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OTP board to propose HUF 190-per-share dividend

Telco

jessica fejos

The board of OTP Bank will propose payment of a HUF 53.2 billion dividend on last yearʼs earnings, CFO Laszlo Bencsik said after the lender released its fourth-quarter earnings report on Friday, Hungarian news agency MTI reported.

The dividend works out to a little more than HUF 190 per share, after taking into account treasury shares, Bencsik said. Last year, OTP paid a total HUF 46.2 bln dividend — about HUF 165 per share — on 2015 earnings.

OTP Bank announced early this morning that its Q4 after-tax profit had climbed 70% year-on-year to HUF 28.3 bln as net revenue from commissions and fees rose and the lenderʼs “other non-interest income” doubled.

Net interest revenue was flat at HUF 133.2 bln, but net revenue from commissions and fees climbed 11% to HUF 48.2 bln. Other net non-interest income doubled to HUF 12.2 bln. Profit was under the HUF 33 bln estimate by analysts polled by Portfolio.hu.

Taking into account adjustments for one-off factors, after-tax profit edged down 1% to HUF 26.5 bln. Earnings per share came to HUF 101. Full-year profit jumped 67% as risk costs plummeted.

OTPʼs after-tax profit for the full year increased 67% to HUF 201.2 bln on a big decline in risk costs. Adjusted for one-offs, after tax profit was practically the same. Total risk costs declined 58% to HUF 93.2 bln.

Net interest revenue dropped 6% to HUF 521.9 bln. Net revenue from commissions and fees increased 5% to HUF 176 bln.

Return on assets climbed 0.7 percentage point to 1.8%. Return on equity rose 5.5 percentage points to 15.2%. Earnings per share came to HUF 765. 

Foreign units contributed HUF 75.5 bln to profit. OTPʼs foreign businesses accounted for 38% of adjusted after-tax profit for the full year. In the base period, the businesses racked up a combined loss of HUF 3.4 bln. Most of the foreign units were profitable, with exceptions in Russia, where OTPʼs virtual bank had a HUF 5.9 bln loss, as well as in Slovakia and Montenegro.

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