OTP Bank Rt.

OTP Bank is a financial institution based in Hungary. Co. is engaged in retail banking (account management, bankcards and Electronic sevices - OTPdirekt) corporate banking and private banking. In Hungary traditional banking operations are performed by Co. while specialized services, including car leasing, investment funds and insurance are developed and offered by Co.'s subsidiaries. Co. expands its operations throughout the region via its foreign subsidiaries. As of Dec 31 2011, Co. had total assets of HUF10,200,527,000,000 and deposits of HUF6,398,853,000,000.
  • TickerOTP
  • ISINHU0000061726
  • ExchangeBudapest Stock Exchange
  • SectorBanks
  • CountryHungary

Analysts

Research Team

Focus: keeping our BUY on Benefit Systems with a lower PT of PLN 930; Polish Pension fund reform – stocks limit in mutual funds/OFEs to be cut from 90% to 80%; Kruk’s 2Q19 investments and recoveries data; Mytilineos – new EPC project

HEADLINES: • Benefit Systems: sore muscles are not an injury (stays BUY) • Polish pension fund reform: stocks limit in mutual funds/OFEs to be cut from 90% to 80% NEUTRAL • Kruk: 2Q19 investments and recoveries data • Mytilineos: new project for the EPC division POSITIVE • PPC: CEO tenders resignation NEUTRAL • Kofola: acquires Coffee Espresso SRO in the Czech Republic NEUTRAL • OTP: sells Express Life to Groupama unit NEUTRAL • Orange Polska: 2Q19E results preview - flat yoy EBITDAaL expected (due on 24 July) NEUTRAL

1 director sold

A director at OTP Bank sold 20,000 shares at 12,021.000HUF and the significance rating of the trade was 79/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names of board m...

Research Team

The Rear-View Mirror – EME markets: Another strong month for ASE index, up 7.4% mom

EME Equity Market – May 2019 Market performance – ASE index the best performer, up 7.4% mom in May. In May, the MSCI EME improved by 0.9% mom. The ASE index rose by 7.4% in May, following a mom rise of 7.2% in April; while Moscow’s index gained 4.1%; and Bucharest’s BET index was up 0.6% mom. On the other hand, the worst performer was Turkey’s ISE30, down 4.8% mom; while the WIG20 index saw mom losses of 4.1%; the BUX index fell 3.8% in May; and Prague’s PX index dropped 2.3% mom.

Hai Thanh Le Phuong

OTP Bank - Slightly Better Net Profit On Provisions, But Mainly In Line

Summary   OTP net income in Q1 HUF 72.6 bln vs. our est. HUF 70.5 bln, cons. est. HUF 69.9 bln Better results on non-int. income, risk costs NIM stable, above FY guidance, NII grows 4% q-o-q on Express Bank (SocGen Bulgaria) OPEX up 15% y-o-y, adjusted for acquisition up 11% (FY guidance 4%) Asset quality benign, risk cost q-o-q significantly lower, y-o-y higher but still at low levels in abs terms Hungarian volumes a bit weaker à should see whether temporary or not In line Q1, but FY forecast needs higher volumes, cost control and acquisitions     OTP - Instant Earnings Comme...

Research Team

Focus: initiating on Arcelik with a BUY and Vestel Beyaz with a HOLD; Turkey macro – close to another temporary equilibrium; Richter – Vraylar milestone boosts results, otherwise a soft 1Q19; OTP Bank posts neutral set of 1Q19

HEADLINES: • Turkish white goods: quality never goes out of style (initiating on Arcelik with a BUY, and Vestel Beyaz with a HOLD) • Turkey macro: close to another temporary equilibrium • Richter: Vraylar milestone boosts results, otherwise a soft 1Q19 NEGATIVE • OTP Bank: posts neutral set of 1Q19; reflects acquisition in Bulgaria NEUTRAL • Eurocash: 1Q19 soft, but still above expectations NEUTRAL • O2 Czech Republic: 1Q19 earnings - small beat on solid cost control • Dino: 1Q19 in between consensus and our forecasts NEUTRAL • SOK Marketler Ticaret: 1Q19 a notch below expectations NEUTRAL •...

OTP Bank NyRt: OTP Bank's acquisition in Moldova broadens its footprint and complements its domestic franchise, a credit positive

OTP continues to invest in well run, profitable and efficient banks outside of Hungary, in line with its plans to be a leading bank in the Central and Eastern European region.

