OTP Group has announced the financial results for the first quarter of 2019. According to the report published in Budapest, which presents the consolidated results adjusted in accordance with the Group´s standards, OTP Bank Romania has registered an after -tax profit of RON 18,3 million (HUF 1,23 billion). The quarterly profit level is 19% under the result registered in the first quarter of 2018.
The Bank reported a 29% increase for operating profit y-o-y in the first trimester of the year, following the increase of 29% in total income and an increase of 28% in operating expenses.
The net interest income improved by 17% y-o-y. The growth has been supported by a 15% increase in performing loans y-o-y. Compared to the previous quarter, this indicator has dropped by 5% following an increase in the volume of loans granted with lower margins and the increase of financing costs from clients. Regarding the operating expenses, the 5% growth in the first quarter has was fueled by wage inflation (considering that in the first two months of 2019 the average pay in the financial sector grew by 11%) and the average employees’ growth (+10%) reasoned by strengthening business activity.
The performing loan volumes, FX-adjusted, increased by 15%, supported by robust mortgage, SME and corporate lending dynamics. In the retail segment, which has grown by 4% y-o-y, mortgage and SME loans have supported growing demand, while corporate lending reported a +13% y-o-y for the first quarter. At the end of March 2019, OBR’s total assets reached RON 11,48 billion lei.
FX-adjusted deposit volumes increased by 21% y-o-y and by 8% q-o-q. The positive evolution was supported, with a considerable advance of 30%, by retail inflows.
According to local regulations, the Bank´s standalone total assets posted RON 11,37 billion, and the net profit after tax of RON 8,2 million. The capital adequacy ratio of the bank decreased to 17,18%, from 18,03% compared to the previous quarter (data for Q4 2018 are depicted as to the unaudited annual financial statements).
OTP Group has registered in the first quarter of 2019 an adjusted after-tax profit of HUF 72,58 billion (EUR 228,2 million), with a y-o-y growth of 12%. Profit contribution of OTP Core – Hungary (HUF 39,9 billion / EUR 125,3 million), DSK Bank in Bulgaria (HUF 17,3 billion / EUR 54,5 million), the Croatian operation (HUF 8,2 billion, EUR 25,9 million), the Ukrainian (HUF 8,3 billion / EUR 26 million) and Russian subsidiaries (HUF 6,6 billion / EUR 20.9 million).