Hungary's largest bank considers full withdrawal from Russia
Hungary's largest bank OTP Bank is considering the possibility of completely ceasing operations in Russia. The strategy review comes amid the planned acquisition of Baltic Luminor Bank, which must be approved by European regulators.
OTP Group CEO Péter Csányi confirmed that the group is studying options for the further operation of its Russian subsidiary. At the same time, the bank acknowledges that a quick sale of the business will be difficult: the current Russian restrictions effectively allow foreign owners to receive only a small part of the asset's value, and a potential buyer must be approved by both Russian authorities and European regulators.
OTP's Russian subsidiary remains a relatively small player in the local market — it accounts for about 0.4% of Russia's banking assets. However, after the start of the full-scale war, the business became significantly more profitable: according to Bloomberg, in 2025 its profit reached approximately $635 million. In recent years, the group has managed to withdraw about $880 million in dividends from Russia.
OTP Group itself emphasizes that it tried to find a way to leave the Russian market after the start of the full-scale war, but was prevented by changes in Russian regulation. The group also states that it has reduced the scale of its business and continues to comply with international sanctions requirements. OTP Group previously reported that in 2023–2024 it received a total of €460 million in dividends from its Russian subsidiary.
An additional factor for reviewing the strategy is a major deal in the Baltic states. In July, OTP Bank agreed to acquire Luminor from funds managed by Blackstone and Norway's DNB Bank. The purchase will allow the Hungarian group to enter the markets of Estonia, Latvia, and Lithuania and increase total assets by more than 10%.
However, maintaining business in Russia has become one of the issues that regulators are examining before approving this deal. In the coming weeks, the European Central Bank and the Estonian banking regulator are expected to make their decisions. Previously, concerns about OTP's Russian presence were also expressed by financial authorities in the Baltic states.
At the same time, the group has a large business in Ukraine. OTP Bank Ukraine is included in the list of systemically important banks, and in 2025 its loan portfolio grew by 35%. Within the group, the Ukrainian business is considered significantly more important than the Russian direction.
There is still no final decision on the sale of Russian OTP Bank. The group is studying possible exit options, so this is about a strategy review, not an already agreed sale of the Russian asset.
Sources: Bloomberg Adria, OTP Group, OTP Bank
