Otp Bank Nyrt · BET:OTP
Otp Bank Nyrt — Debt Investor Presentation (March 2023)
22 slides from Otp Bank Nyrt's debt investor presentation, Mar 29, 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 Fixed Income presentation Based on 4Q 2022 results 29 March 2023
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: Strong CEE franchise together with the improving Russian contribution offsets Ukraine losses
Strong CEE franchise together with the improving Russian contribution comfortably offsets temporary losses in Ukraine 2021 / 20221 PROFITABILITY CAPITAL STRENGTH FUNDING & LIQUIDITY SIZE ASSET QUALITY Profit after tax CET1 ratio2 Net LTD Total assets Stage 3 ratio €1.27bn/€0.89bn 17.5% / 16.1% 75% /
Slide 4: OTP Group offers universal banking services to around 15.6 million active customers
OTP Group offers universal banking services to around 15.6 million active customers. It is present in 11 countries, in most of them with a dominant market position. Majority of the Group’s operations is in European Union member states Major Group Members in Europe Total Assets1 Ownership structure o
Slide 5: Adjusted profit contribution of Hungarian and foreign operations improved in 2022
During 2022 the adjusted profit contribution of both the Hungarian and foreign operation in the Central and Eastern European countries improved significantly, latter by 46%. Russia delivered stable results, but Ukraine turned into negative (milliárd forintban) Development of adjusted profit of Hunga
Slide 6: Increase in adjusted profit after tax shaped by dynamic growth in core banking revenues
The increase in the Group’s annual adjusted profit after tax was mainly shaped by the dynamic growth in core banking revenues, partly offset by the operating cost pressure and more than doubling total risk cost OTP Group (consolidated) P&L (in HUF billion) 2021 2022 3Q 2022 4Q 2022 4Q Q-o-Q FY Y-o-Y
Slide 7: Consolidated adjusted ROE reached 18.8% in 2022
The consolidated adjusted ROE reached 18.8% in 2022, whereas this number was 20.7% without Russia and Ukraine 2003-2008 2009-2013 average 2014 2015 2016 2017 2018 2019 2020 2021 2022 average ROE 11.0% 29.4% 8.3% -7.4% 5.1% 15.4% 18.5% 18.7% 20.3% 10.9% 17.0% (from profit after tax) 11.7%4 ROE 18.8%
Slide 8: Robust liquidity position with 74% net loan to deposit ratio
Robust liquidity position with 74% net loan to deposit ratio; 172% LCR, 131% NSFR and light maturity profile with marginal refinancing needs OTP Bank outstanding FX wholesale debt OTP Bank FX wholesale debt maturity profile External obligation of ISIN Instrument Maturity Call Actual Coupon OTP Group
Slide 9: 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 / Scope Moody's Moody's S&P Scope A1 12 12 A+ Moody’s S&P A2 11 11 A Moody's Hungary rating Baa2 Scope Hungary rating
Slide 10: Strong capital position, ratios well above regulatory requirements
Strong capital position, all capital adequacy ratios are well above the regulatory requirements Change of CET1 ratio between 2018 – 2022 Regulatory minimum capital requirements for OTP Group in 4Q 2022 17.5% 13.2% 16.5% -0,6% 16.1% Combined 10.7% 15.4% 3.2% 2.5% CCB 14.4% -0,3% Buffer Req. 8.8% 2.0%
Slide 11: Stage 3 ratio decreased throughout 2022
The Stage 3 ratio decreased throughout 2022. Asset quality remained solid and even improved, despite the various headwinds. The management's provisioning policy remained conservative compared to regional banking groups Development of the Group's main credit quality Own coverage of Stage 1+2 loans co
Slide 12: 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, with several new initiatives already in the field of green finance KPI’s TO MEASURE STRATEGIC ESG GOALS ESG RISK MANAGEMENT 2022 Actual Credit risk The Group level ESG Credit Risk Management
Slide 13: OTP's performance recognized by professional organizations
OTP’s outstanding performance is traditionally recognized not only by capital markets, but professional organizations, too ’Best Bank in CEE 2022’ ’Best Bank in Hungary in 2022’ since 2012 in all consecutive years ‘Bank of the Year in 2022’ ’Best Bank in Montenegro in 2022’ ’Best Bank in Slovenia in
Slide 14: Further information on OTP Group
Further information on OTP Group
Slide 15: Almost 80% of net loan book is invested in EU countries
Almost 80% of the total net loan book is invested in EU countries, with Hungary still representing the highest share within the Group Breakdown of the consolidated net loan book Net loan book, 2022 Hungary1 HUF 6,798 bn Bulgaria HUF 3,430 bn By country By product Leasing Leasing 6% 8% Mortgage Mortg
Slide 16: Hungary represents almost half of the deposit book
Hungary represents almost half of the deposit book, Bulgaria is the second largest deposit holder in the Group. Household volumes account for 55% of the total deposit base Breakdown of the consolidated deposit base Deposit base, 2022 Hungary1 HUF 11,217 bn Bulgaria HUF 4,893 bn By country By product
Slide 17: Consolidated performing loans without Russia and Ukraine expanded by 15%
The consolidated performing loans without Russia and Ukraine expanded by 15% over the last twelve months. Hungary posted another strong year with 15% expansion, driven by corporate. Volumes contracted in Russia, Ukraine and Moldova Y-o-Y performing (Stage 1 + 2) LOAN volume changes, adjusted for FX-
Slide 18: Deposits – consolidated deposits grew by 14%
Consolidated deposits grew by 14% over the last 12 months. Within the 9% expansion in Hungary, corporate deposit growth was particularly strong. Both Russia and Ukraine enjoyed inflows Y-o-Y DEPOSIT volume changes, adjusted for FX-effect Cons. Core DSK OBH OBSrb SKB OBR OBU OBRu CKB OBA OBM (Hungary
Slide 19: Hungarian loan penetration levels 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 loan to deposit ratio in the Market penetration levels in Hungary in ... 2022 data for other CEE/
Slide 20: Group structure changed profoundly due to acquisitions
Due to the acquisitions the Group structure changed profoundly. Eurozone and ERM 2 countries became dominant within the consolidated net loans (on a pro forma basis), while the weight of Hungary, Russia and Ukraine eroded significantly Target Net loans Market share Book value Share of Hungary in the
Slide 21: Footnotes and Glossary
Footnotes and Glossary Slide 3 Profit after tax and Total assets calculated with 358.52 / 391.33 (2021 / 2022) HUF/EUR average exchange rate and 369.00 / 400.25 (2021 / 2022) HUF/EUR closing exchange rate CET1 ratio: Common Equity Tier1 ratio under accounting scope of consolidation, including the un
Slide 22: Investor Relations & Debt Capital Markets
Investor Relations & Debt Capital Markets Tel: + 36 1 473 5460; + 36 1 473 5457 Fax: + 36 1 473 5951 E-mail: investor.relations@otpbank.hu www.otpbank.hu 22
OTP Bank Nyrt. — Debt Investor Presentation (March 2023) on 6ix