Hungary's largest lender put $17 million into the Latin American bank in June, building on a $30 million injection the prior year to end up just shy of a 10% stake. A few months later, the Paraguayan lender collapsed, turning what looked like a strategy peek into digital banking into a write up of what went wrong.
OTP described its position as a "financial investment" only, saying it came without any control or management role at Ueno. The bank also stressed the exposure is small next to its own balance sheet, citing $17 billion in equity and annual profit north of $3 billion, and said the move aligns with its "conservative risk-taking policy" while it monitors developments.
The failure did not stop at finance. President Santiago Peña, who previously invested in Ueno's parent company, offered his resignation as impeachment pressure mounted. The episode put Paraguay's leadership in the same headlines as a suddenly defunct neo bank.
Back when OTP was buying, Ueno's pitch as a fast growing South American digital bank offered lessons worth studying. On an August investor call, Deputy CEO Laszlo Bencsik said, "Ueno is very exciting," praised its growth and its payment system, and added, "We really like that story and the more we know, the more we like it."
One misstep sits against a long run of deals: OTP has bought 25 banks over roughly 25 years, with most of them located in eastern Europe and the Balkans. It also expanded into central Asia by acquiring a bank in Uzbekistan in 2022.
Unexpected losses remind investors that smarter tools can help manage risk and opportunity. We're hosting our first ever investor livestream on 11/17 to show you how to use ChatGPT and Claude to invest like a pro, hosted by Briefs Finance CEO Jaspreet Singh. Save your seat.
The lender is now seeking regulatory approvals to purchase Luminor Bank AS in the Baltics, which would be its biggest acquisition to date. For portfolios, the scale matters. OTP highlighted that the Ueno stake was tiny relative to its capital and profits, and it reiterated its conservative approach as it keeps an eye on events.
Thoughtful use of new technology can give investors a clearer edge over uncertainty. On 11/17, our CEO Jaspreet Singh goes live for our first ever investor livestream on how to use ChatGPT and Claude to invest like a pro. Register to join him.
How To Use ChatGPT & Claude To Research Stocks Like A Pro
Save my seat →You’re in!
Make sure to check your inbox for the first email.
Before you go
We’re hosting our first ever livestream on how investors can use ChatGPT & Claude to invest like a pro. It’s on 11/17 and is hosted by our CEO Jaspreet Singh.
Click here to join →
