• OTP Bank Romania continues the local activities consolidation strategy, with positive evolutions on the main business lines, investment projects and operational results.
• The operating profit reached 47 million RON, marking an increase of 37% compared to 2022.
• Net interest income increased by 10% q-o-q, to a total of 208 million RON.
• Performing loans volume decreased by 2% compared to the previous quarter, following the 4% reduction in demand in the retail credit area.
• Deposits decreased by 1% compared to the last quarter of last year, following a moderate trend, similar to that in the lending area (+12% y-o-y).
• The after-tax result reached 15 million RON, the indicator being influenced by the increase in operational expenses and risk costs compared to previous quarter.

Bucharest, May 11, 2023 – OTP Group announces the financial results for the first three 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 an after-tax profit of 15 million RON in the first quarter of 2023, being influenced by the increase in operating expenses (+12%) and risk costs (+24%) compared to the last quarter of 2022. 

Operating profit in Q1 2023 reached RON 47 million, up 37% over the same quarter last year, supported by the effect of a 12% increase in total revenue compared to the same period last year. At the same time, operating expenses rose 12% q-o-q, largely due to the annual deposit insurance fee paid in January for a full year. Compared to the first quarter of last year, operating expenses increased by only 7% in the first three months of 2023, accommodating an FTE increase of 2.5% and an annual inflation rate of 14.5%.

"The beginning of this year represents a transition between the context of 2022 and the gradual improvement expected for the main economic indicators during this year. To the same extent, the developments of the main business lines differ according to market trends and changes in customer preferences, so we are overall satisfied with the performance of the first quarter of the year. We achieved good financial results, with increases in revenues and operational profitability compared to the previous year, strengthening the bank's position at a time when some business segments present certain challenges. Thus, the team focused on proposing an offer adapted to the current context to support individual clients and the requirements of the local business environment. In 2023 we are moving in the same direction, with a portfolio of products and services constantly updated to the evolution of the local economy, to bring added value to customers, while continuing to work towards the goal of a balanced and sustainable local growth.", said Gyula Fatér, CEO OTP Bank Romania.

The net interest income increased by 10%, to a total of RON 208 million. A positive effect, which significantly contributed to this indicator improvement, stems from the bank’s active asset liquidity management, while the net income from commissions increased by 40% on the account of leasing contract early termination fees. The trend of improvement in the net interest margin continued; the increase was 49 basis points q-o-q to 4.02%.

In the first quarter, the total risk cost increased by 24% q-o-q to RON -29 million, following the change in the volumes of provisions for other risks. Provision for loan impairment decreased by 15% quarter-on-quarter (-2% y-o-y).

The performing loan volumes decreased by 2% q-o-q in the first quarter of the year, following the 4% decrease in the retail loans area, mainly due to the high proportion of early repayments and in line with the local mortgage market evolutions. On an annual basis, compared to the first quarter of last year, lending for MSEs grew by 3%, for the corporate sector by 10%, while the leasing area had an increase of 20%.

FX-adjusted deposit volumes decreased by 1% compared to compared to the last quarter of 2022, following a moderating trend similar to that in the lending area. Compared to the first quarter of 2022, however, the deposits volumes increased by 12%, fuelled by growth in term deposits. The net loan/deposit ratio continued to improve and fell to 115% (-1 pp q-o-q and -9 pp y-o-y).

According to local reporting standards, the bank´s assets reached the level of RON 19.6 billion, increasing by 6% compared to March 2022. 

The bank's capital adequacy ratio reached the level of 21.96% (1.19 pp y-o-y) on the background of a more emphasis pace increase of own funds.

In the first three months of 2023, OTP Group has registered an adjusted after-tax profit of HUF 187 billion (RON 2,368 million) while the consolidated accounting loss/profit was HUF 195 billion (RON 2,465 million).

Profit contribution of OTP Core – Hungary (HUF 43 billion / RON 545 million), DSK Bank in Bulgaria (HUF 36 billion / RON 451 million), the Croatian operation (HUF 13 billion, RON 162 million), the Serbian (HUF 16billion / RON 208 million), the Slovenian (HUF 20 billion / RON 256 million) the Ukrainian (HUF 13 billion / RON 160 million), the Russian (HUF 18 billion / RON 227 million), the Montenegro operation (HUF 4 billion / RON 56 million), the Moldavian subsidiary (HUF 4 billion / RON 57 million) and Albanian subsidiary (HUF 4 billion / RON 48 million),
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 a subsidiary of OTP Group, a universal bank with a very good presence in Central and Eastern Europe, that provides complete financial solutions, being active in the retail and corporate segment as well. From 2019, OTP Bank is going through an extensive transformation process, through which it aims to grow significantly in the business segments and also to create a better customer experience. Having a continuously growing team, that embraces change and harnesses its potential, OTP Bank Romania is building a culture of trust at every level of the organization. The bank ranks 9th in terms of assets in the ranking of banking players in Romania, according to the latest NBR data. In Romania, the OTP Group members are the following: OTP Bank Romania, OTP Consulting, OTP Leasing, OTP Asset Management, OTP Factoring, OTP Advisors and OTP Bank Romania Foundation.

OTP Group has more than 70 years of activity in the financial sector in Central and Eastern Europe, while the Romanian subsidiary has marked 17 years of presence in the local market. Promoting innovation, stable growth and integrated financial services, OTP Group has become a dominant player in the Central and Eastern European market and is considered an important banking group even on a European scale. The community of about 40 thousand employees serves nearly 16,3 million customers daily in 11 countries. 


For more info:
Communication Team 
OTP Bank Romania, www.otpbank.ro 
E-mail: comunicare@otpbank.ro