Profit was well over the HUF 31.0 billion estimate by analysts polled by Portfolio.hu. Earnings per share came to HUF 152. Net interest income rose 2% to HUF 162.6 billion and revenue from commissions and fees increased 13% to HUF 42.8 billion, but operating costs climbed 10% to HUF 105.7 billion. OTP Bank also booked HUF 13.4 billion on the bank levy and an extraordinary payment to the central budget to make up for a shortfall in the duty on financial transactions. Excluding these charges and other one-off adjustments, adjusted consolidated after-tax profit rose 41% yr/yr to HUF 52.3 billion.
Provisioning was down 7% at HUF 59.8 billion, but the proportion of non-performing loans in the portfolio rose to 20.8% from 19.9%. New NPL volume rose at almost all of the bank’s units, increasing the most in Russia and Ukraine, OTP said. Adjusted return on assets rose to 2.0% from 1.5%. Adjusted return on equity climbed to 13.7% from 10.6%. Total assets rose 1% to HUF 10,048.6 billion in the twelve months to the end of June. Net assets increased 7% to HUF 1,525.3 billion. The contribution to group profit by OTP Bank’s foreign units fell to 24% in Q2 from 42% in the base period as earnings at the unit in Russia plunged.
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