Otp Bank Nyrt · BET:OTP
Otp Bank Nyrt — Otp Bank S/Adr R — 1H 2025 Earnings Presentation
32 slides from Otp Bank Nyrt's earnings presentation, Aug 5, 2025
Slide 1: OTP Group 1H 2025 results
OTP Group 1H 2025 results Conference call – 5 August 2025 László Bencsik, Chief Financial and Strategic Officer
Slide 2: OTP Group is among the most successful banks in Europe
OTP Group is among the most successful banks in Europe Dominant position in CEE countries: Dominant position in 5 countries; 4.2-fold net loan growth and 14 acquisitions in 11 years. 43% of net loans in Eurozone + ERM II countries, 75% within the EU Outstanding profitability: After 23.5% ROE in 2024
Slide 3: OTP Group's semi-annual results increased by 10%
OTP Group’s semi-annual results increased by 10%, driven by growing volumes and improved cost efficiency, considering the prorated recognition of banking tax and supervisory fees in Hungary, booked in one sum at the beginning of the year Consolidated profit after tax Key performance indicators of OT
Slide 4: Special items booked in one sum for the whole year reached HUF 123 billion
Special items booked in one sum for the whole year reached HUF 123 billion. Had these items been booked evenly throughout the year, the 1H profit would have been HUF 73 billion higher 1H 2025 Special items 2025 1H 1H 2025 Difference profit after tax 519 after tax, full-year prorated accounted report
Slide 5: OTP Core's profit increased by 4% despite special taxes
OTP Core’s profit increased by 4% despite facing growing pressure from special taxes. The Bank's business OTP CORE activity strengthened and margins improved, while maintaining prudent provisioning OTP Core profit after tax Key performance indicators of OTP Core (without dividends received from subs
Slide 6: Mortgage and cash loan flows kept on increasing
In 1H 2025 mortgage loans flows kept on increasing, while cash loan disbursements grew by 40%. OTP CORE OTP is an active participant in the workers' loan program. Our market share in household deposits improved ytd Y-o-y change in mortgage loan contractual amounts in 1H 2025 Y-o-y change in cash loa
Slide 7: Demand for micro and small enterprise loans started to pick up
Demand for micro and small enterprise loans started to pick up, while growth in corporate loan growth remained OTP CORE subdued. OTP’s corporate loan market share continued to increase during the first six months of the year Performing corporate loan volume changes (%) OTP Group’s market share in lo
Slide 8: In 1H 2025 foreign subsidiaries continued to deliver strong results
In 1H 2025 foreign subsidiaries continued to deliver strong results. Bulgaria will enter the Eurozone from 1 January 2026 Profit after tax1 (HUF billion) ROE1 Cost / income ratio 1H 2024 1H 2025 1H 2024 2024 1H 2025 1H 2024 2024 1H 2025 DSK Group (Bulgaria) 98 103 22% 22% 20% 35% 32% 34% OTP Bank Sl
Slide 9: The consolidated net interest margin improved both q-o-q and y-o-y
The consolidated net interest margin improved both q-o-q and y-o-y. The sensitivity to EUR rate cuts has moderated since 3Q 2023; the q-o-q increase was partly technical and related to Bulgaria’s Eurozone accession in 2026 Drivers behind the q-o-q change of the consolidated net interest margin Sensi
Slide 10: The consolidated performing loan portfolio grew by 7%
In the first half of the year, the consolidated performing loan portfolio grew by 7%, primarily driven by strong retail lending dynamics YTD performing (Stage 1+2) LOAN volume changes, adjusted for FX effect Cons. Core2 DSK OBS OBH OBSrb Ipoteka OBU CKB OBA OBM OBRu (Hungary) (Bulgaria) (Slovenia) (
