincome – in case of bigger bank, higher number of participants involved ensuresproportional individual share

Flexible: Annual re-parameterization of individual rewards based onperformance by decision of CEO, SB or LIIB*

* Subsidiary Integration and Management Committee


OTP Banking Group – International Management Model

Mr. László Bencsik, Managing Director Planning and Controlling, LIIB Secretary


2

Dual-logic organizational structure needed to reach maximum value-creation from Group-level synergies

Business management model1

Relevant areas

• Retail• Corporate• Sales and

Marketing

Core model

• In core businesses, subsidiary management is in charge and responsible for performance

• At HQs, strategic direction, targets and major elements of the business model are set as a result of intense discussions with subsidiaries’ management

• In order to support the agreed strategy• Selected larger initiatives – ”action tasks” – are supported

and managed (if needed) from HQ• Intra-group knowledge/experience sharing/ transfer is

assured through knowledge forums at business expert level

Functional management model2

• Risk management

• Strategy• Controlling

and planning• Accounting• Internal audit• Compliance• Bank security• HR• IT

• Functional OTP Bank leaders have clearly defined organizational authority, direct (decision-making) and indirect (prescribing policies and procedures) power

• Development and operations of existing IT systems done locally except if the application is provided from a central unit. New implementation typically supported from HQs

Hub and spoke operational model under development for treasury, project finance

Targets

Reasons

Tools





Direct incentives

• The primary responsibility, accountability and authority lies with local top management familiar with local circumstances, with formal control through ownership structure and functional control (risk management, controlling, compliance, internal audit)







3

• Responsible for group-level business line performance reflected in incentives

• No direct authority over subsidiary lines of business

• Dos: Information gathering, opinion sharing, project management

• Don’ts: Have direct authority over subsidiary experts

Country managers’ main tasks

• Monitor the completion of action plans at subsidiary level

• Signal issues to Board/Chairman

• Coordinate the support of various OTP Bank/other Banking Group member areas to the subsidiary

• Prepare Board meetings

• Coordinate the dissemination of Board decisions/results

• Chairman responsible for subsidiary’s overall targets, action plan

• Board members responsible for subsidiary’s certain business/functional area as distributed by Chairman

Local CEOs and management are the cornerstones of the business management model, supported by governing bodies and OTP experts

• Full responsibility for subsidiary P&L and operations

OTP BankCEO

OTP BankChairman and CEO

Head of LoBHead of LoBHead of LoBHead of LoBOTP Bank

Business experts

Business expertsBusiness experts

Business Experts OTP Bank

Business expertsBusiness expertsBusiness expertsBusiness experts

Chairman of Supervisory Board/Board of Directors

Chairman of Supervisory Board/Board of DirectorsChairman of Supervisory Board/Board of Directors

Chairman of Supervisory Board/Board of Directors

Staff for SB/BoDCountry manager

Staff for SB/BoDCountry managerStaff for SB/BoDCountry manager

Staff for SB/BoDCountry manager

Subsidiary CEOSubsidiary CEOSubsidiary CEOSubsidiary CEO

Subsidiary Head of LoB

Subsidiary Head of LoBSubsidiary Head of LoB

Subsidiary Head of LoB

• Initially focus on transfor -mation management through monitoring action plans later on concentrate on group -wide initiativesServe as an escalation forum (in specific cases)

•

Coordinate horizontal and vertical axes of matrix

LIIB

Best practice sharing in knowledge forum

Actual project tasks based on LIIB program

• ……• ……• ……• ……• ……





• ……• ……• ……• ……• ……

• ……• ……• ……• ……• ……


4

~120 subsidiary action plans and 12 group level projects have been defined for 2007 and will be monitored monthly/quarterly; knowledge forums kicked off with >400 participants

Subsidiary action plans Group-level projects

• Tasks to be completed by subsidiaries

• In order to reach 2007–2010 financial targets

• Assisted by other banking group members

• Banking-group level efforts requiring coordinated solutions

• Directed from OTP Bank Hungary with the participation of banking group members

Description

Russia

Ukraine

Bulgaria

Romania

Croatia

Slovakia

Serbia

Montenegro

Number of action plan ideas

6 (projects)

15

12

12

20

16

21

18

Number of projects

Regional Business initiatives

7

Risk Manage-ment

3

Strategy andFinance

1

HR1

BDP-OPR048-20

RUSSIA – 2007 ACTION PLAN (1/3)

2007 key actionsOperativeResponsible

KPI

1 Expand POS agents network

• Fedoseeva/Krotov

Timeline

2007 Mar

2008 Jan Variable Value

OTP Bank Hungary assistance required

Organizational unit Name

Required activity

• – • –

2 Launch mortgage

• Arzantsev/Suniaev

• Retail Directorate

• ImreNémeth

• Consul-ting

3 Retail network expansion

• Suniaev/Brilev

• Investment Department

• Marketing and Sales Directorate

• Bank Security Directorate

• ZoltánSzrenkó

• Gabriella Balogh

• TiborGumilár, Sándor Csia

• Consul-ting

• Training

• –

DEFINED IN

DETA

IL

LIIB cockpit, June 27th, 2007

Countries

Group-wide projects

LIIB action needed

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Regional business

Risk mana-gement

Strategy and Fin.

HR

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Regional business

Risk mana-gement

Strategy and Fin.

HR

Monitored by LIIB* once a month

Monitored by LIIB* once a quarter

* Subsidiary Integration and Management Committee

6 knowledge forums already startedin Q1 2007 with >400 participantsfrom CEOs to operational level


Unique growth opportunity in the CEE regionMacroeconomic and financial market outlook

Mr. Tamás Schenk, director, Strategy and Economic Research DirectorateMr. Tamás Vojnits, chief economist

2


Central-Eastern Europe and Russia were the fastest growing banking markets in the last five years – there is a good chance to preserve the momentum

2000 2005 Regional profit pool 2005

Regional revenues

……CAGR 2000–2005 Revenue CAGR below 7%








675

1,036

9.0%

9878

4.7%

232 222

-0.9%

228143

9.8%

5125

15.6%

2217

5.0%

North America

Western Europe

Middle East

Japan

Asia

Latin America Australia

Africa

293293

1919

158158

3939

6767

2424

Global revenue poolUSD billions

1,6662,438

7.9%

33

5525

17.1%

1313

3213

19.3%

CE Europe

88 2.514.1

41.0%

Russia33

627627

HEAT MAPS: 2000–2005 REVENUES AFTER RISK COST; 2005 AFTER-TAX PROFITS; REVENUE CAGR 2000–2005USD billions, percent

