OTP Bank reported a significant third-quarter performance, with consolidated adjusted profit after tax reaching HUF 318.514B (EUR 826M), an 8% increase from last year and 19% above the previous quarter. This result exceeded analysts’ expectations, which forcasted HUF 290.574B (EUR 754M) profit.
For the first nine months, consolidated adjusted profit after tax was HUF 826.405B (EUR 2.14B), down 4% year-over-year.
Nearly 70% of OTP’s profit came from its foreign operations, underscoring the bank’s strong international presence.
The third-quarter results were influenced by one-off items, including a HUF 16B (EUR 41M) adjustment for cheque and baby loans and a HUF 10.5B (EUR 27M) positive impact from the sale of its Romanian bank. Total risk costs for the quarter amounted to HUF 27B (EUR 70M), primarily from credit risk costs of HUF 15B (EUR 39M) incurred by OTP’s Russian and Bulgarian subsidiaries, with some relief in Hungary.
Operating profit rose 22% year-over-year to HUF 1,137B (EUR 2.94B) for the first three quarters, supported by higher net interest income and fees.
Total revenue grew 19% to HUF 1,928B (EUR 5B) in the first nine months, driven by a strong net interest income of HUF 1,321.B (EUR 3.4B).
For 2024, management expects the net interest margin to exceed the 2023 level of 3.93%, with a stable cost-to-income ratio around 45%. Although no major acquisitions are planned, OTP continues to explore opportunities for strategic growth.
OTP Bank’s strong results and cautious 2024 outlook underline its resilience and strategic focus on growth, leveraging international gains and maintaining a stable risk profile.
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