Slide 11: Ipoteka achieved a turnaround in cash loan sales
Ipoteka achieved a turnaround in cash loan sales: June was the first month since March 2024 when cash loan IPOTEKA BANK market share improved on a monthly basis. For the rest of the year further market share gains are targeted Loaded CET1 FX adjusted = Tier q-o-q 1 ratio changes in of OTP cash Group
Slide 12: The consolidated deposit volume increased by 5%
In the first half of the year, the consolidated deposit volume increased by 5%, driven largely by the dynamic growth of Hungarian retail deposits YTD DEPOSIT volume changes, adjusted for FX-effect Cons. Core DSK OBS OBH OBSrb Ipoteka OBU CKB OBA OBM OBRu (Hungary) (Bulgaria) (Slovenia) (Croatia) (Al
Slide 13: The Stage 3 ratio decreased to 3.4%
The Stage 3 ratio decreased to 3.4%. Provisioning policy remained conservative compared to regional peers Development of the Group's main credit Own coverage of Stage 1+2 loans compared to regional peers quality indicators at the end of 2Q 2025 80.4% 81.5% 83.4% 82.7% 83.3% 84.0% 1.9% 1.4% Stage 1 0
Slide 14: Out of the HUF 67 billion total risk costs created in 2Q
Out of the HUF 67 billion total risk costs created in 2Q, HUF 34 billion was recognized in Russia. In Hungary, the q-o-q increase was driven by the further extension of the rate cap scheme and precautionary provisions related to tariff risks 2024 2024 1Q 2025 2Q 2025 1H 2025 1H 2025 1 TOTAL RISK COS
Slide 15: In 2Q 2025 the Group's CET1 stood at 18%
In 2Q 2025 the Group’s CET1 stood at 18%. The ytd decrease was mainly due to Basel IV, while eligible profit less dividends covered the capital need of organic growth and supervisory permissions for share buybacks worth HUF 210 billion in total Capital adequacy and MREL ratios (%)1 Decomposition of
Slide 16: By the end of 2025 the Group's capital ratios will be drawn down
By the end of 2025 the Group’s capital ratios will be drawn down by an additional 23 bps due to the elimination of transitional adjustments Loaded CET1 = Tier 1 ratio of OTP Group Peer comparison of capital adequacy and leverage ratios (2Q 2025, %) (2Q 2025, %) CET1 ratio Tier 1 ratio Leverage ratio
Slide 17: Out of 64 European banks, OTP Bank achieved the 13th place
Out of 64 European banks, OTP Bank achieved the 13th place on the 2025 EBA stress test OTP Bank once again ranked in the top third in the OTP Bank achieved second place among its direct European Banking Authority’s comprehensive stress test competitors Three-year change in the fully loaded group-lev
Slide 18: In 2025 OTP Bank was named the second best performing
In 2025 OTP Bank was named the second best performing among the 50 largest publicly listed European banks by S&P Global Market Intelligence . . . . . . . . . . . . . . . . . . Based on the 2024 data. 18
Slide 19: Robust liquidity position: 75% net loan to deposit ratio
Robust liquidity position: 75% net loan to deposit ratio, 230% LCR, 152% NSFR4 and comfortable redemption profile OTP Bank outstanding and recently redeemed FX wholesale bonds OTP Bank FX MREL-eligible bond maturity profile2 Issued Amt. / 2Q 2025 (in EUR million) Issue Maturity Actual Issuance Date
Slide 20: OTP lowered its 2025 growth forecasts
Due to the uncertainty caused by geopolitical developments and tariff measures, OTP lowered its 2025 growth forecasts Hungary Bulgaria Slovenia Croatia 2022 2023 2024 2025F 2022 2023 2024 2025F 2022 2023 2024 2025F 2022 2023 2024 2025F May Aug May Aug May Aug May Aug GDP growth (annual, %) 4.3 -0.9
Slide 21: Management amended its guidance for the Group's 2025 performance
