OTP Bank Rt.

OTP Bank is a financial institution based in Hungary. Co. is engaged in retail banking (account management, bankcards and Electronic sevices - OTPdirekt) corporate banking and private banking. In Hungary traditional banking operations are performed by Co. while specialized services, including car leasing, investment funds and insurance are developed and offered by Co.'s subsidiaries. Co. expands its operations throughout the region via its foreign subsidiaries. As of Dec 31 2011, Co. had total assets of HUF10,200,527,000,000 and deposits of HUF6,398,853,000,000.
  • TickerOTP
  • ISINHU0000061726
  • ExchangeBudapest Stock Exchange
  • SectorBanks
  • CountryHungary
Research Team

The Rear-View Mirror – EME markets: Turkish ISE30 still weak, down 9.6% in August

EME Equity Market – August 2020 Market performance – most indices end August in the black, but the ISE30 Index decline continues, down 9.6%. In August, the MSCI EM Europe Index declined by 1.2% in EUR terms, but stayed mostly flat (+0.1%) in local currency terms. Romania’s BET Index performed the best, up 7.2%; followed by the Greek ASE Index (+2.7%); the Czech Republic’s PX Index (+2.4%); Poland’s WIG20 Index (+2.3%); and the MOEX Index (+0.5%). The Hungarian BUX Index declined by 2.6%, followed by the ISE30 Index, the poor performance of which reflects the current weakness of Turki...

Raiffeisen Centrobank Equity Daily 10.08.2020

 AT: Telekom Austria - 5G auction to start this month (neutral)  HU: OTP - Conference call take-aways (positive)  PL: Alior Bank - 2Q profit warning on PLN 676 mn provisioining (negative)  PL: PGE - Investing into new green energy projects (neutral)  PL: Play Communications - Virgin Mobile Polska acquisition completed (neutral)  RU: LUKoil - OPEC+ limits and COVID-19 impact bring about expectedly weak operating results (neutral)

Michał Konarski ...
  • Mikołaj Lemańczyk

Banks – Free To Seize Rebound Opportunities

The Stoxx Europe 600 Banks index has tumbled 37% since the beginning of the year, with the drop from high to low measuring 46%. As the coronavirus pandemic continues to spread, economic forecasts for the euro area are getting increasingly bleak, with the European Commission currently guiding for an 8.8% contraction this year as compared with 8.3% predicted in March. The crisis has not spared the financial sector, with our aggregate net earnings expectations for the European coverage universe ex Poland slashed by 53% to reflect low interest rates and additional crisis provisions. At the revised...

Research Team

WOOD Daily: MAIL LI, OTP HB, MOL HB, TELEC CP, ULKER TI, TCS LI, ETE GA, Turkey macro, AFLT RX, CAR PW, CEZ CP, HTO GA, FINT SG

HEADLINES: • Mail.ru Group: play time! (stays BUY) • OTP: strong 2Q20 delivery, optimistic 2020E guidance • MOL: 2Q20 results - EBITDA beats forecasts, but net income in the red • O2 CR: strong 2Q20 results with EBITDA up 3% yoy, 2% above consensus POSITIVE • Ulker: 2Q20 results - operationally in line, poor-quality beat on the net profit NEUTRAL • TCS: reports good 2Q20 numbers POSITIVE • National Bank: decent 2Q20 results • Turkey: USD/TRY under pressure, headed back towards 8/USD • Aeroflot: calls EGM for 11 September, plans to submit a proposal to increase the shar...

Stefan Maxian

OTP 2Q 20 - Better 2Q on lower COR, but NIM erosion as the weak spot

OTPs 2Q earnings of HUF 79 bn was ahead of consensus (in line with RCBe) on lower COR while operating income fared in line with expectations. 2Q results have been impacted by HUF 7 bn acquisition related one-offs partly offset by positive effects from provision releases on moratoria (HUF 2 bn).

Dave Nicoski ...
  • Ross LaDuke

Int'l Insights: Emerging Markets Strategy

The MSCI EM index continues to develop positively from a price perspective and we expect higher prices ahead. RS for the MSCI EM index is consolidating when compared to the MSCI EAFE index, which we believe is largely due to consolidation in the U.S. dollar. Therefore, the direction of the dollar will be critical for EM equities. A breakout in the USD may begin to create problems for EM, whereas a failure to break above 97.70-98 resistance and a gradual weakening of the USD should be an environment where EM can outperform. Below we highlight attractive and actionable themes within EM: • EM...

