OTP BANK 2006 third quarter results

Transkript

1 OTP BANK 26 third quarter results INVESTOR PRESENTATION Presented by: Dr. Zoltán Spéder, CFO November, 26

2 Macroeconomic environment and financial intermediary Financial performance (consolidated, IFRS) Market position in Hungary (HAR) OTP Subsidiaries in the Region

3 Main macroeconomic indicators in Hungary F 27 F 28 F 29 F 21 F Real GDP 3.4% 5.2% 4.1% 3.9% 2.5% 3.1% 4.2% 4.1% Final household consumption 7.7% 3.6% 1.4% 2.5% -2.3%.7% 4.2% 4.8% Public consumption 7.6%.7% -.9% 1.2% % Investment 2.9% %.7% % 7.5% 7.7% Exports 6.1% 15.8% 1.8% % 1.2% 1.5% 1.1% Imports 9.3% 13.5% 6.5% 12.8% 1.4% 9.5% 1.6% 1. Budget deficit as a % of GDP -7.2% -6.5% -7.8% -1.1% -6.5% -4.6% % Current Account Balance as a % of GDP -8.7% -8.6% -7.3% -8.9% % -5.6% -6.5% Net nominal wages % 2.9% 3.3% % Net real wages 8.9% % 2.4% -3.7% -.4% 5.3% 6.3% Unemployment 5.8% 5.9% 7.1% 7.4% 8.1% % 5.8% Inflation (CPI), average 4.7% 6.8% 3.7% 3.8% 6.8% 3.9% 3.4% 3.1% NBH base rate (average) % % 8.2% 7.9% 6.31% 5.91% NBH base rate (end of period) % 7.25% % EUR/HUF (average) EUR/HUF (end of period) OTP Bank s own estimation (November, 26) 3

4 Base rate increased by 2 bps to 8. YTD 26 Interest rates 9% 2-Oct-6, 7.75% % 7.77% 8% 6-Jun-6, 6.78% 7% 26-Oct-6, Sep-6, 8.35% 29-Sep-6, 8. 6% 29-Sep-6, Oct-5, Jun-6, Sep-6, 7.75% 5% Sep-5 Oct-5 Nov-5 Dec-5 Jan-6 Feb-6 Mar-6 Apr-6 May-6 Jun-6 Jul-6 Aug-6 Sep-6 Oct-6 M3 Y1 Y1 Base rate Exchange rates 29 6-Jul-6, Oct-6, Sep-6, Oct-5, May-6, Oct-6, Feb-6, Changes of base rate (ytd) + 4 bp - 3 bp - 35 bp + 2 bp Base rate in CEE-Countries HU 8. CZ 2.5 SK 4.75% PL 4. BU 3.19% CR 4.5 RO 8.75% RU 11. UA 8.5 SE 17.5 MN 4.25% 24 Sep-5 Oct-5 Nov-5 Dec-5 Jan-6 Feb-6 Mar-6 Apr-6 May-6 Jun-6 Jul-6 Aug-6 Sep-6 Oct-6 4

5 Main macroeconomic indicators of countries of foreign subsidiaries 8% Real GDP 13% Budget deficit as a % of GDP 7% 9% 6% 5% 5% 1% 4% -3% 3% -7% 2% % Slovakia Bulgaria Serbia Ukraine Russia Romania Croatia Hungary Russia Serbia Bulgaria Ukraine Romania Slovakia Croatia Hungary 18% 15% 12% 9% 6% 3% Inflation (CPI), average % 18% 15% 12% 9% 6% 3% Key interest rate, end of period Ukraine Serbia Russia Romania Bulgaria Hungary Slovakia Croatia Russia Ukraine Romania Serbia* Hungary Croatia Bulgaria Slovakia *In September 26 repo interest rate for 2 weeks became the base rate in case of Serbia 5

6 The banking market has low penetration and promising growth potential in the countries of the subsidiaries Total assets to GDP +3.7% +6.6% +2.8% +3.2% +7.6% % +4.8% CAGR Total deposits to GDP +1.9% +4.6% +2.9% +.9% +7.6% +12.4% +4.6% +9.5% CAGR Croatia Hungary Slovakia Bulgaria Ukraine Serbia Romania Russia Slovakia Bulgaria Croatia Hungary Ukraine Serbia Romania Russia 12 Total loans to GDP +7.9% 75% Expected growth of loans % +6.6% +8.6% +9.2% % % +11.8% CAGR 15% Croatia Slovakia Hungary Bulgaria Ukraine Serbia Romania Russia Russia Ukraine Bulgaria Romania Serbia Slovakia Hungary Croatia 6

