In line Q4, cautious guidance
Key positives
Total revenues came better than expected (+4.4% q-o-q and 0.6% y-o-y). Lending re-mained robust across most of the countries (+5.8% q-o-q, 11.0% y-o-y). Capitalization remains comfortable at 15.4% after dividend accrual. Risk cost was in the guidance ex-pectation of up to 125 bps. Risk cost is expected to decline next year and ROE should be higher than 2020 13%.
Key negatives
Net interest margin declined further to 3.4%, -13 bps in a quarter and this trend is ex-pected to continue. Stage 2 ratio increased substantially to 13.9% from 11% partially due to model calibration, and risk cost remained elevated in the fourth quarter.
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.