455

681

8.4%

Source: McKinsey

3


Key drivers of banking business growth are in place in all markets

Retail banking • Increasing household income and strengthening confidence• Delayed consumption and purchase of durables – now exercised• Important institutions in operation and key legislation in force⇒ Fast loan penetration growth with slower increase in interest

burden relative to income⇒ Massive accumulation of wealth with diversifying portfolios

Wholesale banking• Export and investment growth fuel credit demand• SMEs gain foothold and have so far been financed mostly by equity• EU funds become available in some countries⇒ Double-digit corporate lending volume growth

• Strong (mostly 5%+) real economy growth fuelled by domestic consumption and export

• Managed and decreasing inflation opens room for interest rate decrease

Economicgrowth

Deepening offinancialintermediation

• Higher interest rate environment than in Western Europe• Low per capita volumes and heavy investments limit margin erosion• Market development still before commoditization phase• Relatively low fee revenues, negative deposit margins in some

countries

Moderatemargincompression

CEE region’s* banking

revenues after risk cost

expected to grow by 23% CAGR

till 2010

* CEE countries in OTP universe only

4


Strong and robust economic growth expected in most CEE countries

-4-202468

10

04 06 08F 10F

Household consumption growth (Percent)

0

5

10

15

20

04 05 06 07F 08F 09F 10F

Export growth (Percent)

GDP growth (Percent)

5.1

4.2

3.3

2.4

3.9

4.94.2

06 09F07F052004 10F08F

-4-202468

10

04 06 08F 10F

Consumption growth (Percent)

0

5

10

15

20

04 05 06 07F 08F 09F 10F

Export growth (Percent)

GDP growth (Percent)

6.8

4.9

6.65.8 5.6 5.3 5.3

2004 05 06 07F 08F 10F09F

Hungary CEE8* average

Hungary

Hungary

CEE8

CEE8

* CEE8: countries of OTP’s foreign subsidiaries; non-weighted, averageSource: Eurostat, National statistics, OTP

5


Managed decrease of inflation creates room for interest rate cuts

02468

101214161820

2004 05 06 07F 08F 09F 10F

Inflation and HUF reference rate(Percent, annual avg)

Hungary

02468

101214161820

2004 05 06 07F 08F 09F 10F

Inflation and LOC reference rate(Percent, annual avg)

CEE4

Inflation

Interest rate

Russia

Ukraine

Romania

Bulgaria

* CEE4: Russia, Ukraine, Bulgaria, RomaniaSource: Eurostat, National statistics, OTP

6


Past years’ high wage growth contributed to strong consumer confidence – except in Hungary…

Bulgaria

Ukraine

Romania

Russia

Hungary100%

150%

200%

250%

300%

2003 2005 2007 2009

Net real wage growth(2002=100%)

Consumer confidence indices(point)

Bulgaria

Romania

Hungary

Russia(Rhs)

-60

-50

-40

-30

-20

-10

0

01/2

005

03/200

5

05/200

5

07/200

5

09/200

5

11/200

5

01/2

006

03/2

006

05/200

6

07/200

6

09/200

6

11/200

6

01/200

7

03/2

007

85

87

89

91

93

95

97

99

101

103

105

Source: Eurostat, National statistics, OTP

7


… where loan demand is relentless despite falling consumer confidence

Hungary:Retail loan flows in percent of GDP (12-month rolling) and consumer confidence

Source: GKI, KSH

8


Consumption delayed for decades will likely lead to higher household expenditure in the following years

14151299Computers

Penetration of selected durables/assets (in percent of population, 2005/2006)

201638

1617Passengercars

3937473530

Ukraine Bulgaria Romania Hungary

Owner occupied dwellings

Russia

30–120

Germany–Spain

45–60

Spain–Italy

25–35

Spain–Portugal

EU benchmark

16.05.66.60.83.1

Credit cardsper capita

Retail penetration of lending products (Percent, 2005/2006)

18,63,95,5 n/a n/a

Personal loansper capita

20,0

2,02,20,40,2

Russia Ukraine Bulgaria Romania Hungary

Mortgage loansper owner occupied dwellings

25–60

Spain–Portugal

20

Germany

40-50

Portugal-GermanySource:EIU, Hypostat, statistical offices, national banks, McKinsey; OTP

9


Key institutions and pieces of legislation necessary for bankingoperation are in force

Status of major institutional/legislation elements of banking

Major elements

Deposit insurance

Credit bureau

Mortgage foreclosure

Asset management

Pension system

Up-to-date legislationOperating conditions given, but further development neededBasic regulation needed

Ukraine Bulgaria Romania Hungary Russia

Source: National legislations, OTP

HIGH LEVEL

10


Retail loan penetration is expected to increase by around 12 ppt until 2010

Retail loan flows(Percent of GDP)

Retail loan penetration(Percent of GDP)

Annual new debt creation of 4-6% … … still leaves us with moderate stock/GDP levels

Source: Eurostat, OTP

11


The increase in retail loan penetration has been accompanied by rising shares of mortgage loans in many markets, …

Retail loan penetration and weight of mortgage loans, 2005

Source: McKinsey, OTP

12


… and we expect similar trends to play out in CEE countries

2006

2011

Retail loan penetration and weight of mortgage loans, 2006-2011


13


Retail lending is expected to grow at over 30% CAGR in Russia, Ukraine and Romania till 2010

3,431

2,715

6,146

2006

6,299

4,454

2010

10,753

Mortgage loans

Consumer loans

Hungary

16%

13%

…% CAGR 2006–2010

1,831

306

2,137

2006

6,261

2,029

8,290

2010

Russia

36%

60%

24

79

2006

161

104

265

2010

55

Ukraine

31%

6

4

10

2006

11

15

26

2010

Bulgaria

39%

29

15

44

2006

89

53

142

2010

Romania

32%

36%45%

17%

Volume of retail loans, local currency

15% 40% 36% 27% 34%

Source: National Banks, McKinsey, OTP

14


* CEE8 countries: countries of OTP’s foreign subsidiariesSource: National banks, OTP

The interest burden of households will increase from 2.5% of GDPto around 3.5% of GDP till 2010