8 OTP Bank realised HUF 53.6 billion consolidated profit after tax in 3Q 26 Financial highlights of OTP Group (consolidated, IFRS) 25 3Q 26 2Q 26 3Q Q-o-Q Y-o-Y 25 9M 26 9M Y-o-Y Total assets () 4,91.4 5, , % 25.7% 4,91.4 6, % Total loans and advances () 3,89. 3,69.6 3, % 24.5% 3,89. 3, % Total deposits () 3,239. 3, , % 15.6% 3,239. 3, % Gross loan/deposit ratio 95.4% 99.3% 12.8% 3.4% 7.4% 95.4% 12.8% 7.4% Shareholders' equity () % 24.2% % Net interest income () % 42.9% % Net interest income w/o swaps ( % 7.9% 13.8% Net interest margin before provision 6.23% 5.23% 7.18% 1.95%.95% 6.38% 5.88% -.5 Net interest margin w/o swaps 6.32% % % -.7 Pre-tax profits () % 28.3% After tax profits () % 3.8% % Total income () % Operating expenses () % 1.3% % Cost to income ratio 56.7% 55.9% 53.7% -2.2% -3.1% 55.1% 54.4% -.8% Return on Assets 3.41% 3.34% %.19% 3.45% 3.43% -.2% Return on Equity 32.8% 32.9% 34.3% 1.4% 1.5% 32.7% 32.6% -.1% EPS base (HUF) % 33.2% % EPS fully diluted (HUF) % 33.5% % 8

9 Consolidated assets grew by 7.7% in 3Q 26 and by 25.7% on a yearly bases Assets 5, , , ,91.4 2, , ,36.4 3, , ,723.7 Other assets Investment securities Loans, net Trading securities Interbank Liabilities 6, , , , , ,239. 3, , , ,743.3 Equity Other liabilities Issued securities Customer deposits 3-Sep-5 31-Dec-5 31-Mar-6 3-Jun-6 3-Sep-6 Cash 3-Sep-5 31-Dec-5 31-Mar-6 3-Jun-6 3-Sep-6 Interbank Balance Sheet indicators 95.4% 96.2% 97.1% 99.3% 12.8% % 64.6% 64.8% 62.3% 62.9% 63.2% 62.8% 64.3% 6.6% 3-Sep-5 31-Dec-5 31-Mar-6 3-Jun-6 3-Sep-6 Gross loans to deposits Gross loans to total assets Deposits to total assets 1 8% 6% 4% 2% 4.6% 3.6% 2.9% Quarterly growth of B/S items 6.7% 6.2% 5.8% 3.7% 2.6% 4.4% % 5.3% 4.2%.8% 7.7% 3-Sep-5 31-Dec-5 31-Mar-6 3-Jun-6 3-Sep-6 Gross loans Deposits Total assets 9

10 Consolidated gross loans increased by 4.2% Q/Q and by 24.5% Y/Y, while deposits by.8% and 15.6% respectively Q/Q: +4.2% Y/Y: +24.5% 3, ,163.2 Gross loans by business lines 3, , , , , , , , ,67.2 1, , , , Q 25 4Q 25 1Q 26 2Q 26 3Q 26 Change Q/Q +3.5% +3.2% +2.2% +3.8% Corporate Municipal Housing Consumer ,89. Gross loans by countries 3, , ,69.6 3, , , ,586. 2,722. 2, Sep-5 31-Dec-5 31-Mar-6 3-Jun-6 3-Sep-6 Hungary Bulgaria Croatia Slovakia Romania Serbia Change Q/Q +17.3% +47.3% +.9% -.4% +5.1% (*+5.2%) +3.7% ,237.7 Deposits by business lines 3, , ,42.5 2, ,58.8 3, , ,74.1 2, Q 25 4Q 25 1Q 26 2Q 26 3Q 26 Corporate Municipal Retail Q/Q: +.8% Y/Y: +15.6% Change Q/Q -4.8% , ,237.7 Deposits by countries 3, , , , , , , ,63.1 2, , Jun-5 3-Sep-5 31-Dec-5 31-Mar-6 3-Jun-6 3-Sep-6 Change Q/Q +6.1% +17.1% +4.4% +4.6% +1.4% -.2% Hungary Bulgaria Croatia Slovakia Romania Serbia * Adjusted growth rate, including loans booked outside DSK balance sheet. 1

11 NPL ratio did not change significantly and stood at 4.3% on September 3, 26 Volume of qualified loans Qualified and NPL ratio % 12% 8% 4% 13.5% 13.7% 14.1% 12.8% 12.5% 3.8% 3.6% 3.9% 4.2% 4.3% 9.7% 9.1% 8.6% 9.5% 9.8% Jun To be watched Below average Doubtful Bad Jun To be watched NPL 45 Coverage 5 1.2% 1.14% Cost of risk % 24.1% 24.8% 21.8% Jun Qualified loans Provisions Coverage %.6%.4%.2%..97%.81%.7.38% 3Q 25 4Q 25 1Q 26 2Q 26 3Q 26 11

