Otp Bank Nyrt · BET:OTP
Otp Bank Nyrt — Q1 2025 Earnings Presentation
53 slides from Otp Bank Nyrt's earnings presentation, 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 1Q 2025 results
Slide 2: Péter Csányi was appointed as new CEO of OTP Bank
Péter Csányi was appointed as new CEO of OTP Bank Career at OTP Deputy CEO, member of the Board of Directors and Head of the Digital Division since 2021, and Chairman of the Supervisory Board of OTP banka d.d. (Croatia) since 2020. Joined OTP in 2016 and held various managing positions such as Head
Slide 3: Chairman and CEO roles are now separated
Chairman and CEO roles are now separated, with the Chairman remaining in full-time executive position Responsibilities and roles of the Chairman and CEO Chairman (Dr. Sándor Csányi) CEO (Péter Csányi) Remains employed in full-time executive position Responsible for managing the operative, day-to-day
Slide 4: The long-term strategy remains the same with four focus areas
The long-term strategy remains the same with four focus areas to further improve The long-term strategy is unchanged GROWTH PROFITABILITY STABILITY Focus areas to further improve Enhancing client experience, including beyond banking Client experience products and services Improving cost efficiency t
Slide 5: New management members have been appointed in key fields
New management members have been appointed in key fields András Sebők Péter Juhász András Hámori Head of Head of Marketing CEO candidate1 of Digital Division and Communication OTP Bank Slovenia Strong international experience Most awarded marketing Seasoned retail banking supporting clients across e
Slide 6: 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; 4.1-fold loan growth and 14 acquisitions in 10 years. 43% of net loans in Eurozone + ERM II countries, 75% within the EU Outstanding profitability: After 23.5% ROE in 2024, in
Slide 7: 1Q 2025 profit influenced by lump-sum recognition of special taxes
In 1Q 2025 OTP Group’s profit after tax was heavily influenced by the lump-sum recognition of the full annual amount of Hungarian special taxes and supervisory charges. Margin remained stable, cost efficiency improved q-o-q Consolidated profit after tax Key performance indicators of OTP Group (HUF b
Slide 8: Special items booked in one sum in 1Q reached HUF 135 billion
Special items booked in one sum in 1Q for the whole year reached HUF 135 billion. Had these items been booked evenly throughout the year, the 1Q profit would have been HUF 110 billion higher with the ROE even exceeding last year’s level Return on equity (%) Reported 1Q 2025 189 profit after tax 23.5
Slide 9: OTP Core suffered losses in 1Q 2025 due to special taxes
OTP Core suffered losses in 1Q 2025 as the full annual amount of special taxes are booked in a lump sum at the OTP CORE beginning of each year. Special taxes are set to grow in 2025 OTP Core profit after tax Key performance indicators of OTP Core (without dividends received from subsidiaries, HUF bi
Slide 10: Mortgage contractual amounts increased and cash loan sales soared
In 1Q 2025 mortgage loan contractual amounts kept on increasing and cash loan sales soared by 43%. OTP is OTP CORE an active participant in the workers’ loan program. Our market share in household deposits improved further Y-o-y change in mortgage loan contractual amounts in 1Q 2025 Y-o-y change in
Slide 11: Corporate and MSE loan demand started to pick up
The demand for corporate and MSE loans started to pick up. OTP’s corporate credit market share q-o-q OTP CORE increased Performing corporate loan volume changes (%) OTP Group’s market share in loans to Hungarian (DPD0-90 loan changes until 2018, Stage 1+2 from 2019, FX-adjusted) companies2 (%) 20.0
