Hungarian OTP Bank increases profits in Russia and impacts Ukraine

Hungarian OTP Bank increases profits in Russia and impacts Ukraine

There is a financial institution in Ukraine with a unique position among banks with foreign capital — OTP Bank. This bank, it turns out, can influence the blocking of EU aid to Ukraine. The management of the financial institution has close contact with the Hungarian government. After the start of the full-scale war, the bank managed to increase its profits both in Russia and Ukraine. At the same time, international media, citing senior German diplomats, claimed that OTP Bank effectively recognizes the occupied Ukrainian regions as part of the Russian Federation.

A few days ago, it became known that OTP significantly increased its profits by expanding its business in the Russian Federation. Here is how one of Ukraine’s largest banks pays taxes to the aggressor and, through the Hungarian government, influences the decisions of the Ukrainian authorities.

What’s wrong with OTP Bank: a loud statement from NAPC and increased revenues at the expense of the Russian Federation

The National Agency for the Prevention of Corruption (NAPC) already in 2023 included OTP Bank in the list of sponsors of terrorism. The agency stated that the financial institution continues its activities in the Russian Federation and effectively "recognizes the so-called Donetsk and Luhansk ’people’s republics’."

After this, OTP Bank in Ukraine denied part of the NACP’s statements. "The information about the recognition of illegal formations ’L/DNR’, as well as the provision of preferential loans to conscripted Russians, does not correspond to reality!" — stated the bank already in 2023.

However, in reality, OTP Bank not only stated its position. They did more: they leveraged their political connections. The Prime Minister of Hungary and arguably the only "friend of Putin" in the EU, Viktor Orban, effectively issued an ultimatum: either Ukraine removes the bank from the list of sponsors of terrorism, or Hungary will block EU military aid.

As a result, Hungary blocked military aid to Ukraine amounting to 500 million euros. "We are ready to change our opinion if Ukrainians put an end to the senseless, false status according to which the largest Hungarian bank, OTP, is on the list of international sponsors of war," said Hungary’s Foreign Minister.

Ukraine was forced to remove OTP Bank from this list. However, did this change the bank’s own position? Already in 2024, OTP Bank’s profit in Russia increased by as much as 40% and reached 372 million dollars. The volume of lending in the Russian Federation grew by more than 80%. In Russia, this bank became a relatively reliable partner for Western businesses, just like OTP Bank itself, which does not want to leave the Russian Federation (and there are many such companies). OTP Bank’s Deputy CEO Laszlo Bencsik noted that the bank also observes an increase in deposit volumes from European companies continuing to do business in Russia. "Many of these companies are transferring their funds from Russian banks, which are increasingly being sanctioned, and turning to us," Reuters quotes Bencsik.

In 2025, the bank proudly announced on its website that it was recognized as one of the best employers on the "Russian labor market". The bank also reported that it took sixth place in the rating of the most popular Russian banks on the internet. This means the bank is effectively increasing its presence in the Russian Federation (the volume of lending and profit are increasing). At the same time, the financial institution pays more and more taxes to the aggressor’s budget.

Additionally, bank official Laszlo Bencsik openly admitted that it is OTP Bank that creates banking infrastructure for those companies that decided to continue working in the Russian Federation, despite the war they initiated.

The registry of international sponsors of war, maintained by NAPC, was generally closed. It is worth noting that this registry did not impose any sanctions or restrictions. However, it exerted political pressure on international companies that pay taxes to the Russian budget. International companies continuing to operate in Russia effectively finance the war against Ukraine with their taxes, the killing of civilians, and the destruction and occupation of Ukrainian settlements.

The Russian "subsidiary" of OTP Bank did not clearly express a position after the start of the full-scale war. Instead, the financial institution’s (Russian) clients were assured that they continue to work "in these difficult days."

OTP Bank is also increasing its profits in Ukraine.

In Ukraine, OTP Bank operates within a group of companies, which includes "OTP Leasing", factoring company "OTP Factoring Ukraine", and asset management company "OTP Capital". Until 2016, "OTP Credit" also operated in Ukraine, founded by the Ukrainian and Russian "subsidiaries" of OTP Bank (according to YouControl data).

According to Open Data, OTP Bank in Ukraine made a profit of 4.12 billion UAH last year. A year earlier, the bank earned 3.71 billion UAH. In the profitability rating, the bank, whose parent company continues to successfully operate in Russia and pay taxes to the aggressor, ranked fifth (first place — "Pryvat").

Ukrainians have already reacted to this position of OTP Bank. Although the profit is growing, the number of depositors among individuals is decreasing. If in 2021 the bank had 1.2 million depositors, according to the latest data, their number has already decreased to 996,000. Ukrainians, when choosing a bank, also pay attention to the position of business owners.

While OTP Bank continues to operate in Russia and pay taxes to the aggressor’s budget, the position of the financial institution raises justifiable questions. After the start of the full-scale aggression, hundreds of companies, including international banks, left Russia. As Hungary blocks sanctions against Russia, Hungarian OTP Bank increases its profits in the aggressor country (and thus pays more taxes).