A core subsidiary of OTP Bank Rt. Close operational and organizational integration with OTP The leading player in mortgage lending in Hungary High credit risks arising from rapid loan growth and significant foreign currency lending Low profitability Moderate capitalization The ratings on Hungary-based OTP Mortgage Bank (OTPMB) are equalized 100% with its parent, OTP Bank Rt. (BB+/Negative/B; OTP). OTPMB has core strategic status to OTP, as parent, with very close organizational and operational integration. OTP operates OTPMB similar to a branch, specializing in refinancing residential mortgages originated by OTP. OTPMB has a leading position in retail mortgage lending in the Republic of Hungary, with HUF1200 billion homeowner financings, or about 30% of all mortgage loans in Hungary (as of March