Slide 12: Foreign subsidiaries continued to deliver strong results
In 1Q 2025 foreign subsidiaries continued to deliver strong results Profit after tax1 (HUF billion) ROE1 Cost / income ratio 1Q 2024 1Q 2025 1Q 2024 2024 1Q 2025 1Q 2024 2024 1Q 2025 DSK Group 39% 43 49 19% 22% 19% 41% 32% (Bulgaria) OTP Bank Slovenia 26 28 15% 16% 14% 45% 42% 47% OTP Bank Croatia 1
Slide 13: Consolidated net interest margin remained stable
The consolidated net interest margin remained stable both in q-o-q and y-o-y comparison. Sensitivity to EUR rate cuts has moderated significantly in the last several quarters Drivers behind the q-o-q change of the consolidated net interest margin Sensitivity to rate changes 4.27% -2 bps 4 bps 4.27%
Slide 14: Consolidated performing loans increased by 3% q-o-q
Consolidated performing loans increased by 3% q-o-q (FX-adjusted), demonstrating a balanced composition among retail and corporate. Ipoteka was still lagging behind in the Uzbek consumer lending market Q-o-Q performing (Stage 1+2) LOAN volume changes, adjusted for FX effect Cons. Core2 DSK OBS OBH O
Slide 15: Consolidated deposits grew by 3% q-o-q
Consolidated deposits grew by 3% q-o-q. The increasing trend of Hungarian household deposits continued, their stock grew by 6%. Outflows in Uzbekistan were driven partly by seasonality and a withdrawal by a large corporate client Q-o-Q DEPOSIT volume changes, adjusted for FX-effect Cons. Core DSK OB
Slide 16: Stage 3 ratio decreased to 3.5%
The Stage 3 ratio decreased to 3.5%. 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 1Q 2025 80.4% 81.5% 83.4% 82.7% 83.3% 83.8% 1.9% 1.4% Stage 1 0
Slide 17: CET1 ratio decreased to 18% due to Basel IV impact
In 1Q 2025 the Group’s CET1 ratio decreased to 18% mainly due to the -86 bps Basel IV impact Capital adequacy Regulatory Decomposition of the ytd change in the CET1 ratio and MREL ratios (%)1 requirements 2 (based on the prudential scope of consolidation, % / changes in percentage points) MREL ratio
Slide 18: Capital ratios to be drawn down by additional 84 bps in 2025
In 2025 the Group’s capital ratios will be drawn down by an additional 84 bps due to the elimination of transitional adjustments and the recently announced share buyback Loaded CET1 = Tier 1 ratio of OTP Group Peer comparison of capital adequacy and leverage ratios (1Q 2025, %) (1Q 2025, %) CET1 rat
Slide 19: Robust liquidity position and redemption profile
Robust liquidity position: 73% net loan to deposit ratio, 238% LCR, 151% NSFR and comfortable redemption profile OTP Bank outstanding and recently redeemed FX wholesale bonds OTP Bank FX MREL-eligible bond maturity profile2 1Q 2025 (in EUR million) Issued Amt. / 1,150 Issue Maturity Actual Issuance
Slide 20: Issuer credit ratings exceed Hungarian sovereign ratings
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 Macro Factors Macro Factors Weighted Macro Profile Moderate- Anch
Slide 21: ESG development according to strategic goals
ESG development according to strategic goals Green loan stock1 ESG RESULTS AND TARGETS (consolidated, HUF billion) 1Q 2025 Actual Long-term KPIs Plan Building the Corporate: HUF 862 billion Green loans of HUF 1,500 1,500 green loan billion in total by 2025 for the Retail: HUF 203 billion Group portf
Slide 22: Operating environment expected to improve somewhat in 2025
In 2025 the operating environment is expected to improve somewhat Hungary Bulgaria Slovenia Croatia 2022 2023 2024 2025F 2022 2023 2024 2025F 2022 2023 2024 2025F 2022 2023 2024 2025F GDP growth (annual, %) 4.3 -0.9 0.5 0.81 4.0 1.9 2.8 2.9 2.7 2.1 1.6 1.5 7.3 3.3 3.8 3.3 Unemployment (%) 3.7 4.1 4.