In light of semi-annual results, management amended its guidance for the Group’s 2025 performance In 2025 the management doesn’t expect a meaningful change in the operating 2024 1H 2025 1H 2025 environment, with geopolitical uncertainties persisting. Therefore: audited reported pro-rata FX-adjusted
Slide 22: Cross sections and detailed financials
Cross sections and detailed financials 22
Slide 23: Operating profit increased by 20% y-o-y organically
Operating profit increased by 20% y-o-y organically and FX-adjusted Y-o-Y Q-o-Q Consolidated P&L (in HUF billion) 2024 1H 2024 1H 2025 FX-adj. w/o 1Q 2025 2Q 2025 FX-adj. OBR Net interest income 1,783 878 946 9% 465 481 3% Net fees and commissions 546 260 291 11% 139 152 9% Other net non-interest in
Slide 24: Net interest income advanced by 9% y-o-y organically
Sale of Net interest income advanced by 9% y-o-y organically and FX-adjusted Romania NET INTEREST 1H 2025 2Q 2025 1H 2025 Y-o-Y 2Q 2025 Q-o-Q 1 The 12% y-o-y growth at INCOME (HUF billion) (HUF billion) (HUF billion) (HUF billion) OTP Core occurred primarily on the back of a 26 bps y-o-y improvement
Slide 25: Consolidated net interest margin increased in the second quarter
Consolidated net interest margin increased in the second quarter, driven mainly by the continued trend-like improvement at OTP Core (Hungary) NET INTEREST 2Q 2024 1Q 2025 2Q 2025 MARGIN OTP Group 1 4.27% 4.27% 4.31% At OTP Core the margin grew by 27 bps y-o-y and 10 bps q-o-q, shaped OTP CORE 1 by t
Slide 26: The consolidated performing loan portfolio increased by 4% q-o-q
The consolidated performing loan portfolio increased by 4% q-o-q, driven by continued strong growth in retail exposures. Ipoteka Bank achieved a turnaround in consumer lending, resulting in a 4% q-o-q increase in Uzbek consumer loans Q-o-Q performing (Stage 1+2) LOAN volume changes, adjusted for FX
Slide 27: Consolidated deposits expanded by 2% q-o-q
Consolidated deposits expanded by 2% q-o-q. The increasing trend in Hungarian and Bulgarian retail deposits continued Q-o-Q DEPOSIT volume changes, adjusted for FX-effect Cons. Core DSK OBS OBH OBSrb Ipoteka OBU CKB OBA OBM OBRu (Hungary) (Bulgaria) (Slovenia) (Croatia) (Albania) (Moldova) (Russia)
Slide 28: Semi-annual net fee income increased by 11%
Sale of Semi-annual net fee income increased by 11% y-o-y organically and FX-adjusted Romania NET FEE 1H 2025 2Q 2025 1H 2025 Y-o-Y 2Q 2025 Q-o-Q 1 INCOME (HUF billion) (HUF billion) (HUF billion) (HUF billion) At OTP Core, semi-annual net fees and commissions grew by 8% y-o-y. A OTP Group 291 152 3
Slide 29: The q-o-q increase in other income was due to specific items
Sale of The q-o-q increase in other income was due to specific revenue items booked in Hungary Romania 1H 2025 2Q 2025 1H 2025 Y-o-Y 2Q 2025 Q-o-Q OTHER INCOME (HUF billion) (HUF billion) (HUF billion) (HUF billion) OTP Group 199 114 881 85 74%/75%1 29 34%/30%2 1 The HUF 18 billion q-o-q 1 growth at
Slide 30: Half-year operating costs increased by 10% y-o-y organically
Half-year operating costs increased by 10% y-o-y organically and FX-adjusted 9M 2023 1H 2025 Y-o-Y Y-o-Y, FX-adjusted 1 At OTP Core, 1H operating expenses OPERATING COSTS (HUF (HUF billion) billion) (HUF billion) (HUF billion) grew by 10%: other administrative costs were stable y-o-y, which mitigate
Slide 31: Disclaimers and contacts
Disclaimers and contacts This presentation contains statements that are, or may be deemed to be, “forward-looking statements” which are prospective in nature. These forward- looking statements may be identified by the use of forward-looking terminology, or the negative thereof such as “plans", "expe
Slide 32: Questions and Answers session
Questions and Answers session 32