Otp Bank Nyrt · BET:OTP
Otp Bank Nyrt — BofAML 24th Annual Financials Conference 2019
12 slides from Otp Bank Nyrt's conference presentation, Sep 24, 2019
Slide 1: OTP Group - Investor presentation
OTP Group - Investor presentation OTP Group has maintained strong profitability, capital adequacy and liquidity
Slide 2: OTP Group's Return on Equity stands out from its regional peers
OTP Group’s Return on Equity stands out from its regional peers. The adjusted ROE returned to attractive levels on the back of moderate provision charges, supported also by the stabilizing total revenue margin ROE of regional banks active in the CEE region 2007 … 2014 … 2017 2018 1H 19 Return on Equ
Slide 3: Net interest margin seems to have stabilized in the first half of 2019
After years of steady contraction, the net interest margin seems to have stabilized in the first half of 2019 Net interest margin (%) OTP Group NIM guidance for 2019: NIM started to flatten out Without the Expressbank and Albanian acquisitions in 2018, and the margin without acquisitions may 5.96% n
Slide 4: Net interest margin development at the largest Group members
The net interest margin of the Russian operation has been gradually decreasing; however, the margin trajectory of other large subsidiaries typically showed signs of stabilization Net interest margin development at the largest Group members (%) 1 1 OTP OTP Core: in the second quarter the margin decli
Slide 5: Loan quality deterioration remained moderate on consolidated level and main subsidiaries
Loan quality deterioration remained moderate in the past few years both on consolidated level and the main subsidiaries Ratio of DPD90+ loan formation to average performing (DPD0-90) loans1 (1H 2019 numbers are annualised) OTP Core (Hungary) DSK Group (Bulgaria) Consolidated 1.5% 2.7% 1.7% 0.4% 0.7%
Slide 6: OTP has the highest own coverage ratio in all three stages of impairment under IFRS 9
Compared to regional peers, OTP has the highest own coverage ratio in all three stages of impairment under IFRS 9 Gross customer loans’ split by the 3 stages of impairment under IFRS 9 definition Stage 1 Stage 2 Stage 3 2Q 2019 incl. POCI 86.7% 5.6% 1Q 18: 12.2% 7.7% -4.0%p 2Q 2019 incl. POCI 85.6%
Slide 7: OTP Group demonstrated double digit loan growth over the past 12 months
OTP Group demonstrated double digit loan growth over the past 12 months, thanks to the healthy loan demand amid supportive economic environment and low penetration levels Net loan growth of regional banks active in the CEE region ORGANIC Stage 1 + 2 loan growth at OTP2 (y-o-y, FX-adjusted) Total Con
Slide 8: OTP Group performing loan growth
In the last 3 years, by the end of 2019 OTP Group might have doubled its performing loan volumes, as a result of strong organic growth and acquisitions OTP Group – performing (DPD0-90) loan growth FX-adjusted, in HUF billion 2016 5,734 Organic 617 +25% Components of OTP Group’s expected performing l
Slide 9: Acquisitions in the last 2.5 years materially improved OTP's positions
Acquisitions in the last 2.5 years materially improved OTP’s positions in many countries. The pro forma CET1 ratio impact of the Serbian, Moldovan, Montenegrin and Slovenian transactions is -2.8 pps Target Net loan volumes Market share in total assets Book value (seller, date of closing) (in HUF bil
Slide 10: CET1=Tier1 ratio drawn down by 2.8 pps due to not yet closed acquisitions
The 15.9% CET1=Tier1 ratio would be drawn down by 2.8 pps due to the not yet closed acquisitions (on a pro forma basis). Due to the sound internal capital build the CET1 ratio is expected to get closer to the 15% mid-term management target Development of the CET1 / CAR ratios Tier 2 CET1=Tier1 ratio
Slide 11: In 2019 Hungarian GDP growth is expected to be close to 5% again
In 2019 the Hungarian GDP growth is expected to be close to 5% again. The healthy balance indicators coupled with ample room to manoeuvre both on the fiscal and monetary policy front suggest that the country might mitigate the potential impact from the slowing German economy, and sustain its healthy
Slide 12: 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", "expec
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