OTP Bank - Back in business
OTP’s reported net income (HUF 93 bln) came beyond market expectations of HUF 82 bln and our estimate of HUF 77 bln. The beat stemmed
from risk provisioning which amounted to HUF 8 bln vs. cons. estimate of
HUF 25 bln.
Key positives
Net F&C increased 4% y-o-y driven by HU and BG. Costs declined 2% yo-y, adjusted for tax accounting, OPEX rose by only 1%. NIM increased
slightly by 5bps, driven by Ukr, RU and one-offs in HU. Stage 3 ratio remained stable (NPLs still down) and Stage 2 ratio were down. Risk cost
declined across the countries, with positive figures in HU, Ro, Moldova.
Key negatives
Mortgage disbursement in HU was weaker, down by 19% q-o-q and 13%
y-o-y. NIM increased in HU as a result of moratorium treatment and consumer l
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.
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