OTP Bank: summary of the first nine months 2024 results

OTP Bank: summary of the first nine months 2024 results

The Group’s cumulated profit after tax amounted to EUR 2,112 million in January-September 2024, with ROE reaching 24.9%. The 4% y-o-y decrease in the profit after tax was due to the EUR 425 million (after tax) one-off direct effect of the inclusion of the two newly acquired banks in the base period in contrast; in 9M 2024 no adjustment items occurred on group level.

In January-September 2024 all geographical segments reported positive results. The share of foreign profit contribution reached 69% after the consolidation of the newly acquired Ipoteka Bank in Uzbekistan and the Romanian bank’s sale completed in July 2024.

Cumulated adjusted profit after tax improved by 19%¹, whereas the organic² and FX-adjusted growth was 14% y-o-y.

The cumulated operating profit increased by 22%, mainly driven by the 28% increase in net interest income (+25% organically and FX-adjusted), boosted by both expanding business volumes and improving margins.

Operating costs went up by 14%, while the organic and FX-adjusted cost growth hit 13%. The cumulated cost to income ratio improved by 1.7 pps to 41.0%.

The EUR 814 million profit after tax realized in the third quarter of 2024 was consistent with 19% or EUR 129 million q-o-q increase, driven mainly by the EUR 54 million higher other income and the EUR 49 million decrease in impairment charges.

In 3Q operating income grew 7% q-o-q, while it posted 6% growth organically and FX-adjusted.

Consolidated credit quality remained stable, main credit quality indicators continued to develop favourably.

Consolidated deposits expanded by 2% q-o-q without the effect of the deconsolidation of Romania and FX-adjusted, culminating in 5% ytd growth.

¹As the amounts are expressed in euros, the dynamics of the changes are expressed in forints, therefore the percentage values may be distorted by exchange rate changes.

²Regarding the y-o-y changes in the different P&L lines in the first nine months, organic growth is defined as follows: without the contribution of Ipoteka Bank (consolidated from July 2023) and the Romanian bank sold in July 2024, and without the EUR 26.8 million one-off gain presented on the other income line in 3Q 2024 in the wake of the deconsolidation of Romania. Regarding the q-o-q changes in the different P&L lines in 3Q 2024, organic growth is defined as follows: without the contribution the Romanian bank sold in July 2024, and without the 26.8 million one-off gain presented on the other income line in 3Q 2024 in the wake of the deconsolidation of Romania.