Press release Budapest, January 08, 2014 The Hungarian OTP Bank Nyrt is hiding a risk of approx.

10 billion from the eyes of its investors. The risk is caused by a provision in the banks general terms and conditions which enables the unilateral modification of consumer loan agreements. OTP is involved in a court case, in form of a summary procedure, which may lead to the removal of the respective provision. The claim value has been disclosed to the public by OTPs legal representative. PITEE an independent consumer protection association has started a summary procedure against OTP Bank Nyrt and its mortgage bank subsidiary, OTP Jelzlogbank Zrt in 2011. The summary procedure is based on Directive 2009/22/EC of the European Parliament and of the Council of 23 April 2009 on injunctions for the protection of consumers interests. Injunctions aim at terminating infringements which are contrary to the collective interests of consumers. PITEE claims that the provision applied by OTP is intransparent because it gives OTP practically unlimited power to raise costs for consumers. Since consumers have no contractual defences for challenging unilateral modifications, the application of the provision is an unfair commercial practice. OTPs provision has been in the focus of public interest since 2006, and various government reports have questioned the fairness of the provisions over the past few years (e.g., Report of the Commissioner for Fundamental Rights (OBH 2958/2006) and the 2008 and 2009 annual reports of the Hungarian Competition Authority (GVH)). OTP neglected the concerns which were raised and argued that only a court decision can force it to change its contractual practice. PITEE took on the challenge and started the summary proceeding on the basis of the arguments provided by the government agencies.

If PITEEs claim succeeds, then all previous unilateral modifications of consumer loan agreements will be void. OTP will be forced to indemnify the consumers for unlawful cost increases and to reduce the costs for consumers in the future. OTPs risk amounts to 3,178,448,302,574 Hungarian forints (approx. 10 billion). OTP is being represented in the court case by Dr Pter Nagy, senior partner in the law firm of Nagy & Trcsnyi. The claim value was disclosed by Dr Nagy in the defence statement, dated 22 November 2013. An English translation of the relevant part of the defence statement can be downloaded from our website. PITEE www.pitee.org/english