Dominant retail market position in Hungary with solid domestic retail deposit base. High net interest margins, which serve as a buffer against elevated impairment costs and special banking taxes. High systemic importance in Hungary, and demonstrated liquidity support from the Hungarian central bank. High credit risk abroad, notably in Russia and Ukraine. Still sluggish credit demand in Hungary. Ongoing and potential new pressure on economic and industry conditions in the eurozone and the riskier Central and Eastern Europe (CEE) markets in which OTP Bank operates. The positive outlook on OTP Bank PLC and OTP Mortgage Bank takes into account our expectation of more benign operating conditions in Hungary, and to a certain extent, in the rest of the CEE region.
