A strong quarter again
OTP posted HUF 281 bln net profit in the third quarter vs. our estimate of HUF 255.5 bln and consensus of HUF 224.2 bln. Better results stemmed from higher operating profit (+8% ahead of our estimate) and lower provisioning (HUF 3.2 bln vs. our forecast of HUF 15 bln). NII came 4% ahead of consensus and other operating income was substantially higher than estimates (HUF 91 bln vs. HUF 57 bln).
Key positives
- OTP had a better result than expected thanks to the revenue side as well as better provisions and costs. NIM improved by 19 bps as a result of euro related countries and Hungary NIM was also up at last on NBH easing cycle.
Key negatives
- Uzbekistan provisioning was huge in the quarter, particularly including the negative of HUF 24 bln related to the acquisition under the adjustments line.
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.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.