OTP Bank NyRt: Hungary's largest bank steps up bid to be key regional player but volatile asset risk poses a challenge

OTP's latest acquisitions are a good fit and will help reduce risks from volatile loan quality.

OTP Bank NyRt: Key Facts and Statistics - H1 June 2018

A summary company profile, detailing OTP Bank NyRt’s business operations and financial highlights.

OTP Bank NyRt: Update to credit analysis

Our credit view of OTP, reflects its strong capitalization, improving profitability and asset risk, good funding and liquidity profile, and its systemic importance.

OTP Bank NyRt: OTP Bank’s acquisition of SocGen’s Bulgarian and Albanian subsidiaries is credit positive

OTP Bank's increase presence in Bulgaria will increase its competitive position and diversification in regions with moderate volatility with strong growth prospects.

Research Team

The Rear-View Mirror – EME markets: Another strong month for ASE index, up 7.4% mom

EME Equity Market – May 2019 Market performance – ASE index the best performer, up 7.4% mom in May. In May, the MSCI EME improved by 0.9% mom. The ASE index rose by 7.4% in May, following a mom rise of 7.2% in April; while Moscow’s index gained 4.1%; and Bucharest’s BET index was up 0.6% mom. On the other hand, the worst performer was Turkey’s ISE30, down 4.8% mom; while the WIG20 index saw mom losses of 4.1%; the BUX index fell 3.8% in May; and Prague’s PX index dropped 2.3% mom.

Hai Thanh Le Phuong

OTP Bank - Slightly Better Net Profit On Provisions, But Mainly In Line

Summary   OTP net income in Q1 HUF 72.6 bln vs. our est. HUF 70.5 bln, cons. est. HUF 69.9 bln Better results on non-int. income, risk costs NIM stable, above FY guidance, NII grows 4% q-o-q on Express Bank (SocGen Bulgaria) OPEX up 15% y-o-y, adjusted for acquisition up 11% (FY guidance 4%) Asset quality benign, risk cost q-o-q significantly lower, y-o-y higher but still at low levels in abs terms Hungarian volumes a bit weaker à should see whether temporary or not In line Q1, but FY forecast needs higher volumes, cost control and acquisitions     OTP - Instant Earnings Comme...

Robert Brzoza

OTP Bank - Moderate beat on the net level (slightly positive)

Research prepared by PKO BP Securities

Research Team

The Rear-View Mirror – EME markets: Greek equities stand out in April

EME Equity Market – April 2019 Market performance – Greece up 7.2% mom in EUR terms in April 2019. The MSCI EME gained 2.4% in April, and was outperformed by the Greek ASE index, which rose 7.2%. The second-best performing market in EME was Romania, with the BET index up 5.3% mom, followed by the Russian MOEX (+4.1% mom), the Polish WIG20 (+1.4% mom) and the Hungarian BUX (+1.3% mom). The Czech PX index was flat mom; while the Turkish ISE30 dropped by 4.5% mom, but this was related to the depreciation of the TRY against the EUR, as the index was up 1.2% mom in TRY terms.

Research Team

The Rear-View Mirror – EME markets: Turkish ISE30 plummets in March

EME Equity Market – March 2019 Market performance – Turkish ISE index down 13.9% in March. In March, the MSCI EME remained flat, following February’s 1.6% mom contraction. Bucharest’s BET index was the best performer in March, +4.2% mom; followed by the MOEX index (2.1% mom); the ASE index (+2.0% mom); and Budapest’s BUX (+1.5% mom). In negative territory, the worst performer was the Turkish ISE30, -13.9% mom; while the WIG20 and the Czech PX lost 0.9% mom and 0.5% mom, respectively.

1 director sold

A director at OTP Bank sold 20,000 shares at 12,021.000HUF and the significance rating of the trade was 79/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names of board m...