2.92.6 2.7

04 07F 10F

3.0

0.71.8

04 07F 10F

3.8

1.1

2.6

04 07F 10F

3.8

0.5

2.8

04 07F 10F

3.5

1.12.1

04 07F 10F

3.4

0.9

2.5

04 07F 10F

Ukraine Bulgaria Romania Hungary Russia CEE8* average

Portugal (2004)

Spain (2004)

4.4

3.0

• Increasing disposable income• Increasing retail loan penetration• Increasing share of mortgage loans• Longer average maturity of loans• Moderate compression of margins

Key drivers of interest burden

ESTIMATES

Interest burden of households as % of GDP

15


Income growth fuelled gross savings will keep net saving rates positive

Gross savings

Net debt creation

Net savings

3.43.12.72.1

2.8

4.2

2.3

2004 05 06 07F 08F 09F 10F

Hungary

8.77.9

5.95.2

8.08.8

7.4

2004 05 06 07F 08F 09F 10F

5.34.8

3.23.1

5.24.65.1

09F 10F06 07F 08F2004 05

Gross savings

Net debt creation

Net savings

1.11.11.21.52.62.3

1.4

2004 05 06 07F 08F 09F 10F

CEE8* average

6.16.26.67.1

8.9

6.2

4.0

2004 05 06 07F 08F 09F 10F

5.15.15.45.66.3

3.92.6

2004 05 06 07F 08F 10F09F

Gross savings and debt creation of households (Percent of GDP)

* CEE8 countries: countries of OTP’s foreign subsidiaries; non-weighted, averageSource: National banks, OTP

16



Retail savings are expected to grow in the range of 15-30% CAGR in OTP’smajor foreign markets till 2010

5,995

3,367

3,887

13,249

2006

8,220

4,905

2010

20,917

7,792

Insurance

Investment

Deposits

Hungary

8%

10%

19%

…% CAGR 2006–2010

923

3,845

145

4,913

2006

8,584

771

3,746

13,101

2010

Russia

22%

52%

42%

20

106

2006

265

27

8

300

2010

104

Ukraine

26%

102%

4

15

15

1

17

2006

27

4

35

2010

Bulgaria

17%

29%6

43

22

2

67

2006

78

37

121

2010

Romania

16%

13%

28%

88%

31%

Volume of retail savings, local currency

12% 28% 29% 19% 16%

17


Source: National Banks, OTP

Corporate loan flow forecasted at ~4.5% of GDP,which translates to near 20% average volume growth

Hungary

Bulgaria

Ukraine

Romania

Russia

0

10

20

30

40

50

60

2004 2005 2006 2007F 2008F 2009F 2010F

Corporate loan penetration (Percent of GDP)Export is expected to grow by ~10%

Investment growth rates to stay double digit

SMEs with poor bank usage today are likely to strengthen

The region expects EUR 40bn from EU funds

18



Although a decline in margins seems unavoidable, the region is likely to preserve some of its margin advantage

3.62.3

4.73.0

4.7 5.0 5.4

2.33.1

HU SK BG CR U RU SE CZ PL

Net interest margin of the banking system, %, 2005

Major factors limiting margin narrowing• Higher interest rate environment than in Western Europe• Low per capita volumes, weaker scale economies and heavy

investments limits margin erosion• Market development still before commoditization phase• Relatively low fee revenues, product development with fee focus• Currently negative deposit margins in some countries

Example of mortgage loans in different marketsInterest plus fee margin compared to reference rates, OTP subs non-weighted average, benchmark market rates, percent, 2006

1.3 1.7 0.31.72.73.43.83.7

2.0-7.01.2-4.0

OT

Psu

bs

OT

Psu

bs

20

10

Cze

ch

Po

lan

d

Ind

on

esi

a

Ind

ia

Po

rtu

ga

l

Sp

ain

EU

15

ma

x

EU

15

min

OTP has entered markets characterized by relatively high margins, …

…, where several factors limit margin narrowing

19



OTP targets to obtain ~7% of the regional banking revenues

Total banking revenues after risk cost in the countries of OTP’s universe

EUR billions

ESTIMATE

3,7 6,2

24,6

59,1

20102006

CAGR13%45%

…%OTP Group’s market share in revenues

CAGR25%

Hungary

Foreign markets

Total

2.3%

8%

~40%

3.2%

~7%

28.3

65.3CAGR23%


Hungary: Incumbent’s game focusing on customer loyalty

Mr. Csaba Lantos, Deputy-CEO, OTP Bank


2

Hungary: temporary decline, but still room for further growth

Market • 4th phase of banking sector development: relationship battle• Intensified competition in retail

Bank & group

• No.1 banking group in Hungary, market leader in retail savings, mortgages, card business, e-banking, pension funds and fund management; strong positions in insurance, building society and consumer finance

Strategy

& targets

• Maintain clear market leadership through focus on customer loyalty and improving customer experience

• EUR 0.99 billion pre-tax profit target in 2010


3OTP Group in Hungary will deliver EUR 0.99 billion profit before tax through focused sales activity in retail

Aggressive attacker

Attacker Incum-bent

Generalist

Focused

Specialist

Str

ate

gic

po

sit

ion

ing

Market dynamics


• Launch credit protection program for retail clients in trouble

• Upgrade investment product portfolio/sales effectiveness/advisory capability

• Expand corporate sales effectiveness program

• Launch treasury sales program


• Retain solid overall market leadership with ~20% ROE

– Reinforce retail dominance through improved customer experience and already efficient processes

– Strengthen position in wholesale through sales intensification and revenue management


0.990.71

2010E

CAGR: 9%

2006


4

Domestic market growth expected to pick up after two-year slowdown

2

4

6

2005 2006 2007 2008 2009 2010

Real GDP growth

Percent, annual

4

6

8

2005 2006 2007 2008 2009 2010

Key interest rate

Percent, Central bank rate

Hungarian banking market – Revenues after risk cost

EUR billions

0.8 1.3

2.9

4.93.7

6.2

2006 2010E

Retail

Wholesale

CAGR: 13%

Based on penetrations and international examples, the

Hungarian market still has great growth potential in medium term


5Accommodating and facilitating domestic market development requires continuous attention and creative improvement of value proposition

• Slower growth of financial markets for the next two years: new loan origination 3% of GDP, expected to be 5-6% in 2009-10

• Savings growth decreases to 5-6% of GDP in 2007-08, grow to 8% in the following years

• New branch openings by competitors, increasing role of agents• Increase in advertisement and media spending• Intensive product development

