OTP Bank - Profit Beat On Lower One-Off, Not So Conservative Guidance
Profit beat on lower one-off, not so conservative guidance
OTP came up with a net profit figure of HUF 115 bln, above market estimate of HUF 103 bln and our forecast of HUF 105 bln as interest rate cap cost edged lower than expected. Y-o-Y adjusted profit growth (+24%) was driven by foreign subsidiaries as Hungarian NII erosion took its toll. The mgmt. released its guidance for 2023 which claims high uncertainty related to the war and the Hungarian economy. Nevertheless, the Bank expects an adjusted ROE similar to 2022 and a positive one-off of EUR 230 mln (HUF 87 bln) due to the NKBM acquisition. This would leave a cushion for the Group and would imply a PEx of below 6.0, a quite attractive level. Despite the current political risk in Hungary, we believe the recent sell-off should cease thanks to 2023 guidance. The Bank will propose HUF 300 per share dividend which translates to a 3% yield.
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.