Otp Bank Nyrt · BET:OTP
Otp Bank Nyrt — OTP Bank — Investor Presentation (September 2005)
34 slides from Otp Bank Nyrt's investor presentation, Sep 20, 2005
Slide 1: Future growth opportunities on a regional base
OTP Bank Future growth opportunities on a regional base INVESTOR PRESENTATION Presented by: Dr. Zoltán Spéder, CFO September, 2005
Slide 2: Agenda
Macroeconomic environment and financial intermediary in Hungary Key facts on OTP Bank Financial performance (consolidated, IFRS) Business performance on the main market segments in Hungary Retail banking Corporate banking Fund management Insurance OTP Bank in the Region
Slide 3: Main macroeconomic indicators
9/20/2005 Main macroeconomic indicators 2003 2004 1H 2005 2005F* 2006F* Real GDP growth 2.9% 4.2% 3.5% 3.8% 3.9% Household consumption 7.2% 2.5% 2.3% 2.5% 3.3% Investment growth 2.5% 7.9% 6.5% 7.1% 7.8% Budged deficit (cash flow based, HUF bn) -1,054 -1,277 -988 -1,170 -1,315 as a % of GDP -6.2% -6.
Slide 4: Above EU-average economic growth but still significant imbalances
9/20/2005 Above EU-average economic growth but still significant imbalances GDP growth comparison Internal and external balances Hungary’s dependence on EU growth 2000 2001 2002 2003 2004 2005F 2006F 6% 0% 5.2% -1% 5% -2% 4.2% 3.9% -3% 4% 3.8% 3.8% -3.0% 3.5% -4% 2.9% -4.4% 3% 3.2% -5% -5.4% -5.4% -
Slide 5: Significant rate cuts due to decelerating inflation
9/20/2005 Significant rate cuts due to decelerating inflation INTEREST RATES 14% CHANGES OF BASE RATE 13% 31-Dec-03, 12.50% 2003 + 400 bp 12% 2004 - 300 bp 11% 31-Dec-04, 9.50% 2005 25 January 2005 -50 bp 10% 22 February 2005 -75 bp 9% 3-Jan-03, 8.50% 30 March 2005 -50 bp 8% 30-Aug-05, 6.25% 26 Apri
Slide 6: Slowly changing investment patterns…
9/20/2005 Slowly changing investment patterns… SELECTED COMPONENTS OF PFA RETAIL LOANS OUTSTANDING HUF bn HUF bn 15,000 CAGR 4,500 90% Total PFA 14,024 CAGR 2000-2005F 4,218.9 CAGR (2000-2005F) 2000-2005F 1,578 1,541 +12.3% 12,535 +11.1% Cash 4,000 80% +43.7% 11,805 12,000 3,647.9 1,476 Retail 3,500
Slide 7: …but there is still room for further growth of banking penetration
9/20/2005 …but there is still room for further growth of banking penetration BY TOTAL ASSETS RETAIL SECTOR 35,000 93.8% 100% 8,000 40% 257% 90% 7,000 35% 30,000 7,263 77.6% 88.1% 73.0% 80% 81.6% 6,000 30% 25,000 25.2% 25.5% 6,055 64.7% 62.6% 70% 24.6% 24.1% 24.9% 24.9% 5,000 5,598 25% 116% 5,167 20,
Slide 8: Agenda
Macroeconomic environment and financial intermediary in Hungary Key facts on OTP Bank Financial performance (consolidated, IFRS) Business performance on the main market segments in Hungary Retail banking Corporate banking Fund management Insurance OTP Bank in the Region
Slide 9: OTP Bank is the largest bank in Hungary with a significant regional presence
9/20/2005 OTP Bank is the largest bank in Hungary with a significant regional presence OWNERSHIP STRUCTURE on June 30, 2005 … having* 23.8% of total banking assets, 27.2% of total deposits, 21.9 of total loans and Government International 38.1%** of the banking profits Treasury shares held owner 0.4
