• OTP Bank Romania reports great performance in its local operation and high record consolidated financial results.
• The operating profit reached 203 million RON, marking an increase of 39% compared to the same interval in 2022.
• Net interest income increased by 6% y-o-y, to a total of 513 million RON.
• Performing loans volume slightly decreased, by 2% compared to the previous quarter, with a decline in the retail credit area. 
• Deposits increased by 4% compared to the second quarter of 2023, following a 7% growth in retail deposits. 

Bucharest, November 13, 2023 – OTP Group announces the financial results for the first nine months of 2023. According to the report published in Budapest, which presents the consolidated results adjusted in accordance with the Group´s standards, OTP Bank Romania recorded a consolidated net profit of 236 million RON in the first nine months of 2023. 

Operating profit in the first nine months of 2023 reached RON 203 million, up 39% over the same interval of last year, following a 15% increase in total income, while net interest income grew by 6% y-o-y, and net fees increased by 15%, largely as a result of the deposit and transaction fee incomes. Operating expenses rose by 7% y-o-y, still below the high inflation environment which stood to 2 digits level till August 2023, with pressure on salary expenses also, partly compensated by lower contribution to Guarantee deposits fund.

“We are once again celebrating a landmark achievement with record profits, for the second consecutive quarter, as the bank's strategic focus on business consolidation and customer satisfaction has brought us a great financial performance. The new developments and optimization in the operational and product areas have supported our operating profit indicators, and this is actually the result of previous years investments projects, of the consolidation process that begun this year and a dedicated team's efforts. We have managed to achieve these results despite the slight contraction in performing loans, reflecting our prudent approach to credit and focus on maintaining a healthy portfolio. At the same time, our deposit base has seen a substantial increase, particularly in the retail sector, which in this macroeconomic context underscores the confidence our clients place in us as a secure and reliable financial partner. So, our path forward, as we navigate the complexities of the current economic environment, is towards securing the solid financial position of the bank and continue delivering great experiences and service for our customers”, said Gyula Fatér, CEO OTP Bank Romania.

The net interest income grew by 6%, to a total of RON 513 million. The nine-month net interest income was shaped by the higher average interest level of corporate and retail loans, while their volume remained stable. 

In the third quarter, the risk cost amounted to RON 26 million (HUF 2 billion). The main reason for credit risk costs creation was the extra provision on account of the restructuring of a corporate customer’s syndicated loan, which exposure was reclassified as Stage 3 for precautionary reasons. 

The gross loan volumes decreased by 2% y-o-y in the first nine months of 2023, while q-o-q volumes decreased by 1%. This was largely driven by the steady demand in corporate loans, while the leasing line increased by 14%. Within the loan structure, Stage 1+2 loan volumes dropped by an FX-adjusted 1% q-o-q, largely driven by the decline in retail loans, which could be only partly offset by leasing volumes’ growth.

FX-adjusted deposit volumes increased by 4% compared to the second quarter of 2023, following a 7% rise in retail deposits, while corporate deposits remained stable. Comparing the first nine months of 2023 with the same interval of last year, deposits grew by 11%, driven by a 27% surge in the retail segment. The net loan/deposit ratio decreased to 109% (lower by 18 pps compared to the end of 2022).

According to local reporting standards, the bank´s assets reached the level of RON 20 billion, decreasing by 3% compared to September 2022. 

The bank's capital adequacy ratio reached the level of 21.31% (-22 bps y-o-y) on the background of transitional adjustment in CET1 decrease.

In the first nine months of 2023, OTP Group has registered an adjusted after-tax profit of HUF 779 billion (RON 10,070 million) while the consolidated accounting loss/profit was HUF 858 billion (RON 11,095 million).

Profit contribution of OTP Core – Hungary (HUF 216 billion / RON 2,790 million), DSK Bank in Bulgaria (HUF 151 billion / RON 1,955 million), the Slovenian operation (HUF 88 billion / RON 1,144 million), the Russian (HUF 73 billion / RON 939 million), the Ukrainian (HUF 52 billion / RON 675 million), the Croatian (HUF 45 billion, RON 587 million), the Serbian (HUF 50 billion / RON 653 million), the Montenegro operation (HUF 17 billion / RON 220 million), the Albanian subsidiary (HUF 11 billion / RON 137 million), Moldavian subsidiary (HUF 12 billion / RON 152 milion),  and Uzbekistan subsidiary (HUF 0.2 billion / RON 3 milion).

The full results of OTP Bank Romania are presented in the table below:



 

The full report published by OTP Bank Plc. is available here.

About OTP Bank Romania

OTP Bank Romania is the subsidiary of OTP Group, a universal bank with a very good presence in Central and Eastern Europe, which offers complete financial solutions, being active in both the retail and corporate segments. After four years of constant and considerable growth in all business lines, OTP Bank Romania is moving towards a process of consolidating its portfolio and operations. With a team that embraces change and capitalizes on its potential, OTP Bank Romania builds a culture of trust at every level of the organization. In Romania, the members of the OTP Group are OTP Bank Romania, OTP Consulting, OTP Leasing, OTP Asset Management, OTP Factoring, OTP Advisors, and the OTP Bank Romania Foundation. 

About OTP Group

OTP Group is one of the fastest growing and one of the leading banking groups in the Central and Eastern European region, with outstanding profitability and a stable capital and liquidity position. With more than 41,000 employees in now 12 countries of the CEE and Central Asian region, the Group provides universal financial services to more than 17.5 million customers. As the most active consolidator in the banking sector of the Central and Eastern European region, the Group has successfully acquired and integrated 23 banks since the early 2000s. Currently, the Bank is a market leader in Hungary, Bulgaria, Serbia, Montenegro, and in Slovenia. OTP Group is headquartered in Hungary and has a diversified and transparent ownership structure. The Banking Group has been listed on the Budapest Stock Exchange since 1995. 

For additional information: 
Communication team
OTP Bank Romania, www.otpbank.ro
Email: comunicare@otpbank.ro