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History and general introduction

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OTP Mortgage Bank Ltd. (“OMB” or the “Bank”) was established by OTP Bank Plc. (“OTP Bank”) on 15 May 2001 as a fully owned subsidiary under Act XXX of 1997 on mortgage credit institutions and mortgage bonds (the Mortgage Credit Institution Act) and Act CXII of 1996 on credit institutions and financial enterprises (the Credit Institutions Act). The Bank was registered in Hungary by the Court of Registration on 9 October 2001.

The operating permit of the Bank was issued on 10 January 2002 by the Hungarian Financial Supervisory Authority (the “HFSA”) and OMB started business activities on 1 February 2002. The Bank operates exclusively in Hungary as a specialised credit institution in the corporate form of a private company limited by shares.

The development of the legislation in respect of mortgage lending and the expansion of the system of state subsidies in Hungary provided an opportunity for new mortgage credit institutions to enter the market and to compete for home loans by offering such loans at favourable interest rates financed through funds raised from subsidised mortgage bond issues. This was OTP Mortgage Bank’s primary sphere of operation. OTP Bank established the Mortgage Bank as a vehicle through which the OTP Bank Group could effectively penetrate the developing mortgage lending market in Hungary and with the view of diversifying the product portfolio of the Group. Following its establishment, the Bank became an active participant in the emerging mortgage bond market.

OMB‘s lending activity is financed through the issuance of mortgage bonds. The Hungarian Forint denominated mortgage bonds are issued under domestic issuance programmes from the year of foundation. The Bank entered the international covered bond markets in December 2004 with the establishment of its Euro Mortgage Securities Programme in order to finance its foreign currency denominated mortgage loan portfolio.

The Bank employs limited number of staff at its head office and relies on the huge branch network (approximately 380 branches) of OTP Bank engaged in the housing loan business. At 30 June 2011 the number of employees was 38.

As at 31 December 2010, the issued share capital of OMB was HUF 27 billion, which comprised 270,000 registered ordinary shares each with a nominal value of HUF 100,000. 100% of the shares are owned by OTP Bank. Due to the high volatility in the relevant exchange rates, OTP Bank decided to grant a CHF 15 million subordinated loan to the Bank on 30 January 2009 with a term of eight years in order to strengthen its capital position.

 

History, general introduction

Business strategy

Corporate data

Corporate governance

Statutes

FATCA information

GIIN Number of OTP JZB:
UH5299.00002.ME.348

Form W-8BEN-E



Last modified date:
January 16, 2015
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