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Reports: OTP Bank eyes dividend hike, scans new countries for acquisitions

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Reports: OTP Bank eyes dividend hike, scans new countries for acquisitions

OTP Bank Nyrt. plans to pay a dividend of 61.3 billion Hungarian forints on its 2017 net profit, an increase of 15% compared with a dividend of 53 billion forints offered on its 2016 result, Reuters reported March 2, citing the lender's CEO Sandor Csanyi.

The dividend still needs to be approved by shareholders and could be affected by the lender's acquisition plans, according to the report. Acquisitions have priority over dividends, and OTP Bank could even raise additional capital to finance the potential purchase of a suitable acquisition target, although such a target has not yet appeared, Csanyi was also cited by Reuters in a separate, same-day report.

OTP Bank is eyeing two European countries where it is not yet present for potential M&A targets, the executive noted.

Csanyi also said that he expects problems with completing the acquisition of Banca Româneasca SA as the regulatory approval needed to finalize the deal has been pending for a long time.

As of March 2, US$1 was equivalent to 254.85 Hungarian forints.