12 Capital adequacy ratio of OTP Bank stood at 14.54% on September 3, 26 Consolidated shareholder s equity Non-consolidated shareholders equity Q/Q: +8.7% Y/Y: +24.2% Q/Q: +1.2% Y/Y: +13.6% Sep-5 31-Dec-5 31-Mar-6 3-Jun-6 3-Sep-6 3-Sep-5 31-Dec-5 31-Mar-6 3-Jun-6 3-Sep % 1 5% -5% Capital adequacy of OTP Group (aggregated, HAR)* 13.53% 13.11% 13.32% 13.12%.7% 15.35% 2.15% 13.99% 13.46% 13.42% 13.5% % -.36% Sep-5 31-Dec-5 31-Mar-6 3-Jun-6 3-Sep-6 Tier 1 Tier 2 Capital adequacy of OTP Bank (HAR)** 11.63% 1.39% * According to Hungarian regulation, in case of aggregated capital adequacy calculation, goodwill must be deducted from Tier 2 capital ** Deductions of investments in financial institutions and limit breaches are deducted from Tier 1 and Tier 2 capital proportionally 2 15% 1 5% 1.55% 1.92% 1.74% 1.29% 1.28% 1.22% 1.24% 9.26% 9.64% 9.51% 14.54% 3.37% 11.17% 3-Sep-5 31-Dec-5 31-Mar-6 3-Jun-6 3-Sep-6 Tier 1 Tier 2 12

13 Net interest margin increased by 195 bps, without swaps decreased by 4 bps compared to the last quarter Net interest income Net interest margin Q/Q: +2.5% (w/o swap: +1.4%) Y/Y: -4.9% (w/o swap: +12.1%) % % 6.32% 6.3% 6.32% % Q 25 4Q 25 1Q 26 2Q 26 3Q 26 Net interest income w/o swap Net swap interest result 4.5% 5.35% % 3Q 25 4Q 25 1Q 26 2Q 26 3Q 26 Net interest margin NIM w/o swap Total result on FX swaps, non-consolidated Q 25 4Q 25 1Q 26 2Q 26 3Q 26 Bps Quarterly changes of net interest margin Q 25 4Q 25 1Q 26 2Q 26 3Q 26 Interest result FX gain Total FX-swap result Net interest margin NIM w/o swap 13

14 Cost income ratio decreased by 22 bps to 53.7% in 2Q Non interest income Q 25 4Q 25 1Q 26 2Q 26 3Q 26 Q/Q: -2.6% Y/Y: -11. Other Insurance Dividend Real estate trx, net Securities, net Forex, net Fee and comm. i % 49.7% 56.2% 51.8% Cost/income ratio 53.5% 47.1% 55.9% 5.9% Q/Q: -22 bp Y/Y: -31 bp 53.7% 47.6% 3Q 25 4Q 25 1Q 26 2Q 26 3Q 26 with insurance without insurance Non interest expenses Q/Q: +8.6% Y/Y: +13.2% Other expenses Insurance expenses Depreciation and amortization Personnel expenses % Non int. income/total income 41.3% 32.4% 47.5% 38.7% 49.4% 42.1% 34.7% 24.5% Q 25 4Q 25 1Q 26 2Q 26 3Q 26 Fee and commission expenses % 2.6% % 17.5% 3Q 25 4Q 25 1Q 26 2Q 26 3Q 26 Total Without insurance Net fees 14

15 Net fees and commissions increased by 3. Q/Q and by 15.6% Y/Y Fee and commission income Fee and commission expenses Q/Q: +7. Y/Y: +24.6% Q 25 4Q 25 1Q 26 2Q 26 3Q Q/Q: -% Y/Y: +55.5% Q 25 4Q 25 1Q 26 2Q 26 3Q Loans Deposits Card business Securities Other fees Loans Deposits Card business Securities Other fees Net fees and commission Net fees to average assets Q/Q: +3. Y/Y: +15.6% Change Q/Q (Y/Y) -18.8% (-145.2%) -46.8% (+9.5%) +5. (+2.9%) +36.3% (+54.4%) 2.5% % 2.6% 2.21% 2.4% 1.98% 1.92% Q 25 4Q 25 1Q 26 2Q 26 3Q (+78.7%) 1. 3Q 25 4Q 25 1Q 26 2Q 26 3Q 26 Loans Deposits Card business Securities Other fees 15

16 Personnel expenses were higher by 5.8%, while other non-interest expenses grew by 3.7% on a quarterly base Personnel expenses Other non-interest expenses Q/Q: +5.8% Y/Y: +14.7% Q 24 3Q 25 1Q 26 2Q 26 3Q 26 IFRS 2 effect Personell expenses w/o IFRS Q/Q: +3.7% Y/Y: +13.3% Q 25 4Q 25 1Q 26 2Q 26 3Q 26 Special banking tax Other expenses w/o special banking tax Depreciation Net insurance income Q/Q: +8.1% Y/Y: +26.4% Q/Q: -8.1% Y/Y: +6.9% Q 25 4Q 25 1Q 26 2Q 26 3Q 26 3Q 25 4Q 25 1Q 26 2Q 26 3Q 26 16

17 Consolidated ROE grew to 34.3%, ROA to 3.6, respectively in 3Q 26 Profit after tax EPS, diluted Q/Q: +14.7% Y/Y: +3.8% HUF Q 25 4Q 25 1Q 26 2Q 26 3Q 26 3Q 25 4Q 25 1Q 26 2Q 26 3Q 26 Return on average equity (ROE) Return on average assets (ROA) 5 5% % 3.5% % 34.3% 4% 3% 3.41% 3.23% 3.47% 3.34% % 1 1% 3Q 25 4Q 25 1Q 26 2Q 26 3Q 26 3Q 25 4Q 25 1Q 26 2Q 26 3Q 26 17