• Significant early pre-payment of consumer loans and mortgages• More active and sophisticated card usage• Use of electronic channels• Improving knowledge of financial products

• Re-pricing of „category 1” subsidised housing loans („Forrás loans”originated between 2001-2003)

• Mortgage/home equity/secured consumer loans become the most popular loan products

Effects of fiscal strengthening

Intensified competition

Changes in customer behaviour

Shift in retail loan demand

Major external challenges


6Sustained dominant position through full-fledged financial services and well-spread distribution channels

Total assets of OTP Bank (EUR billions)

OTP Group in Hungary

17.914.212.4

10.410.1

Dec 2002

Dec 2003

Dec 2004

Dec 2005

Dec 2006

CAGR:15%

OTP Bank

OTP Mortgage

Bank

MerkantilGroup

OTP GaranciaInsurance

OTP Fund Manage-

ment

OTP Life Annuity

OTP Pension Funds

OTP Real Estate

Leasing

OTP Building Society

Branch and ATM network

• OTP: 408• Erste: 182• K&H: 168

Number of branches, EoY 2006


7

In the previous strategic period, OTP Bank focused on the maximisation of revenues...

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Banking market – Revenue after risk cost, EUR million

OTP Group Hungary – Revenue after risk cost, EUR million

OTP Group Hungary – Market share, %

0.8 1.3

2.9

4.93.7

6.2

2006 2010E

CAGR: 13%

0.7 0.80.7

2.91.5

3.7

2000 2006

0.7

1.7

2000 2006

1.72.4

2006 2010E

Retail Wholesale

CAGR: 17%

CAGR: 17%

CAGR: 9%

2006 2010E

2000 2006

40%33%32%

27%

Total

33% 31%27% 25%

Retail: - 7%

Retail: - 2%


8

... now focuses on customer loyalty, CRM and more complex corporate coverage

2007 Key actions for OTP Bank

• Revitalisation of OTP brand by introducing new logo and extensive image campaign

• Manage key moments of customer interaction to increase loyalty beyond efficient processes

• Launching customer loyalty program to strengthen brand loyalty, reducing churn

• Further development of CRM system for DM campaigns and product proposals

• Improvement of client profitability in corporate segment

• Development of investment advisory services

• Top retail value proposition

Pre-tax profit (EUR billions)

0.71 0.87

2006 2010

Gross loans (EUR billions)

CAGR: 15%

CAGR: 5%

12.4

7.1

2006 2010

Mid-term actions

• Renewal of product packages• Opening specialised branches for retail lending

and investment advisory

BANK ONLY


9

Improve service quality and cross-sale activity

2007 Key actions for OTP Garancia

• Improving position in dynamically increasing segments with stable premium income

• Improving service quality through decreasing processing period of insurance contracts

• Development of sales support of agent network

• Cooperation with Merkantil Bank and its dealer partners to boost sales of carinsurances

Pre-tax profit (EUR millions)

3363

2006 2010

Insurance reserves (EUR billions)

CAGR: 17%

CAGR: 17%

1.160.61

2006 2010


10

Strengthening market position through offering wider product range

2007 Key actions for OTP Fund Management

• Widening product portfolio: launching new investment funds, e.g. guaranteed, wider horizon

• Boosting sales of BUX ETF Fund and other CEE ETF’s

• Launching combined product

• Increasing other assets under management, e.g., pension funds

• Strategic cooperation with a global partner

Added Value* (EUR millions)

58 69

2006 2010

Assets under Management

(EUR billions)CAGR:

19%

CAGR: 4%

9.0

4.5

2006 2010

* Profit before tax + fees paid to OTP Bank


11

Retaining market position in car-financing

2007 Key actions for Merkantil Bank

• Development of new products and distribution network

• Improving quality of dealer-loans through development of partner qualification system

• Cooperation with other group members and developing cross-sale activity


3445

2006 2010

Gross loans (EUR billions)

CAGR: 12%

CAGR: 8%

1.510.96

2006 2010


12

OTP Group in Hungary: Impressive volume growth and ample profitability level

P&L and Balance sheet dataEUR billions

2006 2010

1.68 2.41

* Shareholder’s equity + subordinated debt** OTP Bank only, HAR

Total revenue afterrisk cost

0.71 0.99Pre-tax profit

0.59 0.82After-tax profit

11.17 19.01Total customer loans

11.05 14.07Total customerdeposits

4.05 6.69Equity*

17.27 28.61Total assets

Key indicators, %

2006 2010

5.1 4.5Net interest margin

56 56C/I

2.8 3.1After-tax ROA

23 19After-tax ROE

0.5 0.7Risk cost peraverage loan

9.9 9.5Capital adequacyratio**

Main challenges

• Continuously increasing competitive pressure

• Optimising funding cost on group level

OTP GROUP HUNGARY


13

* Excluding: sales and trading, asset management** Retail deposits & transactions, consumer finance, mortgage, investments and

insurance (only distribution), wholesale banking*** Interest and fees, after risk cost

Declining market shares and margin levels, but balanced revenue growth


0.71 0.99

2006 2010

Revenues after risk cost (EUR billions)

CAGR: 9%

Market share,%

• Total** • Retail banking

Margins after risk cost,%

• Total***

2733

5.9

2006

2531

4.4• Retail banking 5.7 3.6

2010

• Wholesale banking* 11 11

• Wholesale banking* 1.8 1.8

CAGR: 9%

2.411.68

2006 2010

OTP GROUP HUNGARY


Bulgaria: Continuing the Unique Success Story, Retaining Number 1 Retail Position

Ms. Diana Miteva, Head of Retail, DSK BankMs. Dorothea Nikolova, CFO, DSK Bank


2

Bulgaria: No.1 retail position in a fast growing market

Market • Balanced banking market (~50/50 retail and wholesale) with fast growth (22% CAGR 2006–2010)

Bank • DSK No.1 in retail supported by 366-strong branch network• Presence in insurance, asset management, pension, leasing

Strategyand targets

• Focus on retaining No.1 retail position with intensified sales; targeting No.3 in wholesale

• EUR 0.21 billion pre-tax profit target for 2010


3DSK will deliver EUR 0.21 billion pre-tax profit in 2010, based on strengthened sales and service quality

Aggressive attacker

Attacker Incum-bent

Generalist

Focused

Specialist

Str

ate

gic

positio

nin

g

Market dynamics


• Maintain market leadership in retail through further improved service/sales

• Achieve top 3 position in wholesale through full product portfolio, streamlined credit process