Slide 10: OTP Group managed to keep its leading position in the Hungarian financial system
9/20/2005 OTP Group managed to keep its leading position in the Hungarian financial system MARKET SHARE* – TOTAL ASSETS MARKET SHARE* – TOTAL LOANS HUF bn HUF bn 5,000 30% OTP Bank 3,500 35% total loans 4,500 25.1% 27% 3,000 30% 24.5% 24.6% 23.8% 23.7% 24.2% 2,500 21.9% 25% Group total 4,000 24% loa
Slide 11: Financial highlights
9/20/2005 Financial highlights OTP Group consolidated, based on IFRS 1H 2004 1H 2005 Y-o-Y 2Q 2004 1Q 2005 2Q 2005 Y-o-Y Q-o-Q Total assets (HUF bn) 3,609.2 4,693.0 30.0% 3,609.2 4,737.6 4,693.0 30.0% -0.9% Total loans and advances (HUF bn) 2,227.1 2,889.1 29.7% 2,227.1 2,742.1 2,889.1 29.7% 5.4% To
Slide 12: The share price growth reflects investors' confidence
9/20/2005 The share price growth reflects investors’ confidence OTP SHARE’S PERFORMANCE, 350% in 1-8M, 2005 Turnover (daily av.) HUF 5.9 bn 300% Min. price (closing) HUF 5,590 (06/01/05) Max. price (closing) HUF 7,970 (30/08/05) 250% Market capitalization HUF 2,232 bn (on 30/08/2005) EUR 9.1 bn 200%
Slide 13: Agenda
Macroeconomic environment and financial intermediary in Hungary Key facts on OTP Bank Financial performance (consolidated, IFRS) Business performance on the main market segments in Hungary Retail banking Corporate banking Fund management Insurance OTP Bank in the Region
Slide 14: Consolidated total assets grew by 12.6% in 1H 2005
9/20/2005 Consolidated total assets grew by 12.6% in 1H 2005 LIABILITIES ASSETS HUF bn HUF bn 5,000 Q-o-Q: - 0.9% 4,737.6 4,693.0 5,000 4,737.6 4,693.0 Other Y-o-Y: + 30.0% Equity 4,500 4,166.6 4,500 4,166.6 4,000 3,863.8 4,000 3,863.8 Fixed assets 3,609.2 3,609.2 3,500 Other 3,500 Investment 3,000
Slide 15: Gross loans increased by 15% and deposits by 8% in 1H 2005
9/20/2005 Gross loans increased by 15% and deposits by 8% in 1H 2005 LOANS, GROSS DEPOSITS HUF bn Q-o-Q: + 5.4% HUF bn Q-o-Q: -3.9% 3,200 Y-o-Y: +29.7% 2,981 3,500 Y-o-Y: +21.6% 3,272 3,145 2,827 2,800 2,586 2,902 2,447 680 3,000 2,724 2,299 611 2,586 2,400 532 499 2,500 2,000 449 2,380 2,000 2,156
Slide 16: NPL ratio fall to 3.3% while portion of total qualified loans was 12.4%
9/20/2005 NPL ratio fall to 3.3% while portion of total qualified loans was 12.4% on June 30, 2005 HUF bn QUALIFIED LOANS NPL RATIO 400 16% 350 53 23 12.1% 12.4% 300 50 11.3% 11.7% 11.6% 41 46 24 12% 250 20 26 39 23 23 3.7% 3.3% 20 25 25 3.6% 3.5% 3.5% 200 24 8% 150 272 100 207 211 229 177 8.4% 9.1%
Slide 17: Revenues reached HUF 235 bn in 1H 2005, 19% higher than a year before
9/20/2005 Revenues reached HUF 235 bn in 1H 2005, 19% higher than a year before HUF bn REVENUES HUF bn INTEREST INCOME 140 124.1 Q-o-Q: +12.1% Q-o-Q: +4.7% 110.7 120 111.1 113.1 111.4 116.7 120 105.3 109.1 2.1 Y-o-Y: +22.5% 103.0 Y-o-Y: +13.3% 101.3 1.4 2.5 100 100 2.7 2.7 45.1 30.8 29.7 30.0 28.1 c
Slide 18: Net interest margin was 6.52% in 2Q 2005, 64 bp higher than 1Q