18 Within domestic subsidiaries OTP Garancia Insurance reached HUF 1.6 bn; OTP Fund Management HUF 1.2 bn profit after tax; Merkantil Group HUF.9 bn profit after tax in 3Q 26 OTP Bank (non-cons) OTP Mortgage Bank Merkantil Group OTP Garancia Insurance OTP Fund Management 26 3Q Change 26 3Q Change 26 3Q Change 26 3Q Change 26 3Q Change Main balance sheet items, Q-o-Q Y-o-Y Q-o-Q Y-o-Y Q-o-Q Y-o-Y Q-o-Q Y-o-Y Q-o-Q Y-o-Y Total assets 4, % 21.9% 1, % 29.3% % 46.5% % 19.1% % 2. Shareholders' equity % 13.6% % 28.3% % 34.1% % -12.4% % 8. Main P&L items, HUF million Gross loans Gross loans Gross loans Insurance reserves Assets under management 1, % % % 36.2% % 34. 1, % 29.2% Net interest income 66, % 53.6% 12, % 1.9% 6, % 42.8% 2, % 6.5% Non-interest income 36, % -19.3% % -19.8% % % 23, % -5.2% 2, % -2.4% Premium income 22, % 9.2% Non-interest expenses 46, % 12.5% 13, % -31.4% 4,34-6.2% 59.4% 23, % -2.4% 1, % -11. Insurance expenses 18,3 26.9% -6.4% Net insurance result 4,26-5.5% 331.7% Profit after tax 43, % 26.8% -1, % -54.3% % 1, % 1, % 8. Added value* 15, % 7.4% 2,66-5.3% -5.4% Total income 98, % 14.7% 3,19 3.7% % 5, % 19.1% 24, % 1,66 2.9% 13.5% Operating expenses 41, % 4, % 3, % 89.3% 22, % -3.8% % 4.1% Cost/income ratio* 42.4% -4.6% -2.3% 14.5% 63.4% 176.6% 55.8% 8.2% 2.7% 93.5% -2.5% -5.2% 16.4% -1.1% 3.1% Net Interest Margin 6.6% 2.7% 1.3% 4.4%.7% -.6% % -.3% 4.7% -2.9% 1.1% ROA 4.35% 1.2%.14% -.52% -.37%.9 1.7% -1.44% -1.42% 3.52% -2.56% -.89% 39.71% -3.66% -5.7% ROE 34.9% 7.3% 3.8% -14.5% -1.5% 23.4% 13.3% -17.2% -15.4% 32.6% -22.2% 1.5% 49.8% -4.6%. Market share, % Total assets 17.9%.5% -.2% 5.2%.5%.2%.9%.1%.2% Retail loans 12.3%.1% -.9% 19.6%.1% -3.5% 3..2%.8% Premium income 1.1% -.1% -2.3% Investment funds 26.4% -8.6% -14.4% * Added value: Profit before tax + fees paid to OTP Bank 18

20 Despite losing market share in some important segments, OTP Group still maintains its leading position on the Hungarian market Market share ( ) Change Q-Q (Y-Y) Market share ( ) Q-Q Change (Y-Y) Total assets 24.4% +.9%p (+.1%p) Total deposits 24.4% -.7%p (-2.5%p) Total loans 2.6% -.1%p (-.8%p) Retail deposits 32.6% -.7%p (-2.2%p) Housing loans 42.5% -1.4%p (-4.9%p) Corporate deposits 1.2% -.4%p (-.7%p) FX housing loans 23.3% -.7%p (+2.2%p) Municipal deposits 68.1% +4.8%p (-3.3%p) Consumer loans %p (+.3%p) Mutual funds 26.4% -8.6%p (-14.4%p) Corporate loans 11.2%.p (-.2%p) Premium income 1.1% -.1%p (-2.3%p) Municipal loans 53.4% +1.2%p (+1.6%p) 2

21 OTP Group s market share in retail deposits declined to 32.6% in Hungary Retail deposits of credit institutions Market share OTP Group % 5, , % 28.6% % 5,667 5,811 5,957 5, ,669 3,724 3,719 3,672 1,169 1,359 1,422 1,49 1,187 3-Sep-5 31-Dec-5 31-Mar-6 3-Jun-6 3-Sep-6 35% 3 25% 2 15% 1 5% 4 38% 36% 34% 32% % 36.4% % 36.1% 34.8% 34.7% 33.5% 33.3% 34.7% 34.5% 32.6% 33.1% 32.8% 32.1% Sep-5 Dec-5 Mar-6 Jun-6 Sep-6 Sight Other HUF FX Share of sight Retail deposits Retail HUF deposits Retail FX deposits Retail deposits of OTP Group Quarterly changes in volumes , , , , , % 1, % 37.4% 38.5% 1,199 1,117 1, % 1, Sep-5 31-Dec-5 31-Mar-6 3-Jun-6 3-Sep-6 C/A Other HUF w/o maturity Other HUF FX Share of sight 5 45% 4 35% 3 25% 1 8% 6% 4% 2% -2% -4% -6% -8% % 7.4% 2.5% 2.5% 2.1%. -1.6% -1.2% -5.3% -7.3% 3-Sep-5 31-Dec-5 31-Mar-6 3-Jun-6 3-Sep-6 Market OTP Group In this section OTP Group contains only the Hungarian financial institutions such as OTP Bank, OTP Mortgage Bank, Merkantil Bank, OTP Building Society 21

