Report

5% beat on higher incomes but higher risk costs

Summary: Adj. net income came to HUF 330bn in Q2/25, a 5% beat compared to consensus
estimate of HUF 314bn, a touch below our street-high HUF333bn estimate, which was
attributable to higher-than-expected total incomes. OPEX was fully in-line, while the
provisioning was exceptionally high, up 44% YoY to HUF 67bn in Q2. The management
provided an updated guidance for 2025. They now expect to reach a CIR of “closer to 41.3%
reported in 2024” compared to “somewhat higher than that”, while the risk cost may be “higher
than 38bps reported in 2024” compared to “similar risk profile”
Underlying
OTP Bank Nyrt

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.

Provider
Concorde Securities
Concorde Securities

Concorde Securities Ltd. is Hungary’s leading independent company engaged in investment banking activities. It provides its clients with integrated financial services, including securities trading, research, corporate financing advisory, capital market transactions, wealth management and investment advisory. The operational management of the company is the responsibility of the CEO, while the owners/managers (who control one-third of the company through their shares and options) are in charge of its strategic governance. Concorde Securities Ltd. is a member of the Budapest, Frankfurt, Warsaw and Bucharest stock exchanges, as well as of the Hungarian Association of Investment Service Providers.

Analysts
Gabor Bukta

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