OTP Bank Weighs Russia Exit as ECB Reviews €2B Luminor Deal

Hungary's largest bank OTP is reviewing whether to exit Russia after three decades, as ECB approval of its €2 billion acquisition of Baltic lender Luminor puts it under formal regulatory scrutiny. A strategy decision is expected by year-end; OTP's Russian unit earned over €558 million in net profit last year.

• OTP agreed to buy 100% of Luminor from Blackstone and DNB funds for €2B
• Russian unit runs about 800 branches and 2 million active customers
• Russia profit topped €558M, nearly a fifth of group net income
• Exit is nearly impossible: 60% valuation discount and 35% levy