22 OTP Group lost market share in HUF housing loans, its share in FX housing loans decreased by.7% ,283 Housing loans of credit institutions 2,526 2, % 17.1% 2, % 29.1% 31.9% 1,82 1,81 1,8 1,792 1,788 3-Sep-5 31-Dec-5 31-Mar-6 3-Jun-6 3-Sep-6 HUF FX Share of FX loans 2,627 32% 24% 16% 8% Market share OTP Group 52.9% 52.7% 52.4% % 47.4% 46.4% 45.4% 43.9% 42.5% 21.1% 22.6% % Sep-5 Dec-5 Mar-6 Jun-6 Sep-6 Housing loans total HUF FX 15 Housing loans of OTP Group 1,19 1,117 18% 8% Quarterly changes in volumes 6.7% ,31 1,6 1, % 17.5% % 7.6% 1.1% Sep-5 31-Dec-5 31-Mar-6 3-Jun-6 3-Sep-6 15% 12% 9% 6% 3% 6% 4% 2% 5.8% % 3.7% 3.2% 2.8% 1.3%.7% 3-Sep-5 31-Dec-5 31-Mar-6 3-Jun-6 3-Sep-6 HUF FX Share of FX loans Market OTP Group In this section OTP Group contains only the Hungarian financial institutions such as OTP Bank, OTP Mortgage Bank, Merkantil Bank, OTP Building Society 22

23 OTP Group market share in household s consumer loans reached 25. in the third quarter of , % 58 Consumer loans of credit institutions 1, % 63 1, % 755 1, % 968 1, % 1, Sep-5 31-Dec-5 31-Mar-6 3-Jun-6 3-Sep-6 HUF FX Share of FX loans % 3 25% 2 15% 1 5% Market share OTP Group 29.5% 28.7% 28.9% 28.1% 27.5% 24.7% 16.6% 24.4% 24.6% 24.9% % 18.6% 19.7% Sep-5 Dec-5 Mar-6 Jun-6 Sep-6 Household's consumer loans HUF FX Consumer loans of OTP Group Quarterly changes in volumes % 48.7% 24.7% % % % 14% % 15.3% % 7.6% 8.4% 16.4% 14.8% 7.3% 7.7% 2 2 6% Sep-5 31-Dec-5 31-Mar-6 3-Jun-6 3-Sep-6 HUF FX Share of FX loans 1 2% -2% 3-Sep-5 31-Dec-5 31-Mar-6 3-Jun-6 3-Sep-6 Market OTP Group In this section OTP Group contains only the Hungarian financial institutions such as OTP Bank, OTP Mortgage Bank, Merkantil Bank, OTP Building Society 23

24 OTP Group is amongst the top players also in the corporate banking sector Corporate loans (volume of credit institutions and OTP Group) 6,735 7,18 7,492 7,998 8, Sep-5 31-Dec-5 31-Mar-6 3-Jun-6 3-Sep Corporate deposits (volume of credit institutions and OTP Group) 4,241 3,846 3,91 3,336 3, Sep-5 31-Dec-5 31-Mar-6 3-Jun-6 3-Sep-6 Credit institutions OTP Group Credit institutions OTP Group OTP Group market share corporate loans OTP Group market share corporate deposits 14% 14% 13% 12% 11% 1 9% 12.6% 12.3% 12.1% 12.2% 11.8% 11.7% 11.8% 11.4% 11.2% 11.2% 3-Sep-5 31-Dec-5 31-Mar-6 3-Jun-6 3-Sep-6 13% 12% 11% 1 9% 11.4% 1.9% 1.6% 1.7% 1.9% % 9.6% 3-Sep-5 31-Dec-5 31-Mar-6 3-Jun-6 1.2% 9.4% Corporate loans MS Non-fin. corp. loans MS Corporate deposits MS Non-fin. corp. deposits MS In this section OTP Group contains only the Hungarian financial institutions such as OTP Bank, OTP Mortgage Bank, Merkantil Bank, OTP Building Society 24

