Otp Bank Nyrt · BET:OTP
Otp Bank Nyrt — Debt Investor Presentation (2023)
23 slides from Otp Bank Nyrt's debt investor presentation, Sep 20, 2023
Slide 1: OTP Group – Strong results and capital provide resilience in turbulent times
OTP Group – Strong results and capital provide resilience in turbulent times Based on 2Q 2023 results
Slide 2: Important Information
Important Information • 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 recipient, have been furnished to you solely for your information and may not
Slide 3: OTP Group - Highlights
OTP Group - Highlights Dominant position in CEE countries: No. 1 in 5 countries (based on net loans); 3.5-fold loan growth over the last 6 years, 11 acquisitions; >40% of net loans in Eurozone / ERM 2, ~80% within the EU Strong profitability: 35% ROE, 28% adjusted ROE (without one-offs) in 1H 2023 S
Slide 4: OTP Group offers universal banking services to around 17.3 million active customers
OTP Group offers universal banking services to around 17.3 million active customers. OTP is present in 12 countries, in most of them with a dominant market position Major Group Members Total Assets Ownership structure of OTP Bank Ukraine Romania OTP Bank Russia Moldova Other Foreign Institutional Ru
Slide 5: 79% of the total net loan book is originated in EU countries
79% of the total net loan book is originated in EU countries, Hungary’s share within the Group decreased to 33% Breakdown of the consolidated net loan book Net loan book, 2Q 23 Hungary1 HUF 6,776 bn Bulgaria HUF 3,595 bn Slovenia HUF 2,761 bn By country By product Leasing Leasing Leasing 6% Mortgage
Slide 6: 38% of the consolidated deposit book is held in Hungary
38% 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, 2Q 23 Hungary1 HUF 10,320 bn Bulgaria HUF 4,695 bn Slovenia HUF 4,393
Slide 7: In 1H 2023 OTP Group posted HUF 577 billion profit after tax
In 1H 2023 OTP Group posted HUF 577 billion profit after tax, partially supported by the badwill of two acquisitions closed in the first half-year, as well as the improvement of adjusted profit Consolidated profit after tax Key performance indicators of OTP Group (HUF billion) (%) x13 Return on equi
Slide 8: Increase in semi-annual adjusted profit after tax driven by income growth and low risk cost
The increase in the Group’s semi-annual adjusted profit after tax was mainly shaped by dynamic income growth and close to zero total risk cost, partly offset by the operating cost pressure OTP Group (consolidated) P&L (in HUF billion) 1H 2022 1H 2023 1H Y-o-Y 1Q 2023 2Q 2023 2Q Q-o-Q FX-adj. w/o acq
Slide 9: Foreign subsidiary banks in the CEE region substantially increased their profit after tax
In 1H 2023 foreign subsidiary banks in the CEE region substantially increased their profit after tax, their ROE indicators were typically between 15-25%. The Russian and Ukrainian subsidiaries continued their profitable operation in 2Q as well Profit after tax1 (HUF billion) ROE Cost / income ratio
Slide 10: Total assets approached EUR 100 billion; foreign profit contribution almost 70%
Due to the acquisitions completed in recent years and the dynamic organic growth, consolidated total assets approached EUR 100 billion, while profit contribution of foreign operations gradually increased, hitting almost 70% in 1H 2023 Total assets development of OTP Group (in EUR billion) Flags repr
Slide 11: Consolidated performing loans grew by 18% in the first half
Consolidated performing loans grew by 18% in the first half of the year, within that the organic growth (excluding the Nova KBM and Ipoteka Bank acquisitions) reached 3% YTD performing (Stage 1+2) LOAN volume changes, adjusted for FX-effect Cons. Core2 DSK SKB+ OBH OBSrb OBA CKB OBRu OBU OBR OBM (Hu
Slide 12: Consolidated customer deposits decreased by 1% in the first six months
Consolidated customer deposits decreased by 1% in the first six month without the effect of acquisitions YTD DEPOSIT volume changes, adjusted for FX-effect Cons. Core3 DSK SKB+ OBH OBSrb OBA CKB OBRu OBU OBR OBM (Hungary) (Bulgaria) NKBM (Croatia) (Serbia) (Albania) (Monten.) (Russia) (Ukraine) (Rom
Slide 13: 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 14: The Group's capital position is stable
The Group’s capital position is stable. Capital adequacy ratios are well above the regulatory requirements and improved q-o-q despite the consolidation of Ipoteka Bank, thanks to the inclusion of eligible 2Q profit CAR and CET1 ratios (%)1 Regulatory minimum capital requirements for OTP Group in 4Q
Slide 15: Robust liquidity position with 76% net loan to deposit ratio
Robust liquidity position with 76% net loan to deposit ratio, 204% LCR, 145% NSFR and moderate maturity profile with marginal refinancing needs OTP Bank outstanding FX wholesale debt OTP Bank FX wholesale debt maturity profile External (in EUR million) Maturity Actual ISIN Instrument Issue date Call
Slide 16: OTP Bank ratings closely correlate with the sovereign ceilings
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 17: Stage 3 ratio continued to follow a declining trend
Stage 3 ratio continued to follow a declining trend. Provisioning policy remained conservative compared to regional banking groups Development of the Group's main credit quality Own coverage of Stage 1+2 loans compared to regional peers at indicators the end of 2Q 2023 83.0% 83.4% 83.4% 84.9% 85.1%
Slide 18: Russian consumer loans expanded by 16% y-o-y; Ukraine provisioning improved
Russian consumer loans expanded by 16% y-o-y, while corporate lending dropped by 64%. In Ukraine the provisioning level improved further. In both countries there is a substantial free capital above the regulatory minimum requirement OTP Russia OTP Ukraine Volume changes Gross intragroup financing Vo
Slide 19: The consolidated adjusted ROE exceeded 28% in 1H 2023
The consolidated adjusted ROE exceeded 28% in 1H 2023 2003-2008 2009-2013 average average 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H 2023 ROE 29.4% 8.3% -7.4% 5.1% 15.4% 18.5% 18.7% 20.3% 10.9% 17.0% 11.0% 34.7% ROE (adjusted) 29.0% 11.6% 8.5% 9.6% 15.4% 18.7% 19.1% 20.6% 13.0% 18.5% 18.8% 28.4
Slide 20: Hungarian loan penetration levels are still low in regional comparison
The Hungarian loan penetration levels are still low in regional comparison implying good volume growth potential. This is also the case for Romania, as well as for the Bulgarian housing loan segment Net customer loan to deposit ratio in Market penetration levels in Hungary in ... 1Q 2023 data for ot
Slide 21: Delivery of ESG obligations and goals on track
The delivery of ESG obligations and goals set by the Bank’s ESG strategy are on track according to schedule. At the beginning of July OTP’s ESG risk rating by Sustainalytics improved further ESG RESULTS AND TARGETS ESG RATINGS 2Q 2023 Actual Long-term KPIs OTP Bank’s improving sustainability perform
Slide 22: OTP Group's performance recognized by professional organizations
OTP Group’s outstanding performance has traditionally been recognized by professional organizations, too ’Best Bank in CEE 2023’ ’Best Bank in Hungary in 2023’ since 2012 in all consecutive years ‘Bank of the Year in 2022’ ’Best Bank in Croatia in 2023’ ’Best Bank in Montenegro in 2023’ ’Best Bank i
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 23