OTP wins big at CEE bank of the year awards

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Hungarian banking group OTP’s subsidiaries in Albania, Bulgaria, Hungary and Slovenia were ranked as the best banks in their respective countries at the Bank of the Year 2024 Awards organised by The Banker magazine.

The UK-based outlet, part of the Financial Times Group, said it chose the winning banks in Central and Eastern Europe (CEE) for their resilience and innovation in a shifting landscape, from the sustainability of the Visegrad Four and Romania, to the inclusivity, modernisation, green banking and SME support of institutions in the West Balkans. 

The jury considered capital-to-asset ratio, return on capital (ROC), return on assets (ROA) and non-performing loans (NPL) to total loans, strategic initiatives, technology, new products and services, and sustainability efforts.

Romania, Visegrad Four banks win for innovations

Poland’s winner Bank Pekao introduced platforms such as “funds with the bison” to help businesses access EU grants and extended its “piggy bank” savings tool to retail customers. Bank Pekao’s management board president Cezary Stypulkowski said: “Bank Pekao has traditionally been at the forefront of innovation when it comes to serving corporate clients, combining excellence in relationship banking with product leadership. I’m confident that we can match this success in retail banking by building on our strong balance sheet, with renewed willingness to innovate and the strength of our people,” he added.

Slovakia’s Slovenska Sporitelna developed tailored products with advanced customer relationship management tools and its financial health platform. Slovenska Sporitelna CEO Peter Krutil said: “the world and the banking industry are changing rapidly, and in order to remain the best Slovak bank, Slovenska Sporitelna must also keep changing.”

In Czechia, CSOB streamlined mortgage services digitally and upgraded its mobile app to include energy tariff comparisons and a virtual assistant that handled nearly 1mn customer queries in Q1 2024. CSOB Group CEO said: “We approach our clients with a mission to provide personalised, comprehensive financial services.”

Focused on digital and sustainable initiatives, Romania’s BRD Groupe Societe Generale extended EUR 976m in green financing and installed 24/7 self-service areas in branches. BRD Groupe Societe Generale CEO Maria Rousseva said: “Going forward, we will further build on the accelerated commercial results from 2023 and 2024, expand and improve our offer of sustainable financing and digital solutions to drive an impactful contribution.”

OTP advanced its “digital-first” strategy, launching tools including a “split the bill” function and virtual piggy banks, while also growing its green loan portfolio to HUF 656bn (USD 1.69bn) in Hungary.

Estonian bank garlanded for corporate banking services

In Estonia, award winner LHV Pank focused on corporate banking, expanding its investment banking unit to support mergers, acquisitions, and capital raising. Retail customers benefited from high-interest savings accounts and enhanced digital payment systems. 

The bank’s acquisition and integration of Paytech improved fraud prevention tools and payment options, including Google Pay and Apple Pay.

LHV Pank CEO Kadri Kiisel said: “We are also a bank with a long-term technology focus, emphasising innovation and sustainable operations. This has helped us increase efficiency and attract talent.”

Western Balkan banks lean into new technology

Croatia’s bank of the year, Zagrebacka Banka, utilised AI-powered voicebot “Mia” to reduce call volumes and enhanced ESG-related services for businesses. Since July 2023, Zagrebacka Banka has been developing its approach to gathering and utilising ESG-related data in its work. The Croatian bank’s ESG global infrastructure project helps bankers understand ESG profiles and identify sustainable products for these businesses.

Montenegro’s NLB Banka launched innovative products like NLB Budget Plus, offering interest-free credit, and upgraded its mobile app for an improved user experience. NLB Banka president Martin Leberle said: “As new technologies and sustainability issues continue to reshape the banking industry that is rapidly evolving (the bank has) a firm focus on pursuing digitalisation, product innovation and green banking”.

North Macedonia’s Komercijalna Banka prioritised digital transformation, allowing customers to open accounts and apply for cards entirely online. Its participation in the European Investment Bank’s Greening Financial Systems programme underscored its sustainability focus. “It is a privilege to be once again recognized as Bank of the Year in North Macedonia, especially now when we approach Komercijalna Banka’s 70th anniversary in 2025,” Komercijalna Banka chief sales and development officer Nikola Dzambazovski said, putting the win down to “innovation, resilience, and customer focus”.

In Serbia, Banca Intesa introduced the IN payment account for customers aged 16–27 and invested EUR 7mn in the European Bank for Reconstruction and Development’s SME fund. It also launched a charitable foundation focused on youth education and women’s economic empowerment. Banca Intesa CEO Darko Popovic said: “The bank is embedding ESG principles throughout the organisation to support the green transition, promote inclusive growth, and ensure the sustainability of its business model.”

Albania, Kosovo, BiH banks support SMEs

In Albania, OTP integrated Alpha Bank Albania, strengthening SME and agricultural loans. With Alpha Bank fully integrated into OTP, the bank achieved a strengthened competitive position in the market, enhanced operational capabilities and has proven its ability to manage complex transformation projects, The Banker wrote.

Kosovo’s winning bank BKT Kosovo promoted sustainability with green deposit products, digital budget planning and cardless ATM withdrawals. BKT Kosova CEO Suat Bakkal said: “BKT Kosovo is redefining success by embedding ESG principles across all operations.”

In Bosnia and Herzegovina (BiH) UniCredit Bank Mostar supported Micro, Small & Medium Enterprises (MSMEs) with favourable loans and upgraded mobile real-time business account management and international payments. UniCredit Bank Mostar CEO Amina Mahmutovic said: “Over the past 12 months, we have implemented innovative solutions in digital services and enhanced sustainable practices, all aimed at delivering exceptional service and top-class offerings to our clients and our market.”

Nevertheless, OTP Group – which serves nearly 17mn customers in 11 countries, and was recently ranked the best-performing of Europe’s 50 largest publicly traded banks by S&P Global Market Intelligence – remained the biggest winner on the night.

“The 75-year-old OTP Group has surpassed EUR 100bn in total assets, while our ROE is consistently above 20% and we are the 4th most stable bank in Europe,” OTP Group Chairman-CEO Sandor Csanyi said. The OTP Group also retained the top ranking in CEE for capital with USD 11.3bn in the Top 100 CEE Banks rankings, The Banker noted.