OTP Bank announces the financial results for the first semester of 2024
• In the first half of 2024 OTP Bank recorded a net profit of 274 million MDL, generating a return on assets of 3.0% and a return on capital of 17.4%.
• The operating profit reached 302.3 million MDL.
• Net interest income amounted to 363.7 million MDL, down 30% compared to the same period last year, as a result of the decrease in the average base rate from 14.6% in the 1st semester of 2023 to 4.0% in the 1st semester of the year 2024.
• The bank maintains its market position related to loan volumes.
OTP Bank recorded a net profit of MDL 274 million in the first six months of 2024, supported by solid revenues and optimal administrative expenses.
The operating profit recorded in the first semester of 2024 was MDL 302.3 million, down 30% compared to the same period last year, a similar trend to the evolution of net interest income (-29.7%) as a result of the decrease in the base rate averages from 14.6% in the 1st semester of 2023 to 4.0% in the 1st semester of 2024.
The rate of non-performing loans increased by 0.89 percentage points compared to the end of 2023 (or a decrease of 7 basis points compared to the first quarter of 2024), determined by the relaunch of lending argued by the improvement of the macroeconomic climate.
The bank maintains its market position related to loan volumes by focusing on sustainable lending and efficient use of resources, both of depositors and of international financial institutions.
"The robust results of the first semester, as well as the attractiveness of interest rates, create favorable premises for the acceleration of lending under advantageous conditions for OTP Bank clients", remarked Ion Veverita, Financial Director, OTP Bank.
In accordance with local reporting standards, the bank's assets reached the level of 20.4 billion MDL, decreasing by 5% compared to the level recorded at the end of 2023, as a result of balance sheet structure optimization.
OTP Bank recorded solid profitability, with a return on assets of 3.02% (system average - 2.18%) and a return on equity of 17.41% (system average - 12.96%).
The bank's capital adequacy ratio reached the level of 25.71% (+0.47 percentage points compared to the end of 2023) after the recognition of the profit of 2023 and the transition of the remaining profit after the distribution of dividends to shareholders to undistributed profit.
In the first semester of 2024 OTP Group registered a HUF 508 billion profit after tax with an ROE of 23.6%. In 2Q profit expanded by 12% on the back of higher revenues and moderating tax burden, amid increasing risk costs.
The full report published by OTP Bank Plc. can be viewed here.
OTP Bank Moldova, a subsidiary of OTP Group since 2019, is an integrated and universal provider of financial services. With an approach defined by responsibility, commitment and professionalism, OTP Bank understands the needs of customers and the current market context, and is a reliable financial partner in the provision of financial services.
OTP Group is one of the fastest growing banking groups and one of the leaders in the Central and Eastern European region, with an outstanding profitability indicator and a stable capital and liquidity position. With more than 41,000 employees today in 12 countries in the CEE and Central Asia region, the Group provides universal financial services to more than 17.5 million customers and is the market leader in Hungary, Bulgaria, Serbia, Montenegro and Slovenia.