Research Team

Focus: keeping our BUY on Benefit Systems with a lower PT of PLN 930; Polish Pension fund reform – stocks limit in mutual funds/OFEs to be cut from 90% to 80%; Kruk’s 2Q19 investments and recoveries data; Mytilineos – new EPC project

HEADLINES: • Benefit Systems: sore muscles are not an injury (stays BUY) • Polish pension fund reform: stocks limit in mutual funds/OFEs to be cut from 90% to 80% NEUTRAL • Kruk: 2Q19 investments and recoveries data • Mytilineos: new project for the EPC division POSITIVE • PPC: CEO tenders resignation NEUTRAL • Kofola: acquires Coffee Espresso SRO in the Czech Republic NEUTRAL • OTP: sells Express Life to Groupama unit NEUTRAL • Orange Polska: 2Q19E results preview - flat yoy EBITDAaL expected (due on 24 July) NEUTRAL

Research Team

Focus: initiating on Arcelik with a BUY and Vestel Beyaz with a HOLD; Turkey macro – close to another temporary equilibrium; Richter – Vraylar milestone boosts results, otherwise a soft 1Q19; OTP Bank posts neutral set of 1Q19

HEADLINES: • Turkish white goods: quality never goes out of style (initiating on Arcelik with a BUY, and Vestel Beyaz with a HOLD) • Turkey macro: close to another temporary equilibrium • Richter: Vraylar milestone boosts results, otherwise a soft 1Q19 NEGATIVE • OTP Bank: posts neutral set of 1Q19; reflects acquisition in Bulgaria NEUTRAL • Eurocash: 1Q19 soft, but still above expectations NEUTRAL • O2 Czech Republic: 1Q19 earnings - small beat on solid cost control • Dino: 1Q19 in between consensus and our forecasts NEUTRAL • SOK Marketler Ticaret: 1Q19 a notch below expectations NEUTRAL •...

Research Team

Focus: transferring coverage of Electrica (BUY), Transelectrica (HOLD) and Transgaz (HOLD); Yapi Kredi’s 1Q19 highlights; Erste Bank posts 6% beat vs. net profit estimates in 1Q19, due to LLPs releases; Komercni Banka posts solid 1Q19

HEADLINES: • Romanian utilities: entering murky waters (Electrica stays BUY, Transelectrica & Transgaz stay HOLD – transfer of coverage) • Yapi Kredi: 1Q19 highlights POSITIVE • Erste Bank: posts 6% beat vs. net profit estimates in 1Q19, due purely to LLPs releases • Komercni Banka: posts solid 1Q19 NEUTRAL • Coca-Cola Icecek: 1Q19 review - weak numbers, with 5% beat on EBITDA; Pakistan issues continue NEUTRAL • BRD-GSG: weaker pre-provision profitability, but write-backs support bottom line • OMV: 1Q19 results, in line • OMV Petrom: 1Q19 results, no surprises • MOL: 1Q19 results • Myti...

Research Team

Focus: Russia macro – borrowing cost update; CCC’s 1Q19 prelims as weak as we had expected, but way below consensus; Jeronimo Martins’ 1Q19 results ahead of expectations on stronger lfl in Poland; AmRest’s 1Q19 preliminary sales up 30% yoy

HEADLINES: • Russia macro: borrowing cost update • CCC: 1Q19 prelims as weak as we had expected, but way below consensus • Jeronimo Martins: 1Q19 results ahead of expectations on stronger lfl in Poland POSITIVE • AmRest: 1Q19 preliminary sales up 30% yoy, 13% excluding M&A NEUTRAL • Akbank: 1Q19 results summary NEUTRAL • Erdemir: 1Q19 financial results above consensus, with strong FCF POSITIVE • Kruk: takeaways from the meeting with management, quite constructive feedback NEUTRAL • Rostelecom: refined FCF calculation for the dividend policy NEUTRAL • Czech banks: risk of special bank taxes r...

Research Team

Focus: keeping our HOLD on OTP Bank, with a higher HUF 13,330 PT; Motor Oil Hellas’ 4Q18 results, strong adjusted net income; CEZ – 4Q18 EBITDA a 10% miss, net profit misses by c.60%, but solid FY19E guidance; Athens Exchange Group’s 4Q18

HEADLINES: • OTP Bank: dance until the music stops (stays HOLD) • Motor Oil Hellas: 4Q18 results, strong adjusted net income • CEZ: 4Q18 EBITDA a 10% miss, net profit misses by c.60%, but solid FY19E guidance • Athens Exchange Group: 4Q18 - no surprises in the P&L trends, better dividend • Inter Cars: preliminary 2018 results NEUTRAL • Kruk: additional takeaways on Wonga.pl acquisition NEUTRAL • Wirtualna Polska: Emitel and TVP to launch joint marketing campaign for MUX-8 today POSITIVE • Globalworth: York Capital Management sells 8.9m GWI shares at EUR 9.1/share (EUR 81m) NEUTRAL • mBank...

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