BankingData
OTP Group lifts third-quarter profit 16 per cent to HUF 355 billion
Return on equity reached 24.7 per cent and profit beat the 14-analyst consensus by 8 per cent as income tax came in lower.
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OTP Group, the Budapest-listed banking group, made a consolidated profit after tax of HUF 355.0 billion in the third quarter of 2026, up 16 per cent on the second quarter, the bank said in its report on 11 November.
The figure was 7 per cent higher than a year earlier, and return on equity rose to 24.7 per cent from 22.2 per cent in the second quarter. The report shows no adjustments for the quarter, so reported and adjusted profit are the same. On a normalised basis, which spreads over the year the special items the bank booked in one sum in the first quarter, third-quarter profit was HUF 306 billion.
The result beat the analysts' forecast. OTP's own comparison with consensus, compiled on 6 November from 14 analysts, puts the expected profit after tax at HUF 329.2 billion, 8 per cent below the outcome. Profit before tax of HUF 377.0 billion fell 4 per cent short of the HUF 394.2 billion consensus; the gap closed lower down, where income tax of HUF 22.0 billion compared with the HUF 65.0 billion analysts had pencilled in.
Risk costs were the biggest miss against the bank. They reached HUF 79.5 billion against a consensus of HUF 61.0 billion, 30 per cent higher. Net interest income of HUF 554.8 billion was 1 per cent above the forecast.
Net fees and commissions were HUF 150.3 billion in the quarter, and the cost to income ratio was 40.6 per cent, the bank's investor relations page shows.
Over nine months, reported profit after tax was HUF 838 billion, down 1 per cent on a year earlier, with a return on equity of 19.9 per cent. Normalised nine-month profit was HUF 887 billion and normalised return on equity 21.1 per cent. Performing loans grew 12 per cent in the nine months on a currency-adjusted basis, 4 per cent of it in the third quarter, and deposits rose 8 per cent since the start of the year on the same basis.
OTP Core, the Hungarian core business, was the largest contributor to nine-month adjusted profit after tax, at HUF 194.3 billion, followed by DSK Bank in Bulgaria at HUF 163.3 billion and the Russian operation at HUF 157.8 billion. Uzbekistan contributed HUF 49.7 billion, up 50 per cent on a year earlier, with a return on equity of 26.2 per cent. Slovenia added HUF 48.2 billion and Serbia HUF 47.4 billion.
The common equity tier 1 ratio stood at 17.8 per cent at the end of September, 0.3 percentage points lower than at the start of the year. OTP Bank had bought back HUF 60 billion of its own shares by 23 July and received authorisation for a further HUF 50 billion on 9 October. The bank expects the full-year windfall tax, after deductions, to be HUF 114.8 billion.
Management does not consider it necessary to revise its guidance for 2026, the report says. The quarter adds to this month's third-quarter results from regional banks, from PKO Bank Polski to Lion Finance Group, and comes after the Hungarian central bank held its base rate at 5.50 per cent in October.