Best Private Bank in Central and Eastern Europe - OTP Private Banking

OTP Private Banking stands out in its home market of Hungary for wealth management, and has a large market share compared to its competitors.

At the end of 2010, the private bank had 16,784 clients with assets under management reaching HUF609bn (€2.05bn). During 2010 the total assets under management increased by 11.5 per cent compared with 2009, while the growth in client numbers was 5.2 per cent.

The development of discretionary portfolio management is quite low in the Hungarian market, and so OTP Private Banking has been able to carve out a niche in this area.

The private bank aims to be the market leader for a number of years, especially as it has adopted an approach that involves a new risk management methodology. The bank has also seen a shift from benchmark tracking to an absolute return strategy in its portfolios.

The bank not only improved on the size of assets under management in 2010, it also claims to have reached an average 10 per cent yield on its client portfolios.

OTP also cites its high customer satisfaction and points out its low churn rate of 2.6 per cent in the last five years. The customers who left the bank were mostly clients belonging to the lower end of the private banking segment. The bank explains that it has a high retention rate in the high net worth segment.

OTP puts its relatively high retention rate down to the fact that it has been able to maintain effective and intensive dialogue with its clients through its network of advisers. JC