• Introduce CRM-based campaign management

• Streamline wholesale credit process


0.100.21

2010E

CAGR: 22%

2006


4

The Bulgarian market is characterized by fast and balanced growth

0

2

4

6

8

2005 2006 2007 2008 2009 2010

Real GDP growth

Percent, annual

0

2

4

6

8

2005 2006 2007 2008 2009 2010

Key interest rate


Bulgarian banking market – Revenues after risk cost

EUR billions

0.5

1.0

2010E

Retail

Wholesale

CAGR: 22%

0.5

1.0

2006

1.1

2.1

The Bulgarian market environment is compelling and provides great

opportunities for growth


5

DSK leader in competitive Bulgarian banking sector

• 30 private banks, 5 largest banks hold 80% of retail loans, 71% of profit

• DSK Bank leader in retail, with 33% share of retail loans and 23% of profit

• Highly competitive market, product-, technology- and price-wise

• Open to EU member banks, intensive mergers & acquisitions

• Bulbank, HVB Bank Biochim and Hebrosbank

• Pireosbank and Eurobank

• Bulgarian Post Bank and DZI Bank

• Heavily regulated: 12% required capital adequacy, no Basel II. IRB allowed


6DSK Bank is a diversified financial institution with significant growth and an extensive branch network

Total assets of DSK Bank (EUR billions) Branch network of DSK

DSK Bank

DSK GaranciaInsurance

DSK Leasing

POK-DSK Rodina

DSK Asset Manage-ment

DSK Tours DSK Trans Security

DSK Ga-rancia Life insurance

DSK Group

3.1

2.31.7

1.31.1

Dec 2002

Dec 2003

Dec 2004

Dec 2005

Dec 2006

• DSK: 366• Bulbank*: 327• First

Investment Bank: 103


* After merger of Bulbank, HVB Bank Biochim, Hebrosbank

CAGR:30%

DSK Auto Leasing


7

The experienced leadership guarantees strong results

Violina Marinova

Chairperson of the Management Board, CEO

Dorothea Nikolova

CFO

Diana Miteva

Retail

Kalin Klisarov

Risk Management

Miroslav Vichev

IT, Operations

Nikolay Borisov

Corporate

• 36 years in the banking sector

• 36 years at DSK


• 4 years at DSK


• 4 years at DSK


• 3 years at DSK


• 3 years at DSK


• 3 years at DSK

Dr. Csányi Sándor

Chairman of the Supervisory Board


8DSK will focus on CRM, loyalty program, investment products whileexploiting OTP Bank know-how


• Implement CRM-based campaign management system to improve sales performance

• Set up loyalty program to retain customers and maintain market share

• Launch innovative investment products and improve system to strengthen market position

• Streamline and harmonize wholesale credit process to reduce throughput time and rejection rate

• Expand in Municipalities segment through new product offering

2007 Key actions for DSK

• Know-how in developing/setting up CRM system (Hungary)

Help from OTP Group

• Consultation on key success factors of loyalty program (Hungary)

• Investment product know-how, IT system (Hungary)

• Solutions to best build on EU funding programs (Hungary)

• Wholesale credit risk management tools (Hungary)

Mid-term actions

• Enlarge card product family• Further improve credit monitoring process


9

Based on solid foundations, DSK Group will deliver outstanding results in 2010

P&L and BS data, EUR billions

2006 2010

0.19 0.35Total revenue afterrisk cost





0.35 0.84Equity


Key indicators, %

2006 2010


38 36C/I


26 24After-tax ROE


12.9 12.5Capital adequacyratio

Main challenges

• Sustain sales effectiveness amid intense competition• Keep up with rapid pace of product development

* Shareholder’s equity + subordinated debt


10Stable or growing market share, relatively high margins are the foundations of DKS’s financial success


0.210.10

2006 2010


CAGR: 17%

* Excluding: sales and trading, asset management** Interest and fees, after risk cost*** Retail deposits & transactions, consumer finance, mortgage, investments and

insurance (only distribution), wholesale banking

Market share, %

• Total*** • Retail banking

Margins**, %

• Total

2226

4.4

2006

2126


2010



CAGR: 22%

0.350.19

2006 2010


Russia: Aggressive expansion in consumer finance and mortgage

Mr. László Wolf, Deputy CEO, OTP Bank;

Chairman of the Board of Directors, Investsberbank


2

Market conditions are favourable for a focused approach

Market • Fast growth (28% CAGR, 2006–2010 of revenues after risk cost)• Retail as main area of expansion• Fragmented market (>1,000 players)

Bank • ISB’s focus on consumer finance with presence in corporate

segment • Strong network with 89 branches and ~80% POS coverage

Strategy

& targets

• Aggressive attack in consumer finance and mortgage; expansion in midsize-corporate segment



3ISB will deliver EUR 0.34 billion pre-tax profit in 2010 through increased sales efficiency, channel expansion

Aggressive attacker

Attacker Incum-bent

Generalist

Focused

Specialist

Str

ate

gic

po

sit

ion

ing

Market dynamics


• Run sales trainings, implement sales effectiveness toolkit

• Open ~40 branches, expand agent network

• Launch mortgage and combined products

• Review and upgrade retail/corporate rating system


• Turn into a leading retail mortgage and consumer finance player through expansion and efficiency gains

• Expand in mid corporate segment through state of the art loan process, product development and sales network

Pre-tax profitEUR billions

0.02

0.34

2006 2010E

CAGR: 98%


4Market growth in Russia is outstanding and sustainable; retail is the main growth engine

4

6

8

2005 2006 2007 2008 2009 2010

Real GDP growth

Percent, annual

6

8

10

12

2005 2006 2007 2008 2009 2010

Key interest rate


Russian banking market – Revenues after risk cost

EUR billions

816

7

15

2006

22

38

2010E

Retail

Wholesale

CAGR: 28%


5

ISB has the space to grow in the emerging Russian banking sector

• Fragmented market of 1,000+ players (vs. ~30–50/country in Central Europe) offers opportunity for expansion

• 80% of retail banking revenues come from PFL that fuels debt driven retail growth

• Clear value proposition for mass can win new clients: offers are not differentiated currently by segment


6

ISB has achieved notable growth in the last years

Total assets of ISB Bank (EUR billions)

Investberbank merged two subsidiaries before OTP acquisition

1.31.0

0.60.5

Dec 2003 Dec 2004 Dec 2005 Dec 2006

CAGR:27%

• ISB: 89• Sberbank:

