Otp Bank Nyrt · BET:OTP
Otp Bank Nyrt — Q4 2024 Earnings Presentation
44 slides from Otp Bank Nyrt's earnings presentation, April 2025
Slide 1: OTP Group – Strong results and capital yield high returns
OTP Group – Strong results and capital yield high returns Investor presentation Based on 4Q 2024 results
Slide 2: OTP Group - Highlights
OTP Group - Highlights Dominant position in CEE countries: Dominant position in 5 countries; 4-fold loan growth and 14 acquisitions in 10 years. 44% of net loans in Eurozone + ERM2 countries, 76% within the EU Outstanding profitability: ROE exceeded 23.5% in 2024 Strong portfolio quality: 34 bps cre
Slide 3: In 2024 OTP Group's profit after tax increased by 19%
In 2024 OTP Group’s profit after tax increased by 19%1, margin and cost efficiency improved Consolidated profit after tax Key performance indicators of OTP Group (HUF billion) (%) Direct effect of acquisitions Return on equity NIM Cost / income Credit risk +9% 1,076 990 ratio cost rate 86 319 27.2 4
Slide 4: Operating profit increased by 19% organically and FX-adjusted
Operating profit increased by 19% organically and FX-adjusted Y-o-Y Q-o-Q Consolidated P&L (in HUF billion) 2023 2024 3Q 2024 4Q 2024 FX-adj. organic1 FX-adj. w/o OBR Net interest income 1,462 1,783 20% 444 461 2% Net fees and commissions 478 546 13% 137 148 7% Other net non-interest income 306 306
Slide 5: OTP Core realized HUF 270 billion adjusted profit after tax
OTP Core realized HUF 270 billion adjusted profit after tax without dividends received from subsidiaries, up by OTP CORE 16% y-o-y, mainly due to the improving margin. In 2025 special bank taxes are set to grow OTP Core profit after tax Key performance indicators of OTP Core (without dividends recei
Slide 6: Mortgage loan contractual amounts doubled and cash loan sales increased by 65% at OTP Core
Mortgage loan contractual amounts doubled and cash loan sales increased by 65% at OTP Core. OTP CORE The Bank’s market share in household deposits and cash loans further increased Y-o-y change in mortgage loan contractual amounts in 2024 Y-o-y change in cash loan contractual amounts in 2024 Growth i
Slide 7: Demand for corporate loans started to pick up
Demand for corporate loans started to pick up, the stock grew by 5% y-o-y without the repayment of a large OTP CORE exposure towards a foreign client, thus OTP’s corporate credit market share improved y-o-y Performing corporate loan volume changes (%) OTP Group’s market share in loans to Hungarian (
Slide 8: Foreign subsidiaries continued to deliver strong performance
Foreign subsidiaries continued to deliver strong performance Profit after tax1 (HUF billion) ROE1 Cost / income ratio 2023 2024 2023 2024 2023 2024 DSK Group (Bulgaria) 198 201 25% 22% 32% 32% OTP Bank Slovenia 112 113 20% 16% 40% 42% OTP Bank Croatia 53 62 14% 14% 46% 47% OTP Bank Serbia 58 66 17%
Slide 9: Consolidated performing loans grew by 9% organically and FX-adjusted
Consolidated performing loans grew by 9% organically and FX-adjusted, driven by retail significantly outpacing corporate across the Group. Ukrainian corporate and consumer loan growth got back on track Y-o-Y performing (Stage 1+2) LOAN volume changes, adjusted for FX effect Cons. Core2 DSK OBS OBH O
Slide 10: Consolidated deposits increased by 6% y-o-y
Consolidated deposits increased by 6% y-o-y without the sale of Romania and FX-adjusted, while Hungarian household deposits grew by 10%. Uzbek deposits expanded by nearly 50% and the net LTD ratio decreased from 264% to 178% y-o-y Y-o-Y DEPOSIT volume changes, adjusted for FX-effect Cons. Core DSK O
Slide 11: Consolidated net interest margin improved by 34 bps y-o-y
Consolidated net interest margin improved by 34 bps y-o-y, attributable to the bounce-back in Hungary. Sensitivity to EUR rate cuts has moderated significantly in recent quarters Drivers behind the y-o-y change of the consolidated net interest margin Sensitivity to rate changes +2 bps -3 bps +6 bps
