Optima bank (OPTIMA) Q2 2024 earnings summary

Executive summary

• Net profit for FY 2023 reached €103mn, up 143% year-over-year, and for 1H 2024 reached €69.0mn, up 57% YoY from €44.1mn in 1H 2023.

• Normalized net profit for FY 2023 was €107.4mn, up 152% year-over-year.

• Loan balances increased by €765mn to €2.5bn in FY 2023 (45% YoY), and rose 50% YoY to €3,029mn in 1H 2024.

• Deposits grew 47% YoY to €3.2bn in FY 2023 and increased 34% YoY to €3,715mn in 1H 2024.

• Dividend of €0.44 per share was proposed for FY 2023 and approved and paid in July 2024.

Financial highlights

• Net interest income rose 134% YoY to €142.2mn in FY 2023 and 51% YoY to €91.5mn in 1H 2024.

• Net fee and commission income increased 44% to €32.1mn in FY 2023 and 33% YoY to €19.1mn in 1H 2024.

• Operating expenses rose 36% to €56.9mn in FY 2023 and 10% YoY to €26.6mn in 1H 2024.

• Cost to core income ratio improved to 29.3% in FY 2023 and 25.4% in 1H 2024.

• Cost of risk was 0.48% for FY 2023 and decreased to 0.52% in 1H 2024.

Outlook and guidance

• Management expects increased credit demand and further balance sheet growth, with profit guidance for 2024 revised upwards to over €134mn and ROTE expected above 24%.

• Focus remains on maintaining best-in-class returns and sustainably high payout levels.