• OTP Bank Romania is on the right track pursuing its business consolidation objective, reporting good performance in its local operation and consolidated financial results.
• The operating profit reached 120 million RON, marking an increase of 39% compared to the same interval in 2022.
• Net interest income increased by 39% y-o-y, to a total of 436 million RON.
• Performing loans volume increased by 1% compared to the previous quarter, driven by demand in the Corporate credit area. 
• Deposits increased by 1% compared to the first quarter of 2023, following a 3% growth in corporate deposits. 

Bucharest, August 11, 2023 – OTP Group announces the financial results for the first half 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 183 million RON in the first semester of 2023, driven by higher operating profit and positive risk costs on loans. 

Operating profit in the first six months of 2023 reached RON 120 million, up 39% over the same interval of last year, while net interest income jumped by 39% y-o-y, and net fees increased by 16%. As mentioned, operating expenses rose by 6%, with a growth rate lower than the rate of inflation due to the moderate advance of administrative expenses of 2%, while depreciation costs decreased by 8%.Also, in the second quarter of the year operating expenses declined in nominal value by 18%, largely because annual supervisory fees were fully paid in a lump sum in the first quarter based on preliminary figures. Then, in the second quarter, part of this amount was written back, which overall improved cost dynamics.

“The performance we have achieved in the first part of the year marks a new milestone for us, the highest ever profit in the bank’s history, underlining our commitment to progress, to deliver excellent service for our clients and for our local business goals. We have made meaningful steps on our local consolidation process, and business continues on the right track even during the potential sale process we have recently started. 
We are content to share excellent figures now across our business lines and operational metrics, a collective effort also reflected in the award received from Global Finance, which recently selected us as the best bank in Romania, considering the bank's great financial performance and significant development in the Romanian banking sector,” said Gyula Fatér, CEO OTP Bank Romania.

The net interest income increased by 39%, to a total of RON 436 million. The improvement was predominantly driven by the 1 pp y-o-y increase in net interest margin.

In the first six months, the total risk cost structure improved significantly, considering the selling the local factoring company’s non-performing loan portfolio. At the same time, another important reason for this improvement was releasing provisions for loan impairment, owing to the revision of the macroeconomic expectations.

The performing loan volumes decreased by 2% y-o-y in the first half of 2023, while q-o-q said volumes grew by 1%. This was largely driven by the increase in corporate loans, while the retail loan book shrank further. 

FX-adjusted deposit volumes increased by 1% compared to the first quarter of 2023, following a 3% rise in Corporate deposits, while retail deposits remained stable. Comparing the first half of 2023 with the same interval of last year, deposits grew by 17%, driven by a 26% surge in the retail segment. The net loan/deposit ratio decreased to 115% (-22 pps).

According to local reporting standards, the bank´s assets reached the level of RON 19,5 billion, decreasing by 1% compared to June 2022. 

The bank's capital adequacy ratio reached the level of 21.16% (+1.14 pp y-o-y) on the background of risk-weighted assets decrease.

In the first six months of 2023, OTP Group has registered an adjusted after-tax profit of HUF 284 billion (RON 3.678 million) while the consolidated accounting loss/profit was HUF 382 billion (RON 4.948 million).

Profit contribution of OTP Core – Hungary (HUF 74 billion / RON 953 million), DSK Bank in Bulgaria (HUF 53 billion / RON 689 million), the Slovenian operation (HUF 34 billion / RON 443 million), the Russian (HUF 33 billion / RON 432 million), the Ukrainian (HUF 18 billion / RON 230 million), the Croatian (HUF 17 billion, RON 219 million), the Serbian (HUF 14 billion / RON 184 million), the Montenegro operation (HUF 5 billion / RON 59 million), the Albanian subsidiary (HUF 4 billion / RON 55 million) and Moldavian subsidiary (HUF 4 billion / RON 53 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 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. 

Contact: 
Communication Team 
comunicare@otpbank.ro