Leading market position in Hungary and Bulgaria, where it has solid business lines. Sound risk-adjusted margins and diversified loan portfolio by geography and assets. Highly granular funding base and strong liquidity cushion. Potential execution risks from the recent and expected acquisitions in the Central and Eastern Europe (CEE), Commonwealth of Independent States (CIS), and Southeast Europe (SEE) regions. Elevated, but declining, nonperforming assets (NPAs). Large holdings of home sovereign debt securities that carry repricing risks. The stable outlook on OTP Bank PLC (OTP) reflects the sound economic and industry risk environment in Hungary and stabilization of the risks in foreign operations. S&P Global Ratings expects the gradual recovery of operational performance to continue, supporting its forecast that OTP will maintain