Slide 12: The Stage 3 ratio decreased to 3.6%
The Stage 3 ratio decreased to 3.6%. 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 4Q 2024 82.7% 83.1% 83.6% 83.8% 83.3% 1.9% 1.4% Stage 1 ratio 1
Slide 13: Group's CET1 ratio improved to 18.9% and the CAR to 20.3%
Group’s CET1 ratio improved to 18.9% and the CAR to 20.3% due to strong capital generating capacity Capital adequacy Regulatory Decomposition of the y-o-y change in the CET1 ratio and MREL ratios (%)1 requirements 2 (based on the prudential scope of consolidation, % / changes in percentage points) (
Slide 14: Robust liquidity position: 74% net loan to deposit ratio
Robust liquidity position: 74% net loan to deposit ratio, 266% LCR, 158% NSFR and relatively benign redemption profile OTP Bank outstanding FX wholesale bonds OTP Bank FX MREL-eligible bond maturity profile2 Issued Amt. / (in EUR million) Issue Maturity Actual Issuance 1,166 Instrument Call Date Ext
Slide 15: OTP Bank's issuer credit ratings exceed the Hungarian sovereign ratings
OTP Bank’s issuer credit ratings exceed the Hungarian sovereign ratings by one notch at S&P Global and Scope Hungarian sovereign, OTP Bank and OTP Mortgage Bank ratings Composition of main ratings by Moody’s and S&P Moody’s S&P Global Macro Factors Macro Factors Weighted Macro Profile Moderate- Anch
Slide 16: ESG development according to strategic goals
ESG development according to strategic goals Green loan stock1 ESG RESULTS AND TARGETS (consolidated, HUF billion) 4Q 2024 Actual Long-term KPIs Plan Building the Corporate: HUF 834 billion Green loans of HUF 1,500 1,500 green loan billion in total by 2025 for the Retail: HUF 193 billion Group portf
Slide 17: OTP Group's net loan book grew 4-fold over the last 10 years
OTP Group’s net loan book grew 4-fold over the last 10 years, outpacing banking groups active in the CEE region Consolidated net loan growth Compounded annual average net loan growth of regional (FX-adjusted, HUF billion) banking groups between 2014 – 2024 Acquisitions Organic growth OTP Group 15% x
Slide 18: Total assets exceeded EUR 100 billion
Total assets exceeded EUR 100 billion driven by successful acquisitions and dynamic organic growth. Profit contribution of foreign subsidiaries showed a trend-like increase over the last several years and hit 68% in 2024 Total assets development of OTP Group (in EUR billion) Dominant position in CEE
Slide 19: 76% of the total net loan book is invested in EU countries
76% of the total net loan book is invested in EU countries, while the share of Russia and Ukraine declined to 6% Breakdown of the consolidated net loan book Share of Hungary in the Group's net loan portfolio By country By product 47% x0.7 32% HUF 23,362 bn HUF 23,362 bn 100% 100% 2014 2024 Hungary1
Slide 20: Margin recovered, cost efficiency improved, loan portfolio quality stable
In recent years the margin has recovered, and cost efficiency improved. Since 2017, loan portfolio quality has been stable and the credit risk cost ratio has been relatively low 2003-2008 2009-2013 average average 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 ROE 29.4% 8.3% -7.4% 5.1% 15.4%
Slide 21: OTP Group outperformed regional peers in ROE and ROE/COE
In ROE and ROE/COE terms, OTP Group outperformed its regional peers both in 2023 and 2024 ROE (%) ROE / COE P/B 11 April 2025 OTP 23.5 1.8 1.3 UniCredit 17.7 1.1 1.4 KBC 15.0 1.2 1.5 2024 Erste 15.2 1.2 1.4 Intesa 17.0 1.3 1.5 Raiffeisen 9.4 0.5 0.5 2023 annual averages OTP 27.2 1.9 1.0 UniCredit 16
Slide 22: Compared to regional competitors, OTP has higher margins and better cost efficiency
Compared to its regional competitors, OTP Group has higher margins, better cost efficiency and lower leverage, with its credit risk cost rate being somewhat higher NIM (%) Cost / income (%) Credit risk cost rate (%) Leverage ratio (%) 4.28 41.3 0.38 10.4 2.03 37.9 0.15 5.6 2.09 43.5 0.10 5.5 2024 2.
Slide 23: Valuation multiples have not yet recovered to pre-war levels
Valuation multiples have not yet recovered to pre-war levels OTP Bank's P/E ratio OTP Bank's P/B ratio ! ! ! ! Updated on 15 April 2025. Source: Bloomberg. 23
Slide 24: OTP Bank named top performing among largest listed European banks by S&P
In 2024 OTP Bank was named the top performing among the 50 largest publicly listed European banks by S&P Global Market Intelligence S&P Global Market Intelligence performance ranking, 2024 Ranking metrics based on 2023 data, according to S&P’s methodology ROAE Net interest margin Indicator (16%) (16
Slide 25: Capital strength demonstrated by the latest EBA stress test
The capital strength and stability of OTP Bank has been demonstrated again by the outcome of the latest stress test conducted by the European Banking Authority in cooperation with the National Bank of Hungary OTP Bank achieved the 4th best result among the OTP Bank enjoyed high rankings even in peer
Slide 26: OTP Group's performance recognized by professional organizations
OTP Group’s outstanding performance has traditionally been recognized by professional organizations 26
Slide 27: In 2025 the operating environment is expected to improve somewhat
In 2025 the operating environment is expected to improve somewhat Hungary Bulgaria Slovenia Croatia 2022 2023 2024F 2025F 2022 2023 2024F 2025F 2022 2023 2024F 2025F 2022 2023 2024F 2025F GDP growth (annual, %) 4.3 -0.9 0.5 2.51 4.0 1.9 2.8 3.2 2.7 2.1 1.6 2.0 7.3 3.3 3.8 3.5 Unemployment (%) 3.6 4.
Slide 28: Management guidance for the Group's 2025 performance
Management guidance for the Group’s 2025 performance In 2025 the management expects marginal improvement in the operating environment. Therefore: o FX-adjusted organic performing loan volume growth may be above 9% reported in 2024. o The net interest margin may be similar to the 4.28% achieved in 20
Slide 29: Considerations concerning capital allocation
Considerations concerning capital allocation The Bank may continue to buy back treasury shares. The latest buyback programme amounting to HUF 60 billion announced on 24 January 2025 was completed on 10 February. The Bank will continue its practice to announce new buyback programmes on the day they a
Slide 30: Further details and financials
Further details and financials 30
Slide 31: OTP Group provides universal banking services to more than 17 million customers
OTP Group provides universal banking services to more than 17 million active customers in 11 countries, in many of them with dominant market position Major Group members Total assets1 Systemic position in Hungary OTP Bank Albania Moldova 4Q 2024 market share (%) Russia Montenegro Russia Ukraine 5% T
Slide 32: 76% of the net loan book is invested in EU countries, Hungary's share 32%
76% of the total net loan book is invested in EU countries, while Hungary’s share stood at 32% Breakdown of the consolidated net loan book Net loan book, 4Q 2024 By country By product Hungary1 HUF 7,418 bn Bulgaria HUF 4,667 bn Slovenia HUF 2,856 bn Leasing Leasing Leasing Corporate 8% Mortgage 8% 8
Slide 33: 34% of the consolidated deposit book is held in Hungary
34% of the consolidated deposit book is held in Hungary, while Bulgaria and Slovenia together hold another third. Household volumes account for 57% of the total deposit base Breakdown of the consolidated deposit base Deposit base, 4Q 2024 By country By product Hungary1 HUF 10,914 bn Bulgaria HUF 6,1
Slide 34: Hungarian loan penetration levels are still low in regional comparison
Hungarian loan penetration levels are still low in regional comparison implying good volume growth potential Market penetration levels in Hungary in ... Net customer loan to deposit ratio in the 3Q 2024 data for other CEE/CIS Hungarian credit institution system countries (in % of GDP) 118% 78% 1Q 20
Slide 35: Net interest income advanced by 20% y-o-y organically and FX-adjusted
Net interest income advanced by 20% y-o-y organically and FX-adjusted. The 2% FX-adjusted q-o-q growth Inorganic was partly due to improving Hungarian margins, and volume expansion in Bulgaria and Croatia effects NET INTEREST 2024 4Q 2024 2024 Y-o-Y 4Q 2024 Q-o-Q 1 The 34% y-o-y jump in OTP Core NII
Slide 36: The 4Q consolidated NIM remained stable y-o-y
The 4Q consolidated NIM remained stable y-o-y supported mostly by the improvement in Hungary, whilst the margin in most EUR-linked countries continued to erode slowly NET INTEREST 4Q 2023 3Q 2024 4Q 2024 MARGIN 1 At OTP Core the margin started to gradually bounce back from the lows OTP Group 4.27% 4
Slide 37: Net fee income went up by 13% y-o-y
Net fee income went up by 13% y-o-y organically and FX-adjusted. In 4Q, the 7% growth was mainly induced Inorganic by the year-end performance bonuses at OTP Fund Management (Hungary) and card-related one-offs effects NET FEE 4Q 2024 2024 Y-o-Y 4Q 2024 Q-o-Q 1 The 11% y-o-y increase in 2024 INCOME (
Slide 38: Other income remained broadly flat
Other income remained broadly flat, despite the materially lower fair value adjustment of subsidized housing Inorganic and baby loans at OTP Core effects 2024 4Q 2024 2024 Y-o-Y 4Q 2024 Q-o-Q OTHER INCOME (HUF billion) (HUF billion) (HUF billion) (HUF billion) OTP Group 306 97 0 -81 0%/-2%1 132 2 3%
Slide 39: Operating costs increased by 11% organically and FX-adjusted
Inorganic Operating costs increased by 11% organically and FX-adjusted effects 9M 2023 2024 Y-o-Y Y-o-Y, FX-adjusted OPERATING COSTS (HUF (HUF billion) billion) (HUF billion) (HUF billion) 1 At OTP Core operating expenses were 7% higher than in 2023: the jump in OTP Group 1,089 1111 109 11%/11%1 103
Slide 40: Consolidated total risk costs increased y-o-y
Consolidated total risk costs increased y-o-y as a joint effect of somewhat higher credit risk cost rate, and impairments on Russian government bonds amongst other provisions for the sake of increasing their own provision coverage ratio 2023 2024 TOTAL RISK COST 2023 credit risk 3Q 2024 4Q 2024 2024
Slide 41: Development of the Stage 1, Stage 2 and Stage 3 ratios
Development of the Stage 1, Stage 2 and Stage 3 ratios Cons. Core DSK OBS OBH OBSrb Ipoteka OBU CKB OBA OBM OBRu Merk. (Hungary) (Bulgaria) (Slovenia) (Croatia) (Serbia) (Uzbek.) (Ukraine) (Monten.) (Albania) (Moldova) (Russia) (Hung. leasing) 2021 81.5% 78.0% 84.0% 86.0% 80.0% 89.9% - 87.1% 76.7% 8
Slide 42: Development of own provision coverage ratios in different Stage categories
Development of the own provision coverage ratios in different Stage categories Cons. Core DSK OBS OBH OBSrb Ipoteka OBU CKB OBA OBM OBRu Merk. (Hungary) (Bulgaria) (Slovenia) (Croatia) (Serbia) (Uzbek.) (Ukraine) (Monten.) (Albania) (Moldova) (Russia) (Hung. leasing) 2021 1.0% 1.0% 1.0% 0.3% 0.6% 0.
Slide 43: In the last 10 years 14 acquisitions were completed
In the last 10 years 14 acquisitions were completed. As a result of the Ipoteka Bank acquisition in Uzbekistan, in 2023 OTP Group entered the Central Asian region Country Date of Net loans Market share Book value Target bank (seller) closing (HUF billion) 1 before / after (%) (EUR million) 2016 2015
Slide 44: Important information, disclaimers and contacts
Important information, disclaimers and contacts Referring to both equity and fixed income investors: This presentation has been prepared by OTP Bank Nyrt. ("OTP Bank") and is the sole responsibility of OTP Bank. This presentation and the information contained herein is strictly confidential to the r