25 Net asset value of OTP Funds decreased by 1.8% in 3Q 26 and by 7.8 % on a yearly bases Market volume of mutual funds 1,876 1, ,78 2, ,68 1,515 1,676 1,659 1,941 Market share of OTP Funds 2,548 3-Sep-5 31-Dec-5 31-Mar-6 3-Jun-6 3-Sep-6 w/o Real Est.Funds Real Estate Funds Net asset value of OTP Funds Sep-5 31-Dec-5 31-Mar-6 3-Jun-6 3-Sep-6 Money Market OPTIMA PALETTA QUALITY OTP-UBS Fund of Funds MAXIMA EURO DOLLAR FANTAZIA (closed end) ALFA (closed end) PRIZMA Exclusive Inst. Equity Fund Central European Equity Fund Real Estate Fund ASIA Assets under management % 4 35% 3 4.8% 37.8% 38.3% 34.8% 36.7% 33.5% 34.9% 31.9% 26.4% , , ,167 1, , % 25.6% Sep-5 31-Dec-5 31-Mar-6 3-Jun-6 3-Sep-6 3-Sep-5 31-Dec-5 31-Mar-6 3-Jun-6 3-Sep-6 OTP market share - w/o Real Est.Fund OTP Investment Funds OTP Voluntary Pension Fund Other pension funds OTP Private Pension Fund OTP Health Care Fund Other Institutional Investors 25

26 OTP Garancia is the 2 th largest life insurance company in Hungary with 11.1% share of premium income Life and non-life premium income (market) Life and non-life premium income (OTP Garancia) Q 25 4Q 25 1Q 26 2Q 26 3Q 26 3Q 25 4Q 25 1Q 26 2Q 26 3Q 26 Life Non-life Life Non-life Market share of OTP Garancia Quarterly changes of total premium income % 25% 2 17% 2 19% 16% 12% 8% 12.4% 9.1% 13.6% 12.8% 11.6% 11.1% % 1.2% 8.4% 8.7% 8.9% 7.9% 15% 1 5% 5% 8% 3% 7% 4% 3Q 25 4Q 25 1Q 26 2Q 26 3Q 26 Total premium income Life Non-life -5% -1-8% -7% -6% 3Q 25 4Q 25 1Q 26 2Q 26 3Q 26 Market OTP Garancia 26

27 The most significant contribution to the Group s consolidated after tax profit came again from the banking sector Sep 3, 26 Banks Insurance Other fin. Consolidation Non-fin. Service Aggregated Companies Service effect Consolidated Share of banks Assets 7,3, , ,135 15,146 7,831,47 2,96,28 5,735, % Loans 3,867,98 134,48 4,2, ,813 3,69, % Retail loans 2,241,45 11,35 2,342,71 48,465 2,294, % Housing loans 1,376,685 9,13 1,385,788 51,325 1,334, % Consumer loans 864,72 92,23 956,922-2,86 959, % Corporate loans 1,423,977 32,416 1,456, ,155 1,227, % Municipal loans 22, ,284 34, , % Deposits 3,761, ,762,3 46,631 3,715, Retail deposits 2,67, ,67,96-132,19 2,74,96 1. Corporate deposits 87, ,856 96, , Municipal deposits 283, ,267 82,41 2, Equity 765,714 24,333 29,589 27,38 846, , , % Distribution of total assets 93.2% 2.4% 2.5% 1.9% 1. Interest income 49,672 7,168 11,7 4, ,892 54, , % Interest expenses 174,73 1 3,354 2,79 18,848 54,1 126, % Net Interest Income 234,97 7,167 7,716 2, , , % Provisions 3, ,822 11,374 18, % Other incomes 186,896 66,43 2,463 6, ,99 87, , % Other expenses 227,726 66,43 18,359 7,47 319,174 67, , % Pre-tax profit 166,34 7,166 8,87 1, ,783 9, ,64 9.3% After tax profit 141,93 5,851 6,49 1, ,615 9,87 146, % Distribution of PAT 91.2% 3.8% 4.2%.9% 1. Indicators average equity 382,857 12,167 14,795 13, , , % average total assets 7,71, ,6 238,666 15,253 7,598,587 5,955, % ROAE % 5.4% 2.6% 4.1% ROAA 37.7% 48.9% 43.87% 9.94% 36.76% Net interest margin 6.65% 7.83% 6.47% 4.16% 6.63% 27

29 OTP Bank is represented in nine countries in the region OTP Group Branches* Employees Number of clients* Total assets Profit after tax ROAE Cost/income ratio OTP Bank Branches Employees Number of clients Total assets Profit after tax ROAE Cost/income ratio Market share OTP banka Hrvatska Branches Employees Number of clients Total assets Profit after tax ROAE Cost/income ratio Market share 1,32 18,865 ~9, m HUF 6,174.7 bn HUF bn 32.6% 54.4% 41 8,74 ~4.8 m HUF 4,12 bn HUF bn 31.8% 42.8% 17.9% ~.4 m HUF 367 bn HUF 2.6 bn 11.2% 61.5% 3.5% IFRS data as at September 3, 26 * Banks only ** IFRS data as at June 3, 26; acquisitions closed in Oct and Nov 26 *** Local GAAP as at June 3, 26; Zepter acquisition closed in Oct 26, in other cases closing is expected in Dec 26 OTP banka Hrvatska (25) OTP Banka Slovensko Branches Employees Number of clients Total assets Profit after tax ROAE Cost/income ratio Market share CKB*** Branches Number of clients Total assets Profit before tax Market share OTP Banka Slovensko (22) ~,2 m HUF 316 bn HUF 1.2 bn 8.9% 68.7% 3.1% Niška banka (26) OTP Bank Romania (24) Zepter banka (26) Kulska banka (26) Serbia DSK Bank (23) CKB Bulgaria (26) Montenegro 33 ~15 th 385 mn 1.7 mn 44% Niška banka Branches Number of clients Total assets Profit after tax Market share CJSC OTP Bank** Branches Number of clients Total assets Profit before tax Market share CJSC OTP Bank (26) Ukraine 26 ~96 th HUF 11.1 bn HUF 56 mn.3% Zepter banka*** Branches Number of clients Total assets Profit before tax Market share 6 ~95 th 1.4 bn 3 mn ~3.3% Investsberbank (26) Russia 19 ~179 th 83 mn -.6 mn ~1. Investsberbank** Branches Number of clients Total assets Profit before tax Market share OTP Bank Romania Branches Employees Number of clients Total assets Profit after tax ROAE Cost/income ratio Market share DSK Group Branches Employees Number of clients Total assets Profit after tax ROAE Cost/income ratio Market share Kulska banka*** Branches Number of clients Total assets Profit before tax Market share 78 ~88 th 1.3 bn 15 mn ~.4% 53 7 ~63 th HUF 154 bn HUF -2. bn % ~1.3% 361 4,74 ~4.4 m HUF 78 bn HUF 16.2 bn 26.3% 4.3% 14.7% 45 ~62 th 149 mn 3.2 mn ~1.7% 29

