OTP, Erste, Raiffeisen - You should contribute to the crisis… - Equity Note from Concorde Ltd. (Hungary)
You should contribute to the crisis…
On Saturday, the Hungarian govt announced its pandemic crisis plan and set a HUF 663 bln pandemic and a HUF 1,345 bln fund for restarting the economy. Amongst others, the plan includes a HUF 55 bln payment request from banks. While there was a possibility for that, the request came as a negative surprise as the Hungarian Banking Association as well as OTP’s Deputy CEO called the govt recently to cut special taxes. In addition, banks are already facing challenges amidst the crisis and moratoria this year, affecting earnings significantly thus these higher charges would exacerbate the underlying business. Nevertheless without any further details, we assessed the possible payment scenarios at our related banks.
OTP Bank is a financial institution based in Hungary. Co. is engaged in retail banking (account management, bankcards and Electronic sevices - OTPdirekt) corporate banking and private banking. In Hungary traditional banking operations are performed by Co. while specialized services, including car leasing, investment funds and insurance are developed and offered by Co.'s subsidiaries. Co. expands its operations throughout the region via its foreign subsidiaries. As of Dec 31 2011, Co. had total assets of HUF10,200,527,000,000 and deposits of HUF6,398,853,000,000.
Concorde Securities Ltd. is Hungary’s leading independent company engaged in investment banking activities. It provides its clients with integrated financial services, including securities trading, research, corporate financing advisory, capital market transactions, wealth management and investment advisory. The operational management of the company is the responsibility of the CEO, while the owners/managers (who control one-third of the company through their shares and options) are in charge of its strategic governance. Concorde Securities Ltd. is a member of the Budapest, Frankfurt, Warsaw and Bucharest stock exchanges, as well as of the Hungarian Association of Investment Service Providers.
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