Otp Bank Nyrt · BET:OTP
Otp Bank Nyrt — Q2 2025 Earnings Presentation
48 slides from Otp Bank Nyrt's earnings presentation, August 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 2Q 2025 results
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
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%
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, market shares at OTP Core
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: Corporate and micro/small enterprise loan trends
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: 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: Consolidated net interest margin improved
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: Performing loan portfolio grew by 7% in first half
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 Bank 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: 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: 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: 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: Group 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: Capital ratios drawn down by additional 23 bps
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: OTP Bank 13th place on 2025 EBA stress test
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: OTP second best performing among 50 largest European banks
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 and redemption profile
Robust liquidity position: 75% net loan to deposit ratio, 230% LCR, 152% NSFR 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 I
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 2025 guidance
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: Further details and financials
Further details and financials 22
Slide 23: Universal banking services to more than 7 million active 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 2Q 2025 market share (%) Russia Russia Montenegro 7% Total ass
Slide 24: Unique investment opportunity to access the CEE banking sector
OTP Bank offers a unique investment opportunity to access the CEE banking sector. The Bank is a well-diversified and transparent player without strategic investors Ownership structure of OTP Bank on 30 June 2025 Total number of ordinary shares: 280,000,010, each having a nominal value of HUF 100 and
Slide 25: Highest market capitalization ever
Outstanding and sustainable performance has supported the highest market capitalization ever, although valuation multiples have not yet fully recovered to pre-war levels Market capitalization: EUR 22.0 billion1 P/B and P/E ratios EUR billion P/E P/B 25 15.0 2.25 22.0 2.00 20 12.5 1.75 1.60 1.50 15 1
Slide 26: Net loan book grew 4.2-fold over the last 11 years
OTP Group’s net loan book grew 4.2-fold over the last 11 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 – 1H 2025 Acquisitions Organic growth OTP Group
Slide 27: Total assets reached EUR 111 billion
Total assets reached EUR 111 billion driven by successful acquisitions and dynamic organic growth. Profit contribution of foreign subsidiaries showed a trend-like increase over the last several years Total assets development of OTP Group (in EUR billion) Dominant position in CEE1 Flags represent cou
Slide 28: 14 acquisitions completed in the last 10 years
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) before / after1 (%) (EUR million) 2016 2015
Slide 29: 75% of net loan book invested in EU countries
75% of the total net loan book is invested in EU countries, while the share of Russia and Ukraine declined to 7% 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 24,474 bn HUF 24,474 bn 100% 100% 28% 2014 2Q 2025 Hu
Slide 30: Net loan book by country and product
75% 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, 2Q 2025 By country By product Hungary1 HUF 7,731 bn Bulgaria HUF 4,811 bn Slovenia HUF 2,924 bn Leasing Leasing Leasing Corporate 8% Mortgage 8% 8
Slide 31: 35% of deposit book held in Hungary
35% 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 2025 By country By product Hungary1 HUF 11,543 bn Bulgaria HUF 6,2
Slide 32: Margin recovery and improved cost efficiency since 2003
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 1H 25 ROE 29.4% 8.3% -7.4% 5.1%
Slide 33: OTP outperformed regional peers in ROE and ROE/COE
In ROE and ROE/COE terms, OTP Group outperformed its regional peers both in 2024 and 1H 2025 ROE (%) ROE / COE P/B 5 August 2025 OTP 20.3 23.21 1.6 1.81 1.5 UniCredit 23.1 1.8 1.6 1H 2025 Intesa 20.0 1.6 1.6 Erste 15.3 1.2 1.5 KBC 13.0 15.01 1.2 1.41 1.6 Raiffeisen 8.0 0.4 0.4 2024 annual averages O
Slide 34: Comparison with regional competitors
Compared to its regional competitors, OTP Group has higher margins, better or in-line cost efficiency and lower leverage, with its credit risk cost rate being higher NIM (%) Cost / income (%) Credit risk cost rate (%) Leverage ratio (%) 4.29 38.81 39.5 0.66 10.3 N/A 36.6 0.09 5.7 1H 2025 N/A 38.0 0.
Slide 35: Hungarian loan penetration 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 1Q 2025 data for other CEE/CIS Hungarian credit institution system countries (in % of GDP) 118% 78% 1Q 20
Slide 36: Semi-annual operating profit increased by 20%
Semi-annual 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
Slide 37: Net interest income advanced by 9%
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 38: 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 39: Other income q-o-q increase
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 40: Half-year operating costs increased by 10%
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 billion) (HUF billion) (HUF billion) (HUF billion) grew by 10%: other administrative costs were stable y-o-y, which mitigate
Slide 41: Performing loan portfolio increased 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 42: 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 43: Development of Stage 1, 2 and 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) 2022 83.4% 83.6% 88.6% 88.2% 83.3% 86.6% - 41.4% 87.0% 8
Slide 44: Own provision coverage ratios by Stage
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) 2022 1.0% 0.8% 1.1% 0.2% 0.5% 0.
Slide 45: Issuer credit ratings exceed Hungarian sovereign by one notch
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 Moody's S&P / Scope Moody's Moody's S&P Scope Macro Factors Macro
Slide 46: ESG results and targets
ESG development according to strategic goals Green loan stock1 ESG RESULTS AND TARGETS (consolidated, HUF billion) 2Q 2025 Actual Long-term KPIs Plan Building the Corporate: HUF 844 billion 1,500 Green loans of HUF 1,500 billion green loan in total by 2025 for the Group portfolio1 Retail: HUF 396 bi
Slide 47: Outstanding performance recognized by professional organizations
OTP Group’s outstanding performance has traditionally been recognized by professional organizations 47
Slide 48: 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