Dave Nicoski ...
  • Ross LaDuke

Vermilion Int'l Compass: Global Equity Strategy

Europe & the UK remain in focus The MSCI ACWI ex-U.S. is breaking topside its nearly 14-month downtrend and above key resistance. The move is being fueled by improvements throughout most of Europe and the UK, along with strength in China over the past 2-3 months. We believe these positive developments are supportive of higher equity prices moving forward. As a result of these and several other observations highlighted below, our outlook on global equities is positive. • Europe & the UK. As has been the case over the last several weeks, a major focus of ours within global equities (ex-U.S.)...

OTP Bank: 1 director bought

A director at OTP Bank bought 5,320 shares at 9,381.266HUF and the significance rating of the trade was 65/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names of board m...

Research Team

The Rear-View Mirror – EME markets: Turkish ISE30 still weak, down 9.6% in August

EME Equity Market – August 2020 Market performance – most indices end August in the black, but the ISE30 Index decline continues, down 9.6%. In August, the MSCI EM Europe Index declined by 1.2% in EUR terms, but stayed mostly flat (+0.1%) in local currency terms. Romania’s BET Index performed the best, up 7.2%; followed by the Greek ASE Index (+2.7%); the Czech Republic’s PX Index (+2.4%); Poland’s WIG20 Index (+2.3%); and the MOEX Index (+0.5%). The Hungarian BUX Index declined by 2.6%, followed by the ISE30 Index, the poor performance of which reflects the current weakness of Turki...

Raiffeisen Centrobank Equity Daily 10.08.2020

 AT: Telekom Austria - 5G auction to start this month (neutral)  HU: OTP - Conference call take-aways (positive)  PL: Alior Bank - 2Q profit warning on PLN 676 mn provisioining (negative)  PL: PGE - Investing into new green energy projects (neutral)  PL: Play Communications - Virgin Mobile Polska acquisition completed (neutral)  RU: LUKoil - OPEC+ limits and COVID-19 impact bring about expectedly weak operating results (neutral)

Michał Konarski ...
  • Mikołaj Lemańczyk

Banks – Free To Seize Rebound Opportunities

The Stoxx Europe 600 Banks index has tumbled 37% since the beginning of the year, with the drop from high to low measuring 46%. As the coronavirus pandemic continues to spread, economic forecasts for the euro area are getting increasingly bleak, with the European Commission currently guiding for an 8.8% contraction this year as compared with 8.3% predicted in March. The crisis has not spared the financial sector, with our aggregate net earnings expectations for the European coverage universe ex Poland slashed by 53% to reflect low interest rates and additional crisis provisions. At the revised...

Stefan Maxian

OTP 2Q 20 - Better 2Q on lower COR, but NIM erosion as the weak spot

OTPs 2Q earnings of HUF 79 bn was ahead of consensus (in line with RCBe) on lower COR while operating income fared in line with expectations. 2Q results have been impacted by HUF 7 bn acquisition related one-offs partly offset by positive effects from provision releases on moratoria (HUF 2 bn).

Raiffeisen Centrobank Equity Daily 07.08.2020

 AT: AMAG - US government to reimpose 10% import duty on aluminium imports from Canada (negative)  AT: IMMOFINANZ - Successfully sells 9,600 sqm office building in Duesseldorf (positive)  AT: Oesterreichische Post - Slump of operating result about in line with expectations (neutral)  AT: OTP - Better 2Q on risk costs, but NIM erosion accelerated (neutral)  AT: Polytec - 2Q earnings beat RCBe partially due to one-off gains, FY 20 sales guidance of ca. EUR 520 mn is 6% ahead of RCBe (positive)  AT: Wienerberger - Extension of management board, both business units with designate...

OTP Bank NyRt: Update to credit analysis

Our credit view of OTP, reflecting its strong domestic franchise, significant foreign operations, adequate capital, and strong liquidity and profitability, as well as improving asset risk.

OTP Bank NyRt: Update to credit analysis

Our credit view of OTP, reflecting its strong domestic franchise, significant foreign operations, adequate capital, and strong liquidity and profitability, as well as improving asset risk.

