OTP Bank (OTP) Q2 2025 earnings summary

Executive summary

• Profit after tax increased 10% year-over-year in the first half, driven by a 20% rise in operating profit and strong volume growth, despite higher risk costs and regulatory charges, especially in Hungary.

• Net interest margin remained stable overall, with improvement in Hungary and margin erosion in euro area subsidiaries due to rate cuts.

• Cost-to-income ratio improved to below 39%, outperforming initial guidance.

• Loan portfolio grew 7% FX-adjusted in six months, with strong retail and micro/small corporate growth, especially in Hungary and Uzbekistan.

• Deposit growth was 5% group-wide, with Hungarian retail deposits up 7% in six months.

Financial highlights

• Consolidated profit after tax reached HUF 519 billion in 1H 2025, with a 10% year-over-year increase when adjusting for special items.

• Operating profit up 20% year-over-year; net interest income rose 9% y-o-y organically and FX-adjusted.

• Cost-to-income ratio below 39%, better than last year’s 41.3%.

• Loan growth at 7% in H1, on track to exceed last year’s 9% annual growth.

• CET1 and Tier 1 ratios at 18%, well above regulatory requirements.

Outlook and guidance

• Loan growth expected to exceed last year’s 9%, with no slowdown anticipated.

• Net interest margin expected to remain flat overall, with marginal improvement in Hungary.

• Cost-to-income ratio expected to be close to 41.3% for the year.

• Portfolio quality expected to remain stable, but risk cost rate to be higher than last year’s 38 bps.

• ROE is expected to be lower than 2024 (23.5%) due to decreased leverage.