OTP Bank (OTP) investor relations material

Executive summary

• Achieved 15% FX-adjusted organic loan growth in 2025, with profit after tax reaching HUF 1,146 billion, a 7% year-over-year increase, and ROE at 21.6%.

• Operating profit rose 10% year-over-year, driven by volume and margin improvements, while total income increased 11% and EPS (diluted, adjusted) grew 10%.

• Stage 3 ratio declined to 3.5%, indicating stable portfolio quality despite increased risk costs in Russia, Ukraine, and Uzbekistan.

• Foreign operations contributed 71% of consolidated profit, with strong profit growth in Serbia, Ukraine, and Russia.

• MSCI ESG rating upgraded by two notches to 'A' in November 2025.

Financial highlights

• CET1 ratio at 18.1%, leverage ratio at 10.8-11%, and net loan-to-deposit ratio at 77%.

• Net interest income grew 9% year-over-year to HUF 1,945 billion, with net interest margin at 4.34%.

• Net fee income rose 11% year-over-year, mainly from higher securities commissions.

• Operating expenses increased 12-14% year-over-year, partly due to wage inflation and a major donation.

• Cost-to-income ratio stable at 41.7%; taxes increased 15% due to higher windfall and transaction taxes.

Outlook and guidance

• Management expects continued supportive macroeconomic conditions and similar 15% loan growth in 2026, with net interest margin near 4.34%.

• Cost/income ratio expected to be slightly higher than 41.7%; ROE may decline further due to leverage reduction.

• Dividend proposal of HUF 300 billion for 2025 profits, with intention to maintain or increase dividends and pursue value-generating acquisitions.

• Continued issuance of MREL-eligible instruments and covered bonds planned.