30 Contribution of foreign subsidiaries to the consolidated profit grew to 11.8% in 9M 26 DSK Group OTP Banka Slovensko OTP banka Hrvatska* OTP Bank Romania Niska banka Share of foreign subsidiaries 26 3Q Change 26 3Q Change 26 3Q Change 26 3Q Change 26 3Q Change 26 9M Change Main balance sheet items, Q-o-Q Y-o-Y Q-o-Q Y-o-Y Q-o-Q Y-o-Y Q-o-Q Y-o-Y Q-o-Q Q-o-Q Y-o-Y Total assets % 47.4% % 29.3% % 28.5% % 175.2% % 28.2%. 4.8% Gross loans* % 34.3% % -.7% % 42.9% % 362.8% % 26.7%.2% 3.7% Deposits % % % 25.6% % 62.6% % 28.2%.7% 3.1% Shareholders' equity % 4.7% % 2.6% % 25.4% % % 27.9% -.8% 4. Gross loans/deposits ratio 87.6% -2.7% 4.1% 9.2% -4.3% -31.5% 68.6% -3.5% 8.3% 237.2% 48.7% 153.9% 59.9% 5.7% Main P&L items, HUF million Net interest income 1, % 18.3% 1, % 3.1% 2, % 22.5% 1, % % 19.1% -2.1% 2.3% Non-interest income 4, % 6.1% % -65.8% 1, % 36.7% 1, % 27.5% % 1.4% 2.7% Non-interest expenses 6,299.2% 4.7% 2, % -14.7% 3, % 31.8% 2,36-1.2% 132.5% % 14.3% -5.5% -.3% Profit after tax 5, % % 36.1% % -7.2% % 11.8%.3% -.1% Total income 14,66 1.5% 29. 2, % -31.4% 4, % 2, % 17.6% % Operating expenses 6,79.7% 3.8% 1, % -17.5% 2,96 6.4% 33.6% 2,1-5.1% % Cost/income ratio 41.5% % 13.1% 12.3% 65.2% 6.4% 2.5% 93.2% -67.6% -22.5% 12.6% 4.8% Net Interest Margin* 5.3% -.2% -1.3% 2.5%.1%. 3.3%. -.22% 3.2%.1%.1% 6.9% - ROA 2.96% -.4%..79%.47%.3%.94% -.28% -.39% -1.1% %.42% - ROE 24.7%.1%.7% 13.1% 7.7% 1.5% 1.6% -2.9% -4.1% -5.8% 19.7% Market share, % Total assets 14.7%.5% -.2% 3.1%.2%.2% 3.5%.1% % -.1% Retail loans 36.4%.1% -.9% 3.7% -.1% -.2% 3.9%..1% 1.3%.4%.9%.3%. Corporate loans 7.9%.2% % -.1% -2.6% 2.9% -.1%.1% 1.1%.1%.6%.1%. Retail deposits 22.5% -.5% %.1%.1% 5.5%. -.1%.6%...3% -.1% Corporate deposits 7.5%.3%.1% 2.9% -.1%. 2.2%..2%.5%.1%.1%.3%. * In case of DSK, volume of loans adjusted by loans sold were HUF bn (+5.2% q/q, +49.1% y/y), net interest margin calculated in BGN was 5.81% (-23bp q/q, -17bp y/y). 3

