Optima bank (OPTIMA) Q2 2024 earnings summary

Executive summary

• Net profit for 1H 2024 reached €69.0m, up 57% year-over-year, with ROTE at 26.7% and EPS at €0.94, both showing significant improvement.

• Loans grew 50% YoY to €3.0bn and deposits increased 34% YoY to €3.7bn, driving a 41% YoY expansion in the balance sheet.

• Loan disbursements in 1H 2024 nearly matched full-year 2022 levels, reached 60% of 2023's total, and totaled €1,222mn, up 27.2% YoY.

• Dividend of €0.44 per share was approved and paid in July 2024.

• Customer satisfaction remains world class, with a Net Promoter Score above 80.

Financial highlights

• Net interest income rose 51% YoY to €91.5mn, with core income up 47% YoY and net fee income up 33% to €19.1mn.

• Net interest margin (NIM) stood at 4.36% in 1H 2024, up from 4.17% a year earlier.

• Cost to core income ratio improved to 25.4% from 32.3% YoY.

• Profit before tax for 1H 2024 was €87.8m, up 63% YoY.

• Operating expenses increased 10% YoY to €26.6mn, mainly due to higher staff costs.

Outlook and guidance

• FY 2024 profit guidance raised to over €134m, with ROTE expected above 24%.