OTP board to propose HUF 190-per-share dividend
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.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.