OTP banka: Excellent Asset Quality Review (AQR) results
The European Central Bank (ECB) published the results of the asset quality review (AQR) and stress test, in which OTP banka Hrvatska achieved excellent results. The evaluation proved a strong capital position and stability of the bank.
A comprehensive assessment comprising of an asset quality review and a stress test, undertaken by the European Central Bank (ECB), was concluded with an excellent result for OTP banka in both parts of the assessment. A minimal, exceptionally low and non-material impact of the asset quality review (AQR) on the capital adequacy ratio of OTP banka (0,11 p.p.) has an even bigger impact when considering the ECB's conservative approach. Additionally, it should be emphasized that OTP banka was subjected to an inspection immediately after the demanding integration process of Splitska banka.
The assessment procedure included a quality check of the bank's assets at the reference dates set by the ECB (Asset Quality Review - AQR) and stress testing, predicting the bank's ability to cope with various crisis situations (according to crisis scenarios determined by the ECB).
The fact that OTP banka passed the stress test significantly above the prescribed minimums and regulatory requirements confirms the current strong capital position and stability of the bank, which provides adequate protection against potential unforeseen losses and provides the necessary resilience to stress caused by the most unexpected adverse economic conditions.
The positive findings are a confirmation of the quality of the bank's internal processes, which is just another proof of the diligent and careful process of classifying placements into appropriate risk groups and the conservative approach to forming value adjustments.
"We are extremely pleased with the findings of the AQR assessment and stress test, which prove that we are successfully facing all market challenges through responsible business policies, earning the full trust of our clients. This test is especially important for us and for the entire OTP Group, as it immediately followed a major integration process that formed the fourth largest bank in Croatia, confirming that we have successfully implemented the complex integration in all segments. I take this opportunity to once again thank all the employees who participated in this process", said OTP banka CEO Balázs Békeffy.