The consolidated adjusted net profit of
Diluted earnings per share from adjusted after-tax profit came to HUF898.
Net interest income jumped 40% to HUF435.3bn, net revenue from commissions and fees increased 17% to HUF121.2bn.
OTP released HUF6.9bn of risk provisions, after booking HUF8.8bn of risk costs in the base period.
OTP noted that starting in Q1 2024, only the effect of goodwill impairments and acquisitions would be taken out from the P&L hierarchy and shown at a consolidated level as adjustment items, while all other previous adjustment items would be booked at the particular geographies or business segments where they arose.
In a disclaimer regarding war-related risks, OTP said the precise consequences of the war in
OTP noted that the impact of a deconsolidation of its Russian business and write-down of intragroup exposure would cut its CET1 ratio by 5bp, while the negative effect of a deconsolidation in
Total assets reached HUF41.5 trillion at the end of March, up 15% y/y.
Gross client loans increased by 9% to HUF23.4 trillion, the stock of deposits climbed 8% to HUF30.4 trillion.
Stage 3 credit-impaired loans under IFRS 9 comprised 4.3% of the gross loan portfolio at the end of the period. The Stage 3 ratio was highest in
At the press conference after the report, deputy-CEO
OTP’s Bulgarian unit, DSK, remained the most profitable foreign unit with a net profit of HUF43bn, up 23% y/y.
OTP, present in ten countries outside
Applications for mortgage loans had climbed 176% in Q1, while new contract volume more than doubled. Mortgage outlays for the whole market could exceed HUF1 trillion this year, up from HUF686bn in 2023. SME lending still hasn't picked up but was stable during the quarter, in line with the trend for the region, he said. Outlays of state-subsidised credit schemes remained significant, and augured a pickup in corporate lending during the rest of the year.
The Hungarian unit booked a HUF50bn profit, returning from a HUF32bn loss in the base period.
The group liquidity and capital position were stable and showed improvement, with the net loan-to-deposit ratio reaching 73%.
Management left earlier guidance for organic growth in the lending portfolio, cleared of exchange rate effects, unchanged. Net interest margin could be level with that in 2023, while the cost-to-revenue ratio could be around 45% and ROE could be lower than in 2023.
Fielding questions on an offer OTP earlier said it made for a bank in the EU,
If realised, it would be the largest transaction in the bank's history.
Investors reacted positively to the earnings report with OTP stock rising to HUF18,600 reaching a 28-month high in intraday trading, up 0.5%. The share price surged 70% in the last 12 months. The 12-month target price of most analysts is above HUF22,000.
©2024 bne IntelliNews
, source