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OTP shares are now worth 15 percent more than at the beginning of the year, and on Friday the bank’s equity market capitalization exceeded HUF 5,100 billion (EUR 13 billion, USD 14 billion). This makes the company the 129th largest bank in global rankings and the 29th largest in Europe, writes Világgazdaság.
The HUF 5,100 billion capitalization is one third of the total capitalization of all companies listed on the Budapest Stock Exchange.
The Hungarian financial institution is on par with competitors in the European ranking such as Dutch ABN AMRO, Polish Santander Bank Polska, and Allied Irish Banks (AIB). The next step would be to approach the banks priced at just under USD 20 billion, where there are indeed some big players, which
stock market prices position PKO Bank Polski, Commerzbank, and Erste here.
Several big names in the banking sector are now clearly worth less than OTP, such as Italy’s Mediobanca, Switzerland’s Julius Baer, Poland’s Pekao, and mBank. However, interestingly, the market values only two German financial institutions more than OTP: Commerzbank and Deutsche.
Based on expectations and target prices, OTP Bank’s share price could still rise significantly.
Especially if the Hungarian financial institution’s bid is the winner for Luminor Bank.
Luminor is present in three countries: Estonia, Latvia, and Lithuania, is the leading independent bank in the Baltics, and the third largest financial services provider in the region, with a 15 percent market share in lending. It has nearly 2,500 employees and serves nearly 900,000 customers through its branches.
Luminor is not a listed company; the banking group is reported to be worth EUR 1.78 billion, but is unlikely to be bought for that much because of its high revenue generation. According to Bloomberg, majority owner Blackstone is asking for a 20 percent premium over book value, meaning the purchase price could be more than EUR 2.1 billion. If all this were priced into OTP’s market value and share price, a price tag of over USD 16 billion would appear next to OTP’s name.
Via Világgazdaság, Featured image via Facebook/OTP Bank