Slide 23: Management reaffirms its 2025 guidance
Management reaffirms its guidance for the Group’s 2025 performance In 2025 the management expects marginal improvement in the operating environment. 2024 1Q 2025 1Q 2025 Therefore: audited reported adjusted FX-adjusted organic performing loan volume growth may be above 9% reported in 2024. 9% 3% 3%
Slide 24: Considerations concerning capital allocation
Considerations concerning capital allocation The Bank may continue to buy back treasury shares. A buyback programme amounting to HUF 60 billion announced on 24 January 2025 was completed on 10 February. Furthermore, on 24 April 2025 NBH approved the repurchase of HUF 150 billion equivalent own share
Slide 25: Further details and financials
Further details and financials 25
Slide 26: OTP Group provides universal banking services in 11 countries
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 1Q 2025 market share (%) Russia Russia Montenegro 7% Total ass
Slide 27: 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 Market capitalization: EUR 16.9 billion1 Total number of ordinary shares: 280,000,010, each having a nominal value of HUF 100 and repres
Slide 28: 75% of net loan book invested in EU countries
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, 1Q 2025 By country By product Hungary1 HUF 7,588 bn Bulgaria HUF 4,721 bn Slovenia HUF 2,873 bn Leasing Leasing Leasing Corporate 8% Mortgage 8% 8
Slide 29: 36% of the deposit book is held in Hungary
36% of the consolidated deposit book is held in Hungary, while Bulgaria and Slovenia together hold another third. Household volumes account for 56% of the total deposit base Breakdown of the consolidated deposit base Deposit base, 1Q 2025 By country By product Hungary1 HUF 11,596 bn Bulgaria HUF 6,1
Slide 30: Net loan book grew 4.1-fold over 10 years
OTP Group’s net loan book grew 4.1-fold over the last 10 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 – 2024 Acquisitions Organic growth OTP Group 15%
Slide 31: Total assets reached EUR 110 billion
Total assets reached EUR 110 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 32: 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 23,825 bn HUF 23,825 bn 100% 100% 28% Mortgage 2014 1
Slide 33: Margin recovery, cost efficiency and stable portfolio quality
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 1Q 25 ROE 29.4% 8.3% -7.4% 5.1%
Slide 34: 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 1Q 2025 ROE (%) ROE / COE P/B 7 May 2025 OTP 14.9 23.71 1.2 1.81 1.4 UniCredit 22.0 1.7 1.4 1Q 2025 Intesa 20.0 1.6 1.4 Erste 14.2 1.1 1.2 KBC 9.0 0.8 1.4 Raiffeisen 15.0 0.7 0.4 2024 annual averages OTP 23.5 1.8 1.
Slide 35: 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 somewhat higher NIM (%) Cost / income (%) Credit risk cost rate (%) Leverage ratio (%) 4.27 38.51 40.8 0.40 10.3 2.00 35.4 0.08 5.9 1Q 2025 N
Slide 36: Valuation multiples have not yet recovered to pre-war levels
Valuation multiples have not yet recovered to pre-war levels OTP Bank's P/E ratio OTP Bank's P/B ratio ! ! ! ! Updated on 7 May 2025. Source: Bloomberg. 36
Slide 37: OTP Bank named top performing among 50 largest European banks
In 2024 OTP Bank was named the top performing among the 50 largest publicly listed European banks by S&P Global Market Intelligence Performance ranking of the 50 largest publicly listed European banks Data for the 12 months ended Dec. 31, 2023, unless otherwise stated 37
Slide 38: Capital strength demonstrated by 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 39: Hungarian loan penetration levels are still low
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 4Q 2024 data for other CEE/CIS Hungarian credit institution system countries (in % of GDP) 118% 78% 1Q 20
