Otp Bank Nyrt · BET:OTP
Otp Bank Nyrt — Debt Investor Presentation (August 2024)
23 slides from Otp Bank Nyrt's debt investor presentation, August 2024
Slide 1: OTP Group – Strong results and capital provide resilience in turbulent times
OTP Group – Strong results and capital provide resilience in turbulent times Investor presentation Based on 2Q 2024 results
Slide 2: OTP Group - Highlights
OTP Group - Highlights Dominant position in CEE countries: No.1 in 5 countries based on net loans; 3.6-fold loan growth and 11 acquisitions in 7 years. 42% of net loans in Eurozone + ERM2 countries, ~80% within the EU Outstanding profitability: 2023 ROE exceeded 27% and reached 23.6% in 1H 2024 Stro
Slide 3: OTP Group offered universal banking services to almost 17 million active customers in 12 countries
At the end of June 2024 OTP Group offered universal banking services to almost 17 million active customers in 12 countries, in many of them with dominant market position Major Group Members Total Assets1 Systemic position in Hungary Moldova Russia 2Q 2024 market share (%) OTP Bank Albania Romania Ru
Slide 4: OTP Group's total assets exceeded EUR 100 billion driven by acquisitions and organic growth
OTP Group's 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 72% in 1H 2024 Total assets development of OTP Group (in EUR billion) Flags rep
Slide 5: Close to 80% of the total net loan book is invested in EU countries
Close to 80% of the total net loan book is invested in EU countries, while Hungary’s share within the Group stood at 31% Breakdown of the consolidated net loan book Share of Hungary in the Group's net loan portfolio By country By product 47% 31% HUF 22,965 bn (EUR 58bn) HUF 22,965 bn (EUR 58bn) 100%
Slide 6: OTP Group's half-year profit after tax decreased by 12%
OTP Group’s half-year profit after tax decreased by 12% basically due to the HUF 179 billion positive one-off effect of the acquisitions completed in the first half of 2023; major KPIs reflect stable operation Consolidated profit after tax Key performance indicators of OTP Group (HUF billion) (%) -1
Slide 7: Profit contribution of foreign subsidiary banks continued to improve
In 1H 2024 the profit contribution of foreign subsidiary banks continued to improve Profit after tax1 (HUF billion) ROE1 Cost / income ratio 1H 2023 1H 2024 1H 2023 1H 2024 1H 2023 1H 2024 OTP Core (Hungary) 57 112 6% 8% 54% 50% DSK Group (Bulgaria) 88 98 24% 22% 35% 35% SKB + NKBM (Slovenia) 382 10
Slide 8: Consolidated performing loans grew by 5% ytd without Romania
Consolidated performing loans grew by 5% ytd without Romania, mainly as a result of strong performance in Bulgaria and Croatia. Corporate lending growth lagged behind retail across the Group YTD performing (Stage 1+2) LOAN volume changes, adjusted for FX effect Cons. Core2 DSK SKB+ OBH OBSrb Ipoteka
Slide 9: Deposits – Net loans gap
Consolidated deposits grew by 3% over the first six months. The deposit collection efforts in Serbia paid off with their deposit to net loan gap narrowing to negligible level against more than -HUF 430 billion in 2021 YTD DEPOSIT volume changes, adjusted for FX-effect Cons. Core2 DSK SKB+ OBH OBSrb
Slide 10: The Stage 3 ratio stayed flat q-o-q
The Stage 3 ratio stayed flat q-o-q. 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 at quality indicators the end of 2Q 2024 85.1% 84.5% 82.7% 83.1% 83.6% 1.9% 1.4% Stage 1 ratio 0
Slide 11: The Group's capital and liquidity position is strong
The Group’s capital and liquidity position is strong. The CET1 ratio improved in 1H due to strong underlying capital generating capability. The positive impact of the sale of OTP Bank Romania is not yet reflected in capital adequacy ratios Capital adequacy Regulatory Decomposition of the year-to-dat
