15.4 C
București
vineri, mai 20, 2022

Analysis and Trends- OTP Bank Romania announces the financial results for the first quarter of 2022 – Brief

3 min read (textul complet), articol clasificat de Robotul Minerva ca: General

Creați-vă propriul

dashboard de știri

informația - cheie, 24/7

100+

FLUXURI

Free

Parcurgi informația mai rapid!

Acoperi top 100 surse externe!

Publicat de

Articole din aceeași sursa

- Advertisement -spot_img

Sumarizare automata

According to the report published in Budapest, which presents the consolidated results adjusted in accordance with the Group´s standards, OTP Bank Romania has registered a RON 24 million loss during the first quarter of 2022, predominantly shaped by risk costs.

Operating profit in Q1 2022 reached RON 35 million, several times higher than in the first quarter of 2021, but 4% lower than Q4 2021, due to an increase in operating expenses linked to the yearly payment of contributions to deposit insurance fund and resolution fund, booked in full in Q1 2022.

On comparable terms (w/o the contributions), the operating profit in Q1 2022 grew by more than 70% compared to Q4 2021.

OTP Group last week has announced the financial results for the first three months of 2022. According to the report published in Budapest, which presents the consolidated results adjusted in accordance with the Group´s standards, OTP Bank Romania has registered a RON 24 million loss during the first quarter of 2022, predominantly shaped by risk costs.

Operating profit in Q1 2022 reached RON 35 million, several times higher than in the first quarter of 2021, but 4% lower than Q4 2021, due to an increase in operating expenses linked to the yearly payment of contributions to deposit insurance fund and resolution fund, booked in full in Q1 2022. On comparable terms (w/o the contributions), the operating profit in Q1 2022 grew by more than 70% compared to Q4 2021. Most of the cost increase stemmed from the Apollo growth strategy launched in 2019 and the developments and investments carried on during last year. This was also partly the result of the increase in personnel expenses following the 3% y-o-y growth in the average headcount and wage hikes. Within other expenses, the contribution to the resolution fund grew at the strongest rate, RON 7 million y-o-y (+HUF 0.5 billion y-o-y).

“We are now entering the fourth year of our local development strategy, and the quarterly results truly depict the journey we take through our investment plans and transformational programs. The operational change and growth, while we transitioned to the new working model, Agile, have brought us closer to our customers and contributed to the increase of interactions and operations. As it follows, in the first three months we have marked steady growth on our loans and deposits portfolios, as it was the case for the interest income. This could not have been achieved without considerable expenditure, which for the moment directly impacts quarterly profitability, and without increasing our teams and welcoming more and more local talents”, said Gyula Fatér, CEO OTP Bank Romania.

The net interest income increased by 31%, to a total of RON 147 million. The quarterly dynamics benefited from a vigorous growth in performing (Stage 1+2) loan volumes (+4% q-o-q), and the 19 bps q-o-q improvement in net interest margin. The three-month interbank lending rate, which is the benchmark for corporate loans, remained on an increasing trajectory, so the average interest on the corporate loan portfolio grew further in the first quarter.

In the first quarter, the total risk cost amounted to RON -58 million. The additional provisions for impairment of stage 2 and 3 loans generated a risk cost of RON 25 million. The provisions for other risks, amounting to RON 33 million in Q1 2022, were influenced by the establishment of an extraordinary provision for an operational risk event, amounting to RON 28 million.

The performing loan volumes increased by 22% y-o-y in the first quarter of 2022, being supported firstly by the corporate loans, while mortgages and cash loans have increased by + 6%, respectively +12%.

FX-adjusted deposit volumes increased by 8% compared to the first three months of last year, with a dynamic fuelled mainly by corporate placements (+90%), while the retail deposits have decreased by 21%. Despite the successful deposit-taking activity, the net loan-to-deposit ratio grew by 13 pps y-o-y, to 124% (+6 pps q-o-q).

According to local reporting standards, the bank´s assets reached the level of RON 18.5 billion, increasing by 18% compared to March 2021.

The bank’s capital adequacy ratio reached the level of 20.54% (-2.14 pp y-o-y) on the background of assets growth.

In the first three months of 2022, OTP Group has registered an adjusted after-tax profit of HUF 88.6 billion (RON 1.203 million) while the consolidated accounting loss was HUF -33.4 billion (RON -454 million).

Profit contribution of OTP Core – Hungary (HUF 94 billion / RON 1.277 million), DSK Bank in Bulgaria (HUF 21 billion / RON 286 million), the Croatian operation (HUF 11 billion, RON 150 million), , the Serbian (HUF 10.8 billion / RON 147million), the Ukrainian (HUF -34.4  billion / RON -467 million),  the Russian (HUF -27.2 billion / RON -370 million), the Montenegro operation (HUF -1.2 billion / RON -17 million), the Moldavian subsidiary (HUF -0.5 billion / RON -7million) and Albanian subsidiary (HUF 2.2 billion / RON 31 million).

The full results of OTP Bank Romania are presented in the table below.