9/20/2005 Net interest margin was 6.52% in 2Q 2005, 64 bp higher than 1Q NET INTEREST MARGIN NET FEE MARGINS 8.0% 7.39% 2.5% 2.30% 6.90% 2.20% 7.0% 6.61% 6.52% 2.3% 2.15% 2.18% 2.13% 7.05% 5.88% 2.1% 6.0% 6.48% 2.12% 6.17% 1.9% 2.06% 6.00% 5.0% 1.89% 1.91% 5.28% 1.7% 1.85% 4.0% 1.5% 2Q 04 3Q 04 4Q 0
Slide 19: In 1H 2005, total non interest expenses were 15.6% higher than a year before
9/20/2005 In 1H 2005, total non interest expenses were 15.6% higher than a year before HUF bn EXPENSES/AVG. TOTAL ASSETS NON INTEREST EXPENSES - COMPONENTS HUF bn Q-o-Q: +21.2% 2.2% 2.06% Y-o-Y: + 18.3% 70 60.6 1.8% 1.62% 0.7% 1.55% 60 53.1 1.50% 1.35% 50 44.9 43.3 43.8 1.4% 0.5% 26.7 0.3% 0.5% 0.5%
Slide 20: Main performance indicators
9/20/2005 Main performance indicators RETURN ON AVERAGE EQUITY RETURN ON AVERAGE ASSETS 45% 41.0% 4.5% 4.19% 40% 36.4% 35.5% 4.0% 3.51% 33.6% 3.45% 35% 3.5% 3.23% 30% 25.6% 3.0% 2.67% 25% 2.5% 20% 2.0% 15% 1.5% 10% 1.0% 5% 0.5% 0% 0.0% 2Q 04 3Q 04 4Q 04 1Q 05 2Q 05 2Q 04 3Q 04 4Q 04 1Q 05 2Q 05 PROD
Slide 21: Agenda
Macroeconomic environment and financial intermediary in Hungary Key facts on OTP Bank Financial performance (consolidated, IFRS) Business performance on the main market segments in Hungary (HAR) Retail banking Corporate banking Fund management Insurance OTP Bank in the Region
Slide 22: OTP Group maintained its over 35% market share in retail deposits in Hungary
9/20/2005 OTP Group maintained its over 35% market share in retail deposits in Hungary RETAIL DEPOSITS OF CREDIT INSTITUTIONS RETAIL DEPOSITS OF OTP GROUP HUF bn Q-o-Q: +1.6% HUF bn 6,000 Y-o-Y: +10.2% 2,500 Q-o-Q: +1.5% 5,122 5,184 5,268 Y-o-Y: +8.0% 4,779 4,874 5,000 564 573 585 2,000 1,816 1,836
Slide 23: OTP Group kept its 53% market share in HUF housing loans
9/20/2005 OTP Group kept its 53% market share in HUF housing loans, while share in FX housing loans increased to 18% HOUSING LOANS OF CREDIT INSTITUTIONS MARKET SHARE – OTP GROUP HUF bn 60% 53.4% 53.3% 53.3% 53.2% 53.1% 2,500 Q-o-Q: + 5.1% Y-o-Y: + 19.6% 2,055.3 50% 1,910.8 1,956.4 52.0% 2,000 1,819
Slide 24: Subsidized loans of OTP Mortgage Bank represented 78% of total housing loans
9/20/2005 Subsidized loans of OTP Mortgage Bank represented 78% of total housing loans of OTP Group in Hungary GROUP SUBSIDIZED HOUSING LOANS HOLDERS OF CMBS HUF bn HUF bn 40 900 Approval Disboursement Transfer to MB 789.5 787.5 796.1 35 713.3 727.9 49.3 49.3 49.3 30 36.6 50.1 63.3 61.2 69.8 77.9 77
Slide 25: Household's consumer loans of OTP Group increased by 17% in 1H 2005
9/20/2005 Household’s consumer loans of OTP Group increased by 17% in 1H 2005 CONSUMER LOANS OF CREDIT INSTITUTIONS MARKET SHARE – OTP GROUP HUF bn 35% 1,500 Q-o-Q: + 9.8% 29.7% 29.7% 28.7% 28.9% Y-o-Y: + 30.4% 1,233.4 30% 26.4% 1,200 1,093.1 1,123.5 23.2% 23.1% 24.0% 382.2 25% 24.1% 1,017.7 22.9% 9
Slide 26: OTP Group is amongst the top players also in the corporate banking sector
9/20/2005 OTP Group is amongst the top players also in the corporate banking sector CORPORATE LOANS CORPORATE DEPOSITS (Volume of credit institutions and OTP Group) (Volume of credit institutions and OTP Group) HUF bn HUF bn 7,000 6,447 6,469 3,500 6,237 3,089 5,790 5,957 2,966 2,934 6,000 3,000 2,6
