Hungarian OTP Bank’s 2024 profit exceeds psychological barrier

Fourth-quarter consolidated after-tax profit of OTP Bank, Hungary’s biggest commercial lender, reached HUF 249.7bn, climbing 17pc after adjustments, an earnings report released ahead of the opening bell on Friday shows. For the full year, OTP booked after-tax profit of HUF 1,076.1bn, up 19pc after adjustments.

Net interest income rose 8pc to HUF 460.7bn. Net revenue from commissions and fees increased 12pc to HUF 148.3bn. Risk costs jumped 94pc to HUF 92.5bn. OTP noted that provisions for impairment on loan losses came to HUF 58.5bn, while other risk costs reached HUF 34.0bn. Diluted earnings per share from adjusted after-tax profit came to HUF 952. For the full year, OTP booked after-tax profit of HUF 1,076.1bn, up 19pc after adjustments.

Net interest income rose 22pc to HUF 1,782.6bn and net revenue from commissions and fees increased 14pc to HUF 545.6bn. Risk costs climbed 83pc to HUF 158.5bn. Diluted EPS from adjusted after-tax profit reached HUF 4,066.

OTP’s foreign units generated 68pc of adjusted after-tax profit. While profit of the core business in Hungary increased 16pc to HUF 270.4bn, profit of DSK Group in Bulgaria edged up 1pc to HUF 200.8bn and profit of OTP Bank Russia climbed 43pc to HUF 136.9bn. Profit of OTP Bank Slovenia inched up 1pc to HUF 113.3bn.

OTP had total assets of HUF 43,419bn at the end of 2024, up 10pc from twelve months earlier. Gross stock of client loans edged up 3pc to HUF 24,335bn and deposit stock inched up 2pc to HUF 31,666bn. The non-performing loan ratio declined 0.7pp to 3.6pc.