Main components of P&L account
in RON mn
1Q 2021 4Q 2021 2021 1Q 2022 Q-o-Q Y-o-Y
Adjusted profit after tax 7 44 58 -24 -154% -434%
Income tax -5 -7 -20 0 -100% -100%
Profit before income tax 12 51 78 -24 -147% -298%
Operating profit 8 36 123 35 -4% 318%
Total income 148 167 641 191 14% 29%
Net interest income 112 135 498 147 9% 31%
Net fees and commissions 13 16 57 16 -2% 17%
Other net non-interest income 22 17 86 28 68% 29%
Operating expenses -139 -132 -518 -156 19% 12%
Total provisions 4 15 -46 -58 -492%  
Provision for impairment on loan losses -19 -10 -94 -25 149% 30%
Other provision 23 25 48 -33 -234% -245%
Main components of balance sheet
closing balances in RON mn
1Q 2021 4Q 2021 2021 1Q 2022 Q-o-Q Y-o-Y
Total assets 16,340 19,297 19,297 19,218 0% 18%
Gross customer loans 11,894 13,887 13,887 14,390 4% 21%
Gross customer loans (FX-adjusted) 11,943 13,888 13,888 14,390 4% 20%
Stage 1+2 customer loans (FX-adjusted) 11,207 13,099 13,099 13,629 4% 22%
Retail loans 7,672 6,717 6,717 7,009 4% -9%
Corporate loans 2,991 5,758 5,758 5,971 4% 100%
Leasing 544 624 624 649 4% 19%
Allowances for possible loan losses -642 -735 -735 -739 1% 15%
Allowances for possible loan losses (FX-adjusted) -648 -735 -735 -739 0% 14%
Deposits from customers 10,111 11,142 11,142 10,972 -2% 9%
Deposits from customers (FX-adjusted) 10,137 11,145 11,145 10,972 -2% 8%
Retail deposits 7,469 5,860 5,860 5,902 1% -21%
Corporate deposits 2,668 5,284 5,284 5,070 -4% 90%
Liabilities to credit institutions 3,709 5,399 5,399 5,499 2% 48%
Total shareholders’ equity 1,959 2,216 2,216 2,190 -1% 12%
Loan Quality 1Q 2021 4Q 2021 2021 1Q 2022 Q-o-Q Y-o-Y
Stage 1 loan volume under IFRS 9 (in RON million) 9,801 11,085 11,085 11,598 5% 18%
Stage 1 loans under IFRS 9/gross customer loans 82.4% 79.8% 79.8% 80.6% 0.8%p -1.8%p
Own coverage of Stage 1 loans under IFRS 9 1.0% 1.0% 1.0% 1.0% 0.0%p 0.0%p
Stage 2 loan volume under IFRS 9 (in RON million) 1,365 2,012 2,012 2,031 1% 49%
Stage 2 loans under IFRS 9/gross customer loans 11.5% 14.5% 14.5% 14.1% -0.4%p 2.6%p
Own coverage of Stage 2 loans under IFRS 9 9.9% 8.4% 8.4% 8.8% 0.4%p -1.1%p
Stage 3 loan volume under IFRS 9 (in RON million) 728 789 789 762 -3% 5%
Stage 3 loans under IFRS 9/gross customer loans 6.1% 5.7% 5.7% 5.3% -0.4%p -0.8%p
Own coverage of Stage 3 loans under IFRS 9 56.0% 57.5% 57.5% 58.6% 1.1%p 2.6%p
Provision for impairment on loan losses/average gross loans 0.67% 0.29% 0.75% 0.72% 0.43% 0.05%
90+ days past due loan volume (in RON million) 477 482 482 478 -1% 0%
90+ days past due loans/gross customer loans 4.0% 3.5% 3.5% 3.3% -0.2%p -0.7%p
Performance Indicators 1Q 2021 4Q 2021 2021 1Q 2022 Q-o-Q Y-o-Y
ROA 0.2% 1.0% 0.3% -0.5% -1.5%p -0.7%p
ROE 1.7% 8.7% 3.0% -4.4% -13.1%p -6.1%p
Total income margin 3.75% 3.62% 3.75% 4.02% 0.41%p 0.27%p
Net interest margin 2.86% 2.91% 2.92% 3.10% 0.19%p 0.25%p
Operating costs / Average assets 3.54% 2.84% 3.03% 3.30% 0.46%p -0.24%p
Cost/income ratio 94.4% 78.6% 80.8% 81.9% 3.3%p -12.5%p
Net loans to deposits (FX-adjusted) 111% 118% 118% 124% 6%p 13%p
FX rates (in HUF) 1Q 2021 4Q 2021 2021 1Q 2022 Q-o-Q Y-o-Y
HUF/RON (closing) 73.8 74.6 74.6 74.7 0% 1%
HUF/RON (average) 74.1 73.6 72.8 73.7 0% 0%

 

The full report published by OTP Bank Plc. is available here.

 

.
.
.
0 .s

Above you will find a visual representation of the article’s content, an automatic classification and a summary of it! Collecting data this way aims to promote and facilitate the access to information in compliance with intellectual property rights, and according to the terms and conditions of the source. (www.nineoclock.ro).

Read the full article here !

spot_img

Fluxuri de știri

Articole recomandate

- Advertisement -spot_img

Ultimele articole

Alege-ți fluxurile de informații!

Gratis!

 + Promovează-ți compania și oferta sa!