Slide 27: OTP Group managed 39% of mutual funds and 23% of pension funds in Hungary
9/20/2005 OTP Group managed 39% of mutual funds and 23% of pension funds in Hungary VOLUME OF MUTUAL FUNDS AND OTP MARKET SHARE NET ASSET VALUE OF OTP FUNDS HUF bn HUF bn 1,800 44% 600 Q-o-Q: + 9.7% 564.4 Q-o-Q: + 14.1% 1,553 514.3 1,600 Y-o-Y: + 82.0% 43% Y-o-Y: +80.8% 1,362 500 1,400 42% 405.8 1,2
Slide 28: OTP Garancia is the 5th largest insurance company in Hungary and 2nd in life insurance
9/20/2005 OTP Garancia is the 5th largest insurance company in Hungary and 2nd in life insurance* LIFE AND NON-LIFE PREMIUM INCOME (MARKET) LIFE AND NON-LIFE PREMIUM INCOME (OTP GARANCIA) HUF bn 598.5 HUF bn 600 100 500 446.8 80 355.2 400 339.6 60 55.6 302.5 300 272.4 42.3 199.7 40 28.9 35.2 184.9 1
Slide 29: Agenda
Macroeconomic environment and financial intermediary in Hungary Key facts on OTP Bank Financial performance (consolidated, IFRS) Business performance on the main market segments in Hungary Retail banking Corporate banking Fund management Insurance OTP Bank in the Region
Slide 30: OTP Bank has made significant progress towards establishing a regional financial group
9/20/2005 OTP Bank has made significant progress towards establishing a regional financial group OTP Bank Group in Central-Eastern Europe OTP Group OTP Subsidiaries 1H 2005 data, according to IFRS Number of branches** 933 Number of clients ~8 million Target countries OTP Banka Slovensko Total assets
Slide 31: Financial highlights of DSK Bank
9/20/2005 Financial highlights of DSK Bank (Consolidated, based on IFRS) 1H 2004 2004 1H 2005 Y-o-Y 2005P 2005F Y-o-Y(F) Balance Sheet (HUF bn) Total assets 347.6 410.5 510.0 46.7% 570.3 539.7 31.5% Total loans (gross) 213.4 273.4 333.2 56.1% Total loans (net) 209.3 267.9 324.5 55.0% 396.3 361.9 35.
Slide 32: Main financial data of the other foreign subsidiaries
9/20/2005 Main financial data of the other foreign subsidiaries (Based on IFRS) OTP Banka Slovensko OTP Bank Romania Nova Banka 1Q 2005 2Q 2005 Q-o-Q 1Q 2005 2Q 2005 Q-o-Q 2Q 2005 Balance Sheet (HUF bn) Total assets 204.9 240.6 17.4% 48.3 48.8 1.0% 269.9 Total loans and advances 143.4 168.7 17.7% 16
Slide 33: OTP share's performance on the Budapest Stock Exchange
9/20/2005 OTP share’s performance on the Budapest Stock Exchange (From August 10, 1995 to August 30, 2005) 9,000 30/08/2005, HUF 7,970 8,000 01/03/2005, HUF 7,550 7,000 6,000 13/05/2005, HUF 5,820 5,000 15/04/2004, HUF 4,330 4,000 10/05/2004, HUF 3,639 3,000 06/05/2002, HUF 2,570 2,000 20/01/2000, H
Slide 34: Further information; Forward looking statements
Further information For further information please contact OTP Bank Investor Relations Tel: + 36 1 473 5460 or + 36 1 473 5457 Fax: + 36 1 331 6312 E-mail: investor.relations@otpbank.hu Or visit our website: www.otpbank.hu Forward looking statements This presentation contains certain forward-looking