20,208• Rosselkhoz

Bank: 493

Number of branches,EoY 2006

Branch and POS network of ISB

• Local corporate bank in Novorossiysk

• Local universal bank in Omsk

• Consumer finance focused retail bank with country-wide presence

Promfinservicebank Omskpromstroibank


7An international leadership team with significant local experience guarantees strong results

Inabat TörökActing CEO / Risk

• Previously, Head of Credit Division and Branch network at ÁÉB (Budapest)

László Wolf

Chairman of the Board of Directors

Evgeny EgorovDeputy CEO,

Treasury

• Previously, Deputy Board Chairman of Russian General Bank for 6 years

László CsukaDeputy CEO,

Retail

• Previously, Deputy CEO of FHB Bank (Budapest)

• Graduated in Moscow

Evgeny LolaOperations

• Previously, Head of Internal Audit with multiple bank experience

János LipcseiDeputy CEO, CFO

• 17 years of OTP experience

• Graduated in Leningrad

Evgeny SavischevAdministrative

• Previously, held managerial positions in different Russian banks

• Head of Omsk Bank since 1987

Valery Stephanov

Vice president,Head of Omsk

Dmitry KhalenevCorporate

• Significant Russian banking sector experience at various institutions


8ISB will focus on sales force effectiveness, mortgage, retail network expansion leveraging OTP Bank knowledge

• Develop and implement incentives, performance monitoring system and sales training program

2007 Key actions for ISB

• Sales force effectiveness tools (Hungary, Bulgaria)

Help from OTP Group

Mid-term actions

• Review IT architecture• Centralize/automate back-office activities

• Develop and launch new retail mortgage products

• Enhance project finance activity• Expand agent network and build 40 new

branches in the first 8 months

• Optimize credit risk assessment process for Consumer Finance

• Upgrade planning and controlling system

• Know-how of key mortgage products (Hungary, Ukraine)

• Consultation on model branches, branch opening process best practice (Hungary)

• Procedures of credit risk management (Hungary)

• Know-how and consultation on system selection and implementation (Hungary)


9

ISB is setting ambitious targets

P&L and BS data, EUR billions

2006 2010






0.17 1.19Equity*


Key indicators, %

2006 2010

13 11Net interest margin

60 34C/I


13 35After-tax ROE



Main challenges

• Manage credit risk of consumer finance expansion

• Guarantee human resources to support growth* Shareholder’s equity + subordinated debt


10



Quadrupling market share on a rapidly growing market and maintaining high margins are the foundations of ISB’s financial success


0.34

0.02

2006 2010


CAGR: 57%

Market share, %


Margins**, %

• Total

0.50.7

8.2

2006

2.12.8


2010

• Wholesale banking* <0.1 0.5

• Wholesale banking* n/a 4.8

CAGR: 98%

0.69

0.11

2006 2010


Ukraine: Focused attack on affluent and retail lending segments

Mr. Dmitry Zinkov, CEO, CJSC OTP Bank


2

Market conditions are supportive for a focused approach

Market • Steady growth (23% CAGR, 2006–2010)• Retail as the main area of expansion (29% CAGR vs 19%

in wholesale)

Bank • CJSC OTP Bank has sustained notable growth

(54% CAGR, 2002–2006)• Nationwide network of 46 affluent branches

Strategy

& targets

• Steady focus on affluent segment and SMEs through extensive branch/agent network development and product introduction



3CJSC OTP Bank will deliver EUR 0.25 billion pre-tax profit in 2010, based on massive branch expansion and affluent positioning


• Develop country-wide branch, partner and agent-network

• Enlarge affluent product/service range (e-banking, easy-to-use C/A services)

• Grow rapidly in SME/local corporate through comprehensive product/service offering


• Build 76 new branches and a nationwide network of agents

• Develop investment and Private Banking value proposition

• Streamline corporate credit process


Aggressive attacker

Attacker Incum-bent

Generalist

Focused

Specialist

Str

ate

gic

po

sit

ion

ing

Market dynamics

0.07

0.25

2010E

CAGR: 39%

2006


4

The Ukrainian market is characterized by fast growth especially in retail lending

0

2

4

6

8

10

2005 2006 2007 2008 2009 2010

Real GDP growth

Percent, annual

024

68

10

2005 2006 2007 2008 2009 2010

Key interest rate


Ukrainian banking market – Revenues after risk cost

EUR billions

4.2

2.1

3.1

7.0

1.0

2.8

2006 2010E

Retail

Wholesale

CAGR: 23%

The Ukrainian market environment has tremendous growth potential


5

Most growth coming from retail, SME

• Low concentration on the market: ~10% asset share for the largest player

• High interest spread, especially with foreign funding

• Dynamically developing retail segment: consumer finance ~130% volume growth in past 2 years

• Stable high growth in mortgages and car loans

• Over 100% annual expansion expected from SME segment in the next 2 years


6

CJSC OTP Bank has grown tremendously over the last years

Total assets of CJSC OTP Bank (EUR billions)

Branch network of CJSC OTP Bank

0.60.40.3

1.7

1.2

Dec 2003

Dec 2005

Dec 2006

Dec 2004

CAGR:54%

Dec 2002

• CJSC OTP Bank: 78

• RaiffeisenBank Aval: 1400

• Ukrsotsbank: 500

Number ofbranches

Russia

Black Sea

Russia

Sea of Azov

MoldovaHungary

Romania

Poland

Belarus

Kyiv

Dnipropetrovsk

Simferopil

Odesa

Chernivtsy

VinnytsyaCherkasy

Zhytomyr

RivneLutsk

Lviv

Uzhgorod

Ternopil

Ivano-Frankivsk

Kherson

Nikolaev

Poltava

Kharkiv

Lugansk

Chernigiv

Sumy

Kirovograd

DonetskZaporizhzhya

Khmelnitsky

Mukachevo

Illichivsk

Mariupol

Berdyansk

Melitopol

Kremenchuk

Kryvyy Rig

Energodar

Kramatorsk

Sevastopol

Bila TserkvaStryy

Severodonetsk

Izmail

Dniprodzerzhinsk

Makiivka

Uman

Konotop

Boryspil

Slovyansk

Gorlivka

Lysychansk

Kovel

YuzhnoukrainskMarganets

Zhovti Vody

Romny


7

The strength of the management team is a cornerstone of future growth

Dmitry Zinkov, CEO

Chairman of the Board, CEO

Dmytro Beletsky

Retail

• 14 years in banking sector• 8 years with CJSC OTP

• 15 years in banking sector

• 3 years with CJSC OTP

Pál KovácsChairman of Supervisory Board

Liliya Lazepko

Operations, IT



Irina Mikhailova

Corporate




8CJSC OTP Bank will focus on developing branch network and affluent value proposition while leveraging OTP Group expertise

