București, 1 martie 2019 – OTP Group sărbătorește astăzi 70 de ani de activitate, în timp de subsidiara OTP Bank România marchează 15 ani de prezență pe piața locală și anunță un profit ajustat după impozitare de 55,3 milioane lei (3,9 miliarde HUF), conform raportului publicat la Budapesta, în care rezultatele băncii sunt prezentate consolidat, ajustate în conformitate cu standardele de raportare ale Grupului. Banca a înregistrat un avans al profitului de 25% față de 2017, rezultat din creșterea profitului operațional.
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Press Release
OTP Bank Romania announces the financial results for 2018: a 25% profit advance than in the base period
Bucharest, March 1st, 2019–OTP Groupcelebrates today 70 years of existence, while the Romania subsidiary marks 15 years of presence on the local market and announced an after-tax profit of RON 55.3 million (HUF 3.9 billion)in 2018, according to the report published in Budapest, which presents the consolidated result adjusted in accordance with the Group reporting standards. The bank registered a profit increase of 25% compared to 2017, as a result of a better operational profit.
The performing loan volumes, FX-adjusted, increased by 14%, supported by robust mortgage and SME lending dynamics. The mortgage volumes registered a 9%growth, while SME volumes surged by 33% year over year. Also, the loans accessed by large companies increased by 17%. Total banking assets from lending activity reachedRON 8,37 billion, out of which SMEs generatedRON 1.37 billion. As for annual new loan disbursements, mortgages and SME salesshowed outstanding dynamic, with 56% and +48%. The Romanian’s appetite for deposits grew in 2018, when OTP Bank Romania registered an increase of 29% in deposit volumes compared to 2017. The growth was supported by both retail and corporate inflows. The net loan-to-deposit ratio declined to 125%, from 141.6% last year.
At the same time, the volume of non-performing loans resumed the decline in 2018, dropping byRON 42 million in 2018, versus an increase of RON 28.5 million in 2017. During 2018 RON 603 million problem loans were sold/written off. The DPD90+ ratio declined to 5.1%, with -8.4 pps from 2017. The share of Stage 3 exposures represented 9.0% of total gross loans at the end of 2018.
The annual total risk costwas down toRON 81.6 million, +4% year over year. In the 4th quarter risk costsrepresented RON 46.1 million . The main reason behindthe quarterly higher provisions was that in the course ofthe last quarter the PD and LGD parameters, as wellas the macroeconomic expectations were revised inthe IFRS 9 provisioning models.
The operating profitimproved by 13% in 2018as a result of higher total income, whileoperating expenses went higher, both surging by 12%. The annual net interest income improved by 17% supported by the growing performing loan volumes, while thenet fee and commission income expanded by 15%, mainly as a result of higher deposit, transaction and card-related income. Regarding the operating expenses, the growth was induced by wage inflation (in 2018 employers’ average wage costs went up by more than 8% in the financial sector) and the average employees growth (+7%) reasoned by strengthening business activity.
According to local regulation, the Bank’s standalone total assets posted RON 11.1billion, and the net profit after tax of RON 29million. The capital adequacy ratio of the bank significantly increased to 18.03%, from 16.84%. compared to the previous quarter.
OTP Group has registered in2018 an adjusted after-tax profit of HUF 318.3 billion (close to EUR 1 billion), with 13% growth from 2017. Profit contribution from OTP Core – Hungary (HUF 180 billion, EUR 566 million), DSK Bank in Bulgaria (HUF 47.3 billion, EUR 148 million), the Croatian operation (HUF 25 billion, EUR 78 million), the Ukrainian (HUF 24.4 billion, EUR 76 million) and Russian subsidiaries (HUF 16.4 billion, EUR 51 million) was the most meaningful.
The full results of OTP Bank Romaniaare presented in the table below.
The full results of OTP Group are available in the report published by OTP Bank Plc: https://www.otpbank.hu/static/portal/sw/file/190228_OTP_20184Q_e_final.pdf
OTP Bank Romania, subsidiary of OTP Group, is an integrated and self-funded provider of financial services. With an approach based on responsibility, commitment and professionalism, OTP Bank Romania understands its clients’ needs and the current market context, being a reliable partner in the area of financial services. The bank ranks 9th by assets in the top of Romanian banking players, as of September 2018.
OTP Groupcelebrates on 1st of March 2019 70 years of existence, while the Romania subsidiary marks 15 years of presence on the local market. By today, OTP Group has grown into a dominant player in the Central-Eastern Europe market and is regarded as a major banking group even on European scale. The community of around 36 thousand OTP staff serves over 18.5 million customers in 9 countries on a daily basis.
