Bulletin: OTP Bank's Strong Results In 2023 Reflect Its Resiliency Despite A Dip In The Fourth Quarter

FRANKFURT (S&P Global Ratings) March 8, 2024--S&P Global Ratings today said that OTP Bank PLC's (BBB-/Stable/A-3) strong earnings in 2023 confirmed the bank's resilience amid the economic recession in Hungary and very high inflation in many of its countries of operations. OTP reported a Hungarian forint (HUF) 990 billion (approximately €2.5 billion) 2023 profit after tax, up 185% from the year before. Reported return on equity was 27%, up from 11% in 2022. The increased profitability largely followed the phase-out of the material one-offs (HUF245 billion [€622 million]) related to the Russia-Ukraine war, which dented 2022 results. Main positive one-offs in 2023 related to the badwill impact booked in relation to the Slovenian and Uzbek acquisitions, but the volume of

...FRANKFURT (S&P Global Ratings) March 8, 2024--S&P Global Ratings today said that OTP Bank PLC's (###-/Stable/A-3) strong earnings in 2023 confirmed the bank's resilience amid the economic recession in Hungary and very high inflation in many of its countries of operations. OTP reported a Hungarian forint (HUF) 990 billion (approximately 2.5 billion) 2023 profit after tax, up 185% from the year before. Reported return on equity was 27%, up from 11% in 2022. The increased profitability largely followed the phase-out of the material one-offs (HUF245 billion [622 million]) related to the Russia-Ukraine war, which dented 2022 results. Main positive one-offs in 2023 related to the badwill impact booked in relation to the Slovenian and Uzbek acquisitions, but the volume of net one-offs was low at HUF18 billion (45 million), with main items offsetting each other (HUF63 billion special banking tax versus HUF65 billion effects of acquisitions). The group's two large acquisitions in 2023--the purchase...

Bulletin