OTP Q1 profit boosted by business abroad
First-quarter after-tax profit of OTP Bank, Hungaryʼs biggest commercial lender, jumped 23% year-on-year to HUF 65.1 billion, as foreign businesses beefed up the balance sheet, an earnings report published early Friday shows.
OTPʼs foreign units generated 46% of Q1 profit, up from 33% in the base period. The increase was supported by the acquisitions of Splitska banka in Croatia and Vojvođanska banka in Serbia, national news agency MTI reported.
Net interest income increased 9% to HUF 143.6 bln, while net revenue from commissions and fees rose 11% to HUF 49.6 bln.
ROE increased 1.2 percentage points to 16.2%. Diluted earnings per share came to HUF 248 for the period.
OTPʼs total assets stood at HUF 13.511 trillion at the end of March, up 20% from twelve months earlier.
Loan portfolio grows, foreign units strengthen
Net client loans increased 24% to HUF 7.102 tln. The retail lending stock was up 14% at HUF 4.947 tln, while the corporate lending stock jumped 30% to HUF 2.636 tln.
The quality of the lending portfolio improved as the ratio of non-performing loans (NPLs) dropped 5.2 percentage points to 8.9%. OTP set aside provisions for loan losses of just HUF 0.6 bln in Q1, compared to HUF 10.6 bln in the base period.
Client deposits rose 24% to HUF 10.385 tln.
After-tax profit of OTPʼs foreign units, adjusted for one-offs, rose 68% to HUF 36.6 bln. At the same time, adjusted after-tax profit of its businesses in Hungary declined 5% to HUF 42.7 bln.
Profit of DSK Bank, in Bulgaria, fell 16% to HUF 11.3 bln, but profit of OTP Bank Russia increased 13% to HUF 8.5 bln.
Profit of OTP Banka Hrvatska (OBH), in Croatia, reached HUF 7.7 bln, improving from a loss of HUF 1.8 bln in the base period as Splitska banka was included in the consolidation.
Profit of OTP Bank Ukraine soared 76% to HUF 5.8 bln.
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.