OTP Bank Nyrt.

OTP Bank reported 9M25 accrued profit of HUF 886 billion, or about EUR 2.2-2.3 billion, up 5% year over year. Pretax profit was up 8%, operating profit up 16%, return on equity was 22.7%, and cost-to-income was 39%. Management said the group’s net interest margin was stable, with Hungary’s NIM at 3.09% versus 2.84% in the prior year period. On guidance, management did not formally issue next-year targets, but said loan growth should continue or improve from the 10% year-to-date pace, mortgage growth in Hungary could rise toward the high teens or close to 20% through at least the end of Q2 next year, and the cost-to-income ratio is likely to be somewhat above 39.3% because of seasonality. Capital adequacy was 18.4% (18.2% fully loaded by year-end expectation), LCR was 235%, and the group was executing a HUF 150 billion buyback program with HUF 88 billion completed.

Laszlo Bencsik sounded confident and constructive, repeatedly calling the quarter strong and saying there was no reason to believe the current trend would deteriorate. He pointed to loan growth, especially in Hungarian mortgages, Uzbek consumer lending, and a turnaround in Hungarian corporate lending, as evidence of sustained momentum. He also emphasized optimