OTP Bank (OTP) investor relations material

Executive summary

• Profit after tax grew 10% year-over-year in the first half, driven by a 20% increase in operating profit and cost efficiency, despite higher risk costs and regulatory charges; reported profit after tax was HUF 519 billion, up 2% year-over-year.

• ROE reached 23.2% (adjusted for special items), with strong portfolio quality and stable capital and liquidity positions; CET1 at 18%.

• Special items, mainly banking taxes and regulatory charges, reduced profit by HUF 123 billion; higher windfall profit tax in Hungary and increased corporate tax rates in Ukraine and Russia impacted results.

• Maintained dominant market positions in CEE, with 43% of net loans in Eurozone+ERM II and 75% within the EU.

• Recognized as a top performer in EBA stress test and S&P Global rankings.

Financial highlights

• Consolidated profit after tax reached HUF 519 billion in 1H 2025 (+2% y-o-y); operating profit up 20% y-o-y; net interest income rose 8–9% y-o-y (FX-adjusted); net interest margin stable at 4.29–4.31%.

• Cost to income ratio improved to below 39%, outperforming guidance; operating expenses up 7–10% y-o-y.

• Group loan volume grew 7% FX-adjusted in the first six months; deposit growth reached 5% overall.

• Stage 3 ratio declined to 3.4% at end-2Q 2025; provisioning policy remains conservative.

• EPS (diluted, adjusted): HUF 2,005 (+5% y-o-y); book value per share: HUF 20,258 (+19%).

Outlook and guidance

• Loan growth expected to exceed last year's 9%, with strong first-half performance supporting this outlook.

• Net interest margin projected to remain flat near 4.28%; cost to income ratio expected close to 41.3%.

• Portfolio quality to stay stable, but risk cost rate will be higher than last year due to increased provisioning.

• ROE is expected to be lower than 2024 (23.5%) due to decreased leverage and external risks.

• Macroeconomic forecasts slightly downgraded due to global tariff uncertainties; Hungary's GDP growth now estimated at 0.6%.