OTP Bank NyRt: Update following the deposit rating upgrade to Baa1

Our credit view of OTP, reflecting its strong domestic franchise and significant foreign operatios, adequate capital and strong liquidity and profitability as well as improving asset risk

OTP Bank NyRt: OTP Bank's acquisition in Moldova broadens its footprint and complements its domestic franchise, a credit positive

OTP continues to invest in well run, profitable and efficient banks outside of Hungary, in line with its plans to be a leading bank in the Central and Eastern European region.

OTP Bank NyRt: Hungary's largest bank steps up bid to be key regional player but volatile asset risk poses a challenge

OTP's latest acquisitions are a good fit and will help reduce risks from volatile loan quality.

Research Team

WOOD Daily: MAIL LI, OTP HB, MOL HB, TELEC CP, ULKER TI, TCS LI, ETE GA, Turkey macro, AFLT RX, CAR PW, CEZ CP, HTO GA, FINT SG

HEADLINES: • Mail.ru Group: play time! (stays BUY) • OTP: strong 2Q20 delivery, optimistic 2020E guidance • MOL: 2Q20 results - EBITDA beats forecasts, but net income in the red • O2 CR: strong 2Q20 results with EBITDA up 3% yoy, 2% above consensus POSITIVE • Ulker: 2Q20 results - operationally in line, poor-quality beat on the net profit NEUTRAL • TCS: reports good 2Q20 numbers POSITIVE • National Bank: decent 2Q20 results • Turkey: USD/TRY under pressure, headed back towards 8/USD • Aeroflot: calls EGM for 11 September, plans to submit a proposal to increase the shar...

Research Team

WOOD Daily: MONET CP; EBS AV; VESBE TI; SBER RX; MGNT LI; EME Macro/Strategy – ESI; OPL PW; NVTK LI; KCEL KZ; KRKG SV; OPAP GA; OMV AV; BRD RO; RICHT HB; TPEIR GA; ETE GA; OTP HB; TLV RO; NLBR SV

HEADLINES: • MONETA Money Bank: 2Q20 miss on provisions frontloading; bank restores medium-term guidance • Erste Bank: posts lower-than-expected 2Q20, but due to frontloading of risk charges NEUTRAL • Vestel Beyaz: 2Q20 - in line with expectations, but bullish expectations could support share price NEUTRAL • Sberbank: 2Q20 highlights NEGATIVE • Magnit: 2Q20 slightly ahead of expectations POSITIVE • EME Macro/Strategy: July ESI • Orange Polska: key takeaways from the 2Q20 earnings call POSITIVE • Novatek: takeaways from the 2Q20 conference call • Kcell: key takeaways from ...

Research Team

The Rear-View Mirror – EME markets: Equity returns mixed as rebound forces weaken

EME Equity Market – June 2020 Market performance – in June, Turkish equities performed the best (+7.7%), while Hungary was the weakest (-2.2%). Following its rebound in the past couple of months, the MSCI EM Europe Index declined in June, losing 1.8% in EUR terms and 0.6% in local currency terms. Turkish equities were the best performers, with the ISE30 Index +7.7%, followed by Prague’s PX Index (+3.5%), and the WIG20 (+2.3%). After its good run in May, the Romanian BET lost 0.3% in June, while the Russian MOEX was down 2%. Greek equities declined 2.1%, while the worst-performing index w...

Research Team

WOOD Daily: KTY PW, Airlines, OPAP GA

HEADLINES: • Kety: a good stock for bad times (upgraded to BUY) • Airlines: IATA highlights unsustainable debt build-up; we see a short-term opportunity in Aegean • OPAP: key takeaways from the conference call • Short News (OTP)

Research Team

WOOD Daily: OTP HB; ASELS TI; WIZZ LN; AFLT RX; PPC GA; RU Macro; MIL PW; MBK PW; YNDX US; GPW PW; MOEX RX; PKN PW; ECH PW; TL Automotive; PGN PW; CDR PW; MOH GA; ATAD LI; MAVI TI

HEADLINES: • OTP Bank: survivor status priced in already (stays HOLD) • Aselsan: 1Q20 results - strong beat across the board POSITIVE • Wizz Air: 4Q20 - net profit at top range of guidance, outlook uncertain • Aeroflot: 1Q20 - revenue declines by less than traffic, non-cash FX result pushes net to a deep loss NEUTRAL • Public Power Corporation: 1Q20 revenues miss, but quarter confirms return to operating profitability NEUTRAL • Russia macro: a RUB 5trn stimulus plan, with ambitious goals • Bank Millennium: update on rate cuts impact on its underlying NII NEGATIVE • mBank: up...

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the we...

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