About OTP Group
OTP Group is one of the fastest-growing banking groups in Central and Eastern Europe, with unique knowledge of the region, a lasting commitment to it and 75 years of history. With more than 41,000 employees in 12 countries of the CEE and Central Asian region, the Group provides universal financial services to 17 million customers. It is the 4th most stress-resilient banking group in Europe, according to the CET1 rate decrease under three years stress scenario based on the European Banking Authority’s European banking stress test 2023. With integrity and determination OTP Group is working towards helping the development of the Central and Eastern European region to become the continent’s growth engine.
Focus on sustainability
The OTP Group has for many years placed great emphasis on sustainability, aiming to avoid negative environmental and social impacts while at the same time exploiting potential business benefits. For OTP Group, sustainability means taking responsibility for our economic, social and environmental impacts. Therefore, the main objective of OTP Group's environmental, social and corporate governance (ESG) strategy – adopted in 2021 by the Board of Directors- is to play a regional leading role in financing the gradual transition to a low-carbon economy and building a sustainable future.
Subsidiary banks also developed their ESG strategies, setting their local objectives, which are also aligned with those of the parent bank. The strategies cover setting the necessary organisational frameworks, integrating ESG factors in risk management, exploiting green business development opportunities, and mitigating the negative environmental impact of operations. During 2023, OTP Group broadened and deepened ESG activities in both business development and risk management across the banking Group members.
Playing an active role in green finance
There is no green transition without an adequate financial background, which is why banks have a main role in financing green projects, promoting energy efficiency, and helping the households and businesses to embark on a sustainable path. Therefore, OTP Group's approach is to focus on sustainable financing, trying to create a supportive environment for it:
OTP Group has developed its Green Loan Framework based on international standards, thus establishes the guiding principles of green lending within OTP Group. The Framework now covers 8 countries of the Group: Hungary, Slovenia, Croatia, Serbia, Albania, Montenegro, Bulgaria.
The Framework was expanded with new economic activities in 2023, related to climate change mitigation and adaptation, considering the composition of the OTP portfolio and business opportunities.
In 2023 OTP Group reached its green lending targets and had disbursed EUR 1,7 billion in corporate and retail green loans, more than double the 2022 year-end result. The share of green loans in OTP Group’s loan portfolio is close to 2%, which represents a significant increase. In 2024 OTP Group will be continuing to push for the financing and refinancing of projects that make a clear contribution to establishing a low-carbon and climate change-resilient economy.
OTP Group’s Sustainable Finance Framework - based on international guidelines and recommendations - sets out the rules for issuing the Bank’s green and social capital market financial instruments in 2022. In the same year OTP Bank issued the first series of green bonds in Hungary, which was the first Hungarian green bond issued in the international debt market.
OTP Group sustainability efforts among best in world
OTP Group has been named the world's best bank for sustainability transparency by Global Finance Magazine. This recognition is special because for the first time in its history, OTP has won an award in a global category. OTP has been selected as the winner in 1 country, 4 regional categories (CEE) as well: The Best bank for Sustainability Transparency in CEE for 2024; The Best Bank for Sustainable Project Finance in CEE for 2024; The Best Bank for Sustainable Financing in Emerging Markets in CEE for 2024; The Best Bank for ESG-Related Loans in CEE for 2024; The Best Bank for Sustainable Finance in Hungary for 2024.
OTP Group members you will meet at the event
Alongside representatives from the Hungarian OTP Bank, its subsidiaries from Montenegro (CKB bank), Serbia (OTP banka Srbija), and Albania (OTP Bank Albania), are also part of the ESG Adria Summit.
OTP banka Srbija is the leading creditor at the Serbian market, employing almost 3.000 people and servicing over 725.000 of active clients with extensive footprint of 153 branches in 91 cities and 6 regions across the country. In 2023, the Bank achieved record business and financial results, recognized by several international awards including Global Finance’s Best Foreign Exchange Banks award 2023, 2023 Euromoney Cash Management Non-Financial Institutions Survey for Serbia and Serbia’s Corporate Banking Market Leader 2023, market leader 2023 – highly regarded for ESG and for Digital, all three by Euromoney.
In late 2023, as the only bank from Serbia OBSr has become an official signatory of the UN Principles for Responsible Banking – a single framework for a sustainable banking industry developed through a collaboration between banks worldwide and the United Nations Environment Programme Finance Initiative (UNEP FI). By implementing innovative ways to achieve energy efficiency and by providing systemic support to social activism and initiatives in the fields of culture, sports, science, education and entrepreneurship, OTP banka Srbija has positioned itself as one of the leaders of the green transition in the banking sector and as a company whose socially responsible work and HR initiatives received multiple awards. Our aim as is to actively participate in building a sustainable future and be an example of environmentally responsible business.
OTP Bank Albania stands in a leading position in the banking sector of the country particularly regarding the lending portfolio. At present OTP Albania serves around 400,000 clients with a team of more than 700 people covering 360 degrees banking products & Services. We lead the market, as the bank with the largest ATM network and most modern POS service. Euromoney has appraised OTP Albania four years in a row as the ‘Best Bank in Albania’ and The Banker for two consecutive years.
OTP Albania is embracing the ESG model of business with clear objectives, which are expected to increase year by year. We are supporting with financing the green energy such a Photovoltaic a trend increasing in Albania incrementally. A strategic approach of the bank in the support of business is the special financing program for startups as mechanism for supporting new enterprises and distribution of opportunities among youth specifically.
OTP Albania is signatory of UN Women in the frame of gender equality and support for women, within and outside the bank.
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