Slide 40: Operating profit increased by 20% y-o-y organically
Operating profit increased by 20% y-o-y organically and FX-adjusted Q-o-Q Y-o-Y Consolidated P&L (in HUF billion) 2024 1Q 2024 4Q 2024 1Q 2025 FX-adj. FX-adj. w/o OBR Net interest income 1.783 435 461 465 0% 8% Net fees and commissions 546 121 148 139 -7% 14% Other net non-interest income 306 41 97
Slide 41: Net interest income advanced by 8% y-o-y
Sale of Net interest income advanced by 8% y-o-y organically and FX-adjusted Romania NET INTEREST 1Q 2024 4Q 2024 1Q 2025 1Q 2025 Y-o-Y 1Q 2025 Q-o-Q INCOME (HUF billion) (HUF billion) (HUF billion) (HUF billion) (HUF billion) 1 The 11% y-o-y growth at OTP Group 465 435 461 465 441 30 7%/8%1 5 1%/0%
Slide 42: Consolidated net interest margin remained stable
Consolidated net interest margin remained stable NET INTEREST 1 1Q 2024 4Q 2024 1Q 2025 At OTP Core the margin remained MARGIN stable q-o-q, as the positive impact of increasing retail deposits was offset, OTP Group 4.30% 4.27% among others, by the additional 4.27% interest expenditure incurred in t
Slide 43: Net fee income went up by 14% y-o-y
Net fee income went up by 14% y-o-y organically and FX-adjusted, while the quarterly drop was induced Sale of mainly by one-offs in Hungary and seasonality Romania NET FEE 1Q 2024 4Q 2024 1Q 2025 1Q 2025 Y-o-Y 1Q 2025 Q-o-Q 1 At OTP Core the 10% y-o-y increase INCOME (HUF billion) (HUF billion) (HUF
Slide 44: Other income moderated q-o-q
Sale of Other income moderated q-o-q on the back of lower fair value adjustment of subsidized retail loans in Hungary Romania 1Q 2024 4Q 2024 1Q 2025 1Q 2025 Y-o-Y 1Q 2025 Q-o-Q OTHER INCOME (HUF billion) (HUF billion) (HUF billion) (HUF billion) (HUF billion) OTP Group 41 97 85 461 44 107%/108%1 -1
Slide 45: Operating costs increased by 10% y-o-y
Operating costs increased by 10% y-o-y organically and FX-adjusted 9M 2023 1Q 2025 Y-o-Y Y-o-Y, FX-adjusted OPERATING COSTS (HUF (HUF billion) billion) (HUF billion) (HUF billion) 1 At OTP Core operating expenses increased by 13% as a joint result of strong OTP Group 282 321 18 7%/13%1 261 12 4%/10%
Slide 46: Credit risk cost rate of 40 bps in 1Q 2025
In 1Q 2025 the credit risk cost rate of 40 bps was slightly above the 38 bps posted in 2024. In 1Q further impairments were created for the Russian government bonds, as a result of which their coverage ratio increased to 74% 2024 2024 1Q 2024 4Q 2024 1Q 2025 1Q 2025 TOTAL RISK COST credit risk credi
Slide 47: Performing loans grew by 11% y-o-y
Consolidated performing loans grew by 11% y-o-y organically and FX-adjusted, driven by retail loans, but corporate loan volume growth also gained momentum. Ukrainian credit volumes expanded by 25% Y-o-Y performing (Stage 1+2) LOAN volume changes, adjusted for FX effect Cons. Core2 DSK OBS OBH OBSrb
Slide 48: Deposits increased by 9% y-o-y
Consolidated deposits increased by 9% y-o-y organically and FX-adjusted. Hungarian household deposits grew by 12%. Uzbek deposits expanded by 43% y-o-y Y-o-Y DEPOSIT volume changes, adjusted for FX-effect Cons. Core DSK OBS OBH OBSrb Ipoteka OBU CKB OBA OBM OBRu (Hungary) (Bulgaria) (Slovenia) (Croa
Slide 49: 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 50: Development of own provision coverage ratios
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 51: 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) 1 before / after (%) (EUR million) 2016 2015
Slide 52: OTP Group's performance recognized by professional organizations
OTP Group’s outstanding performance has traditionally been recognized by professional organizations 52
Slide 53: 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