Optima bank (OPTIMA) Q3 2024 earnings summary

Executive summary

• Net profit for 9M 2024 reached €108.2m, up 50% year-over-year, surpassing FY 2023 net profit of €103m, with ROTE at 26.8% and EPS at €1.47, reflecting strong profitability and operational efficiency.

• Loans grew 48% year-over-year to €3.3bn, with loan disbursements totaling €1.9bn, and deposits increased 32% to €4.1bn, including record-high quarterly inflows in 3Q 2024.

• Core income rose 40% year-over-year, with net interest income up 43% to €141.1m and net fee income up 30% to €29.3m, driven by higher loan volumes and robust fee generation.

• Cost-to-core income ratio improved to 25.0%, reflecting industry-leading cost efficiency and positive operating leverage.

• Asset quality remains strong with NPE ratio at 0.9% (lowest in Greek banking), total NPE coverage above 100%, and cost of risk declined to 45–50bps.

Financial highlights

• Net profit for 9M 2024 was €108.2m, up 50% year-over-year; profit before tax rose 55% to €136.3m.

• Core income reached €170.4m, up 40% year-over-year; net interest income was €141.1m (+43%), and net fee income €29.3m (+30%).

• Loans increased 48% year-over-year to €3.3bn; deposits rose 32% to €4.1bn.

• Assets expanded by 34% year-over-year to €4.9bn.

• EPS for 9M 2024 was €1.47, up 50% year-over-year.

Outlook and guidance

• 9M performance is on track to exceed FY 2024 guidance, with net profit already at €108.2m versus >€124m target and guidance for net profit above €134m and ROTE over 24%.

• Loan and deposit growth have surpassed initial FY24 guidance, with net loans up €849m and deposits up €940m year-to-date.

• Strategy focused on expanding market presence and leveraging strong business model and team.