OTP Acknowledges EU-wide Stress Test Results

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OTP Bank, Hungary's biggest commercial lender, acknowledged on Friday the results of a 2023 stress test conducted by the European Banking Authority (EBA) across the European Union, according to a report by state news wire MTI.

According to the stress test results, the fully loaded consolidated Common Equity Tier 1 (CET1) ratio of OTP Bank would change to 20.18% under the baseline scenario and to 14.48% under the adverse scenario by 2025 from 15.24% at end-2022.

Based on the results, OTP said it would take possible management actions for mitigating the impact under the adverse scenario, assess the impact of the results on its forward-looking capital plans and its capacity to meet applicable prudential requirements and determine whether any additional measures or changes to its capital plan are needed.

The 2023 stress test does not contain a pass/fail threshold but is designed to be used as a source of information for the purposes of the supervisory review and evaluation process.

In a separate statement, the National Bank of Hungary (MNB) noted that OTP was the only Hungarian lender to participate in the exercise as it is the only local bank with assets exceeding the EUR 30 billion participation threshold.

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