• Open 76 new branches

• Expand partners, agents and mobile bankers network

• Develop solid affluent value proposition

• Introduce Investment and Private Banking products

2007 Key actions for CJSC OTP Bank

• Know-how on branch development, procurement (Hungary, Bulgaria)

• Experience on agent network expansion (Hungary, Bulgaria)

• Lessons learned from affluent and Private Banking value proposition, investment product design (Hungary)

Help from OTP Group

Mid-term actions

• Further expand branch network• Rationalize back-office operations


9

Based on focused expansion, CJSC OTP Bank will deliver superb results in 2010

P&L and Balance sheet data, EUR billions

2006 2010






0.20 0.75Equity*


Key indicators, %

2006 2010


36 37C/I


32 30After-tax ROE



Main challenges

• Keep up fast pace of branch and agent network development

• Solidify high level of sales effectiveness* Shareholder’s equity + subordinated debt


10A focused expansion and maintaining high margin levels are the key elements of CJSC OTP Bank’s financial success


0.25

0.07

2006 2010

CAGR:39%


0.42

0.11

2006 2010

CAGR: 39%

Market share, %

• Total** • Retail banking

Margins, %

• Total

57

5.9

2006

710


2010



* Excluding: sales and trading, asset management** Retail deposits & transactions, consumer finance, mortgage, investments and



Romania: Become significant retail/corporate player, achieve sound profitability

Dr. Frigyes Hárshegyi; CEO, OTP Bank Romania


2

OTP Bank RomaniaOTP Bank OTP Bank RomaniaOTP Bank RomaniaOTP Bank RomaniaOTP Bank OTP Bank Romania

Market conditions and capabilities set OTP Bank Romania for profitable growth

Market • Steady growth (21% CAGR, 2006–2010)• Both retail and wholesale revenue pools double by 2010

Bank • OTP Bank Romania shows significant asset growth since

acquisition (quadrupling assets)• Presence in all regions and major cities with 66 branches

Strategy

& targets

• Maintain universal retail profile, focus on micro, small and mid-size corporate, increase sales and operational efficiency

• EUR 0.07 billion pre-tax target in 2010


3


OBR will turn into a profitable bank with a focused and sales-oriented strategy

Aggressive attacker

Attacker Incum-bent

Generalist

Focused

Specialist

Str

ate

gic

positio

nin

g

Market dynamics


• Step-up sales focus in retail, concentrate on mass/upper mass segments

• Focus corporate banking strategy on micro, small, medium corporate and project finance

• Continue with cost-effective network development, centralize for economiesof scale


• Enhance consumer loan cross-sell • Launch innovative retail products (e.g.,

mortgages, deposits), develop private banking

• Expand sales network: new branch models; countrywide merchant acquisition, agents/partners

• Step-up corporate sales capabilities, set up project finance


0.07

-0.01

2006 2010E

CAGR: n/a


4


EU membership further accelerates market growth in Romania

0

2

4

6

8

10

2005 2006 2007 2008 2009 2010

Real GDP growth

Percent, annual

4

6

8

10

2005 2006 2007 2008 2009 2010

Key interest rate


Romanian banking market – Revenues after risk cost

EUR billions

2.4

1.0

1.6

2.6

2006

3.1

5.5

2010E

Retail

Wholesale

CAGR: 21%

The Romanian market environment offers great opportunities for growth


5


OBR can become a decisive factor in the dynamic Romanian banking sector

• Foreign Direct Investment pouring in, many foreign banks are just coming, 1,100 new bank branches in 2006

• Central Bank has very restrictive policies (e.g., reserve rate 40% for FX, 20% for RON), future policy will greatly influence profitability

• Strong development of the banking market – 46.2% increase in 2006. OTP managed to boost its assets 3.5 times

• High growth potential – even the banks at the top end of the asset ranking grew over 50% in 2006

• Increase of retail financing, mainly sustained by the growth of the mortgage loans – in 2010, the market will be almost 3 times bigger

• Growing customer sophistication leads to the emergence of more complex banking products and services


6


OBR capability provides foundation for profitable growth

Total assets of OBR Bank (EUR billions)

OBR Group

* Map shows branch network on time of acquisition (2004)

• …

Branch network of OBR*

OTP Bank Romania

OTP GaranciaAsigurari SA

Number of branches, EoY 2006OBR: 66BCR: 473BRD: 550

0.73

0.220.18

CAGR:101%

2004 2005 2006


7


János Komorowicz

CFO


• 3 years at OBR

Experienced leadership team is the key for execution of plans

Dr. Antal Pongrácz


Frigyes Hárshegyi

CEO

László Diósi

Retail

György Bodó

IT & Logistics


• 2 years at OBR


• 2 years at OBR


• 2 years at OBR

OTP Bank Romania


8


OBR will focus on product innovation, sales network expansion and sales force effectiveness leveraging OTP Bank experience

• Launch new, innovative retail products (mortgage, deposit), develop private banking value proposition

2007 Key actions for OBR

• Sharing experiences and product descriptions (Hungary, Bulgaria)

Help from OTP Group

Mid-term actions

• Further develop asset management and PB value proposition• Develop value proposition for/open towards higher threshold

of SME

• Enhance cross-selling activities for consumer finance

• Expand sales network by upgraded new branch models, countrywide merchant acquisition, enlarged direct sales agent/ partner network

• Step up corporate sales force capabilities, project finance and municipalities cooperation model with OTP Hungary

• Consultation on key success factors (Hungary, Bulgaria)

• Consultation on procedures and best practices (Hungary)

• Revamp project finance operation model, best practice sharing (Hungary)


9


Based on solid foundations, OTP Bank Romania will deliver superbresults in 2010

P&L and Balance sheet data, EUR billions

2006 2010


-0.01 0.07Pre-tax profit

-0.01 0.06After-tax profit



0.10 0.22Equity


Key indicators, %

2006 2010


135% 50%C/I

-2.2 2.4After-tax ROA

-14 31After-tax ROE



Main challenges

Execute rigorously • Sales and operational efficiency programs• Keep up pace of retail network development


