OTP Bank Surpasses Expectations with Historic Q2 Profit

OTP Bank achieved a historic high in the second quarter of 2025: its after-tax profit of HUF 330 billion (EUR 826.5 million / EUR 1=HUF 399.25) not only surpassed last year’s record, but also far exceeded analysts’ expectations, writes Világgazdaság.

The Budapest-based bank achieved a historic record after-tax profit of HUF 330 billion, surpassing the previous record of HUF 318.5 billion in the third quarter of 2024. Revenues amounted to HUF 747.1 billion, corresponding to a 14 percent increase on an annual basis. OTP thus significantly exceeded the analyst consensus, that predicted a 9 percent increase in revenues to HUF 716.2 billion and a 17 percent increase in profits to HUF 313.6 billion.

The preliminary analyst consensus for OTP’s second quarter this year expected interest income to grow by 7 percent to HUF 475.3 billion, compared to the actual figure of 9 percent to HUF 481 billion. They also forecasted fee income to rise by 7 percent to HUF 148.5 billion, but the bank exceeded this as well, with a 10 percent increase in this line, resulting in HUF 152 billion. The estimate was for an 11 percent increase in operating profit to HUF 429.8 billion, but the final figures show a 19 percent increase to HUF 460.8 billion.

OTP set aside HUF 66.5 billion for risk costs during the quarter, 44 percent more than in the same period last year.

With regard to the results, it is important to note that OTP accounted for the entire year’s extra profit tax in the first quarter, and from the second quarter onwards, it can reduce this amount based on its government securities purchases. Thus, the second to fourth quarters account for a larger proportion of the total annual results than the first quarter. The bank recorded HUF 64.2 billion in corporate tax for this quarter, 12 percent less than a year ago and 66 percent less than in the first quarter.

OTP’s announcement highlights that that, together with the latest figures, OTP generated a net profit of HUF 518.6 billion in the first half of the year, that corresponds to an annual growth of 2 percent. However, taking into account the special items accounted for in a lump sum for the whole year, the figure is HUF 592 billion, that represents an annual growth of 10 percent.

The bank’s detailed statement shows that OTP’s core business in Hungary generated nearly one-third of the total profit, HUF 106.7 billion, that is a 71 percent increase on an annual basis.

The second largest profit generator was the Bulgarian subsidiary with HUF 54.8 billion, while the Russian subsidiary came in third with HUF 47.5 billion in profits.

The bank’s announcement highlights that the quality of the loan portfolio is stable, with the underlying processes characterizing credit quality continuing to develop favorably overall during the quarter. Consolidated deposits grew by 2 percent on a quarterly basis and by 5 percent in the first six months on an exchange rate-adjusted basis, resulting in annual growth of 12 percent adjusted for the impact of the Romanian sale. Hungarian retail deposits grew by 10 percent over the past 12 months and by 7 percent in the first six months of this year.

OTP’s balance sheet total amounted to HUF 44,337,749 million at the end of the quarter, 4 percent more than a year earlier.

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