Written by Christina Vontin
Market leader OTP Group posted a consolidated adjusted after-tax profit of 256 billion forints (approximately 700 million euros) in the second quarter, down 13% year-on-year.
This development was significantly influenced by two one-off effects. A legislative amendment to the interest rate cap resulted in an additional charge of 30.4 billion forints, while the revaluation of subsidised housing loans and related hedging transactions reduced net profit by 39.6 billion forints. The group’s first-half result, adjusted for these special items, fell 2% to 580 billion forints.
Operating profit grew 1% year-on-year in the first half to 878 billion forints. At the same time, total revenues rose 5% to 1,512 billion forints, with net interest income recording a gain of 13% to 1,068 billion forints. Net fee and commission income remained flat at 290 billion forints compared to the prior year. At the end of the quarter, the group’s total assets stood at 46,666 billion forints (+3%). The net interest margin reached 4.61% in the first six months.
For the remainder of the financial year, management projects a loan portfolio growth rate of approximately 15%, which would be in line with the prior year level. The cost-to-income ratio is expected to come in slightly above last year’s figure of 41.7%. The annual return on equity, however, could fall short of the 21.6% recorded in 2025.
Artificial intelligence was used for the translation of parts of the original German text.