OTP Group announces the financial results for the first half of 2019. According to the report published in Budapest, which presents the consolidated result adjusted in accordance with the Group’s reporting standards, OTP Bank Romania recorded a consolidated after-tax profit of RON 53,6 million (HUF 3,6 billion), with 164% higher than the base period.
The FX-adjusted performing loan volumes increased with 17% year-on-year, supported by robust consumer demand for mortgage type loans, from SME´s and corporate lending dynamics. During this time, the corporate segment has been the main driver with a volume increase of 14% YTD, compared to 2018. The retail business also contributed to the growth with an 16% year-on-year.
As for new loan disbursements, the mortgage loan disbursement increased more than two times in the first semester of 2019 versus the basis period and the performing volume increased by 16% y-o-y, whereas the cash loan sales grew moderately by 1%.
On the first semester’s total risk costs amounted RON 31,3 million (HUF 2.1 billion), dropping by 18% compared to the same period of 2018 due mainly to the significant improvement in the quality of the mortgage loan portfolio.
FX-adjusted deposit volumes registered a 26% increase compared to the first semester of 2018 and by 10% year to date. The growth was supported by retail (+8% YTD) and especially corporate (14% YTD) inflows. The total assets of the bank reached RON 12,27 billion (HUF 838 billion), a 10% YTD increase.
During the first semester of 2019, the volume of non-performing loans continued to decline by 26%% year over year. The DPD90+ ratio declined to 5,6% from 9,3% reached at H1 2018. The volume of Stage 3 loans under IFRS 9/gross customers loans dropped quarterly from 9.6% to 8,9% and amounted to RON 831,7 million (HUF 56,8 billion) at the end of the second quarter.
According to local regulation, the Bank’s standalone total assets posted RON 11.78 billion, a net profit after tax of RON 24.8 million, and the capital adequacy ratio slightly decreased to 17.11 %, by 7 bps compared to the previous quarter.
OTP Group has registered in the first half of 2019 an adjusted after-tax profit of RON 3 billion (EUR 632 million, HUF 202,6 billion), with y-o-y growth of 19%. Profit contribution of OTP Core – Hungary (HUF 97,3 billion / EUR 304 million), DSK Bank in Bulgaria (HUF 34,2 billion / EUR 107 million), the Croatian operation (HUF 17,4 billion, EUR 54 million), the Ukrainian (HUF 16 billion / EUR 50 million) and Russian subsidiaries (HUF 13.9 billion / EUR 43 million).
In the 2019 1H financial statements, OTP Leasing Romania is presented as part of OTP Bank Romania versus the previous practice of showing it within Foreign Leasing companies, consequently the six months profit contribution of OTP Leasing Romania amounting RON 1.2 million (HUF 81 million) was incorporated into OTP Bank Romania’s 1H P&L statement. At the end of June 2019 the Stage 1+2 loan volumes at OTP Leasing Romania comprised RON 0.34 million (HUF 23 million