OTP Group in Serbia, including Vojvodjanska Banka and OTP Banka Serbia, achieved an annual loan growth of 15%, which is more than 500 million euros and which shows the Group’s commitment to the Serbian market. At the end of 2020, the total net loans of both banks amounted to 3.7 billion euros and thus took a market share of over 17%. Vojvodjanska Banka and OTP Banka are currently in the process of integration, which will last until May 2021, when they will continue to operate as one bank under the name OTP Banka Serbia. Thanks to the results in the past year, as well as the increased market share in all segments, the new integrated bank will be the first in Serbia in terms of market share in the loan segment.
“We have faced numerous challenges in the previous year in which we have succeeded, not only in maintaining a profitable business, but also in improving key aspects of our work. At the same time, we worked on our project of integration between the two banks, which we are bringing to an end, thanks to the continuous investment in digital transformation and the exceptional commitment of our employees. The pandemic has affected the entire economy in many ways, and we have tried to provide all the necessary support to our clients, which is supported by the fact that we have approved more than 259 million euros through the guarantee scheme to date. We have increased market share in all segments; at the end of 2020, the total net loans of both banks amounted to 3.7 billion euros with an annual loan growth of about 15%, which is 500 million euros more than last year. Thus, the new OTP Banka Serbia will be number one in terms of share in the credit market in Serbia. At the end of 2020, the total net operating income was at the level of 102 million euros, and the net result after taxes amounted to 22 million euros,” said Predrag Mihajlovic, President of the Executive Board of OTP Banka Serbia and Executive Sponsor of the integration project of OTP Banka and Vojvodjanska Banka.
High credit growth comes from both business segments, both individuals and the economy. In the segment of retail banking, annual growth of over 17% was achieved, with strong growth of production on housing loans of 40% annually and market share in housing loans of over 21%, while the market share of cash loans was over 20% with market share growth of over 100 basis points. In the business segment, the annual growth was about 13%, while the market share in this segment is over 16% with a growth of over 50 basis points compared to the previous year.
Total net operating income at the end of 2020 was at the level of 102 million euros, which is an increase over the previous year of about 5.6%, and as a result of good commercial performance and savings on total operating expenses by over 10% compared to 2019, BizLife reports.