31 From the foreign countries, Bulgaria remained the main contributor Sep 3, 26 HU BG CR SK RO SE UK Aggregated Consolidation Foreign Consolidated effect ratio Assets 6,89, , , , ,539 11,1 3,594 7,831,47 1,655,993 6,175, % Loans 2,972, , , ,62 9,233 2,912 3,316 4,2, ,241 3,847, % Retail loans 1,693,324 41, ,849 7,924 47,678 1,589 2,342,71-27,767 2,37, % Housing loans 1,14, ,762 59,578 45,718 2,514 1,385,788 8,883 1,376, % Consumer loans 553,19 281,585 68,27 25,26 27,164 1, ,922-36,65 993, % Corporate loans 1,82, ,128 68,92 135,235 42,555 1,263 3,316 1,456, ,7 1,273, % Municipal loans 196, ,534 5, ,284 23, % Deposits 2,76, , , ,184 38,39 4,859 3,762,3 18,79 3,743, % Retail deposits 1,827, ,61 241,214 76,55 17,997 2,846 2,67,96 2,67, % Corporate deposits 658,449 65,412 41,993 83,36 2,42 1,924 87,856 18,79 852, % Municipal deposits 22,142 17,413 5,981 39, , , % Equity 666,411 91,678 31,962 21,84 28,595 4,671 1, , ,713 65, % Distribution of total assets 77.8% 1.8% 4.7% 4.5% 2..1%. 1. Interest income 361,113 4,676 13,714 12,47 3, ,892 54, , % Interest expenses 157, 1,755 5,313 5,875 1, ,848 54,1 126, % Net Interest Income 24,113 29,92 8,4 6,595 2, , , Provisions 2,24 5,381 1,714 1, ,822 11,374 18, % Other incomes 253,147 13,252 5,791 3,725 3, ,99 87, ,86 9.6% Other expenses 283,219 19,88 9, , ,174 67, , % Pre-tax profit 162,91 18,73 3, , ,783 9, , % After tax profit 138,331 15,845 2, , ,615 9,87 146, % Distribution of PAT 88.9% 1.2% 1.7%.5% -1.4%.. 1. Indicators average equity 683,885 67,78 47,849 21,934 23,234 94,829 3,133 1,598, , % average total assets 5,917,357 81, ,5 355, ,548 11,27 6,868 7,598,587 5,955, % ROAE 4.7% 3.9% 1.5%.4% -3.1% 2.2% 4.1% 4.9% ROAA 41.52% 34.57% 16.49% 7.19% % 36.76% 45.2% Net interest margin % 4.63% 3.71% 3.45% 9.24% 6.63% 8.44% 31

32 OTP has entered new markets with high growth and strong value creation potential Strong growth potential Total loans as % of GDP, 25 (bars) and expected average loan growth (CAGR in LCY), (in circles) HU SK BG CR U RU SE CZ PL Value creation opportunity Net interest margin of the banking system, %, HU SK BG CR U RU SE CZ PL Low current penetration, less uncertain expectations, lower interest rates, better risk management and product development support booming lending Savings side penetration similarly low Good opportunities in transaction business Interest rate margins still high in the newly entered markets The acquired Serbian and Russian banks has large cost efficiency potential Economies of scale can be leveraged stronger Medium term (3-5 years) principle investment targets unchanged for newly acquired banks: 15% ROIC Above 5% market share in key segments Source: National banks, OTP 32

33 Entering Ukraine, Russia and Serbia is a significant step in OTP s growth story Key descriptive data of enlarged OTP Group OTP Group excluding new subsidiaries Newly acquired subsidiaries Enlarged OTP Group total Number of branches (1H 26) % 49% 19% 23 1,242 (+23%) Number of clients (1H 26) ~1 m 43% 46% 11% ~1.2 m 11.2 m (+12%) Total loans (26F, EUR) 15 bn 62% 24% 14% 2.5 bn 17.8 bn (+16%) Total revenues (26F, EUR) 2.2 bn 74% 14% 12%.4 bn 2.6 bn (+14%) Net profit (26F, EUR).7 bn 77% 12% 12%.1 bn.8 bn (+13%) OTP Hungary OTP newly acquired subsidiaries OTP current foreign subsidiaries Source: OTP 33

34 OTP Bank issued in total EUR 1.3 billion bonds to finance acquisitions Lower Tier 2 EUR 3 m issue on September 19, 26 Maturity: 1 years Fixed 5.17% coupon (1 yrs midswap + 12bp) Book runners: Calyon, Citigroup Income Certificate Exchangeable for Shares (ICES) Sale of 14.5 million treasury shares to Opus Securities S.A. (SPV, issuer) Issue of ICES on October 31, 26; with a face value of EUR 514 million Perpetual, callable after 1 years Exchange period between 5th and 1th years For the first 1 years fixed 3.95% coupon, 3M Euribor + 3 bp thereafter Book runner: Merrill Lynch International Upper Tier 2 EUR 5 m EUR issue on November 7, 26 (on %) Perpetual NC1 For the first 1 years fixed 5.875% coupon, 3M Euribor + 3 bps thereafter Book runners: BNP Paribas, UBS Investment Bank 34

35 Further information OTP Bank Investor Relations Tel: investor.relations@otpbank.hu Website: Fax: Forward looking statements This presentation contains certain forward-looking statements with respect to the financial condition, results of operations, and businesses of OTP Bank. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these forward looking statements and forecasts. The statements have been made with reference to forecast price changes, economic conditions and the current regulatory environment. Nothing in this announcement should be construed as a profit forecast.