10




Growing market share, high margin levels, sales and operational excellence are the foundations of OBR’s financial success


0.07

-0.01

2006 2010


CAGR: 62%

Market share,%


Margins**,%

• Total

2.02.0

4.4

2006

5.06.0


2010



CAGR: n/a

0.16

0.02

2006 2010


Montenegro: Retaining Number 1 position in a fast growing and highly competitive market

Ms. Aleksandra Popovic, Assistant General Director, CKB


2

CKB solid foundations for growth

Market

• Stabilizing economy offering exceptional growth potential (21% CAGR 2006–2010)

• Retail lending sector and project financing a key segments of further development

Bank • Leading financial institution with 45% market share• Most advanced products and services on the market

Strategy

& targets

• Retain market share by offering best-in-class products and promoting cross-sales

• EUR 17 million pre-tax profit target in 2010


3CKB will deliver EUR 17 million profit in 2010 based on improved sales and product innovation

Aggressive attacker

Attacker Incum-bent

Generalist

Focused

Specialist

Str

ate

gic

positio

nin

g

Market dynamics


• Exploit incumbent position through

– sales intensification

– product innovation

– leveraging OTP and DSK know-how


• Conduct nationwide sales training


• Launch project finance to capture EU funding opportunity

• Develop innovative e-banking services

Pre-tax profit EUR million

17

4

2006

CAGR: 40%

2010E


4

Montenegro’s banking market is characterized by fast, retail-focused growth

0.0

2.0

4.0

6.0

8.0

2005 2006 2007 2008 2009 2010

Real GDP growth

Percent, annual

0.0

2.0

4.0

6.0

8.0

2005 2006 2007 2008 2009 2010

Key interest rate

Percent, ECB rate

Montenegro’s banking market – Revenues after risk cost

EUR millions

3145

25

56

2006

75

120

2010E

Retail

Wholesale

CAGR: 21%

Stability and EU-integration ensures unparalleled growth especially in retail

segment


5CKB dominates a market fuelled by fast integration into international organizations and high FDI

• Stabilizing economy: EU integration in progress, full World Bank and IMF membership

• High level of foreign direct investment will further stimulate growth in all market segments

• Continuing expansion, especially in project financing, retail lending, insurance

• CKB is the leading player having the most advanced services and 40% of banking market

• New regulation on bank sector including preparation for Basel II


6

CKB has shown steady growth over the last years

Total assets of CKB (EUR billions) Branch network of CKB

0.540.30

0.150.090.06

Dec 2002

Dec 2003

Dec 2004

Dec 2005

Dec 2006

• CKB: 34• NLB

Montenegro banka: 22

• Podgorickabanka: 16


CAGR:72%


7

CKB leadership is a strong backbone of future growth

Milka Ljumovic

General Director

Aleksandra Popovic

Assistant General Director

• 40 years in banking sector• General Director since

foundation of CKB in 1997

• 10 years in banking sector • 10 years of CKB

József Windheim


Bose Tatar

Deputy General Director

• 25 years in banking sector • 10 years of CKB


8CKB will focus on reaching full product coverage and enhancing cross-sales by utilizing local and group know-how


• Further improve electronic channels, through new e-banking services

• Set up Call Center

• Improve risk management

• Conduct sales training within CKB

• Implement best practices in IT and physical infrastructure

• Further extend CKB network

2007 Key actions for CKB

• Use Group’s product definitions customized to local requirements (Hungary)

• Leverage on sales best practices (Hungary, Bulgaria)

• Develop solution based on Group standards (Hungary)

• Utilize central risk management experience (Hungary)

• Build on group-wide IT best practice (Hungary)

Help from OTP Group

Mid-term actions

• Expand into new markets and market segments

• Prepare insurance as a new product according to new regulations


9

Based on solid foundations, CKB will deliver superb results in 2010

Key P&L data, EUR millions

2006 2010

17 35Total revenue afterrisk cost

4 17Pre-tax profit

4 15After-tax profit

323 788Total customer loans

444 895Total customerdeposits

23 79Equity*

548 1,038Total assets

Key indicators, %

2006 2010


61 47C/I


19 23After-tax ROE



Main challenges

• Keep up sales effectiveness• Be fast in bringing new products

to market* Shareholder’s equity + subordinated debt


10



Limiting market share and margin decrease are the key elements of CKB’s financial success


174

2006 2010

Revenues after risk cost (EUR millions)

CAGR: 19%

Market share,%

• Total***• Retail banking

Margins**,%

• Total

4541

2.8

2006

3732


2010



CAGR: 40%

35

17

2006 2010


Disclaimer This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and businesses environment of OTP Group based on the management's current views and assumptions. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are plenty of factors which could cause actual results or developments to differ materially from those expressed or implied by these forward looking statements and forecasts. The statements have been made with reference to forecast price changes, economic conditions and the current regulatory environment. Forward-looking statements are not guarantees of future performance. Undue reliance should not be placed on these forward-looking statements. Nothing in this announcement should be construed as a profit forecast. We do not intend and do not assume any obligations, to update forward-looking statements set forth herein. This document neither constitutes an offer of securities, nor a solicitation for an offer of securities, or marketing or sales activity for such securities.


Practical Information Location

Boscolo New York Palace Hotel Budapest, H-1073 Erzsébet krt. 9-11. tel: +36-1-88-66-111 fax: +36-1-88-66-199 e-mail: [email protected]

Conference: Lobby, Ground floor Coffee breaks: White Salon, Ground floor Lunch: Rossini Room, 1st floor

Dinner with Entertainment

Europa Conference Ship Budapest, Buda-side, Szilágyi Dezső tér

Coach departs from the Boscolo New York Palace Hotel at 19:00. Ship departs at 19:30.

Contacts

OTP Bank Investor Relations H-1051 Budapest, Nádor u. 16. tel: +36-1-473-5460 +36-1-473-5457 fax: +36-1-473-5951 E-mail: [email protected] Web: www.otpbank.hu

If you have any problem during your stay in Budapest, please, feel free to contact us:

Sándor Pataki +36-70-70-80-029 Beáta Lendvai +36-70-70-80-527

Documents

Investor Day - OTP Bank › static › portal › sw › file › OTP_InvestorDay2… · OTP Bank Investor Day, April 2007 1 Table of Contents Schedule 2 Faces of the Conference 3