Slide 12: 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 (2023) 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
Slide 13: Robust liquidity position and relatively benign redemption profile
Robust liquidity position: 73% net loan to deposit ratio, 237% LCR, 152% NSFR and relatively benign redemption profile; in July 2024 OTP excercised 2 calls with a total notional of EUR 900 million OTP Bank outstanding FX wholesale bonds OTP Bank FX MREL-eligible bond maturity profile2 (in EUR millio
Slide 14: Composition of main ratings by Moody's and S&P
OTP Bank ratings closely correlate with the sovereign ceilings Hungarian sovereign, OTP Bank and OTP Mortgage Bank ratings Composition of main ratings by Moody’s and S&P Moody’s S&P Macro Factors Macro Factors Weighted Macro Profile Moderate- Anchor bbb- Financial Profile Bank-Specific Factors Combi
Slide 15: Delivery of ESG obligations and goals on track
The delivery of ESG obligations and goals set by the Bank’s ESG strategy is on track according to schedule; EUR 700 million SP green bonds issued in June 2024 Green loan stock1 ESG RESULTS AND TARGETS (consolidated, HUF billion) 2Q 2024 Actual Long-term KPIs Plan Building the Corporate: HUF 575 bill
Slide 16: Appendix
Appendix @ otpbank
Slide 17: In 1H 2024 the profit after tax went up by 22% without one-off effects
In 1H 2024 the profit after tax went up by 22% without the one-off directs effects and on-going contribution of acquisitions Y-o-Y Q-o-Q Consolidated P&L (in HUF billion) 2023 1H 2023 1H 2024 1Q 2024 2Q 2024 FX-adj. w/o acq. FX-adj. Net interest income 1,462 651 878 25% 435 442 1% Net fees and commi
Slide 18: The consolidated ROE was close to 24% in 1H 2024
The consolidated ROE was close to 24% in 1H 2024 2003-2008 2009-2013 1H average average 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 ROE 29.4% 8.3% -7.4% 5.1% 15.4% 18.5% 18.7% 20.3% 10.9% 17.0% 11.0% 27.2% 23.6% ROE (adjusted) 29.0% 11.6% 8.5% 9.6% 15.4% 18.7% 19.1% 20.6% 13.0% 18.5% 18.8
Slide 19: 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. This is also the case for the Bulgarian housing loan segment Market penetration levels in Hungary in ... Net customer loan to deposit ratio in the 2Q 2024 data for other CEE/CIS Hungarian cr
Slide 20: In 2024 economic growth is expected to accelerate in most operating countries
In 2024 economic growth is expected to accelerate in most operating countries, disinflation continues Hungary Bulgaria Slovenia Croatia 2022 2023 2024F 2022 2023 2024F 2022 2023 2024F 2022 2023 2024F GDP growth (annual, %) 4.6 -0.9 2.0 3.9 1.8 2.2 2.5 1.6 2.4 7.0 3.1 3.5 Unemployment (%) 4.1 4.1 4.5
Slide 21: OTP Group's performance recognized by professional organizations
OTP Group’s outstanding performance has traditionally been recognized by professional organizations ’Best Bank in CEE 2024’ ’Best Bank in Hungary in 2024’ since 2012 in all consecutive ‘Bank of the Year Grand Prize’ years ‘Bank of the Year Main Prize’ ’Best Bank in Croatia in 2024’ ’Best Bank in Mon
Slide 22: Important information, disclaimers and contacts
Important information, disclaimers and contacts • 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 are strictly confidential to the recipient, have been furnished to you solely for yo
Slide 23: Investor Relations & Debt Capital Markets
Investor Relations & Debt Capital Markets Tel: + 36 1 473 5460; + 36 1 473 5457 E-mail: investor.relations@otpbank.hu; www.otpbank.hu
OTP Bank Nyrt. — Debt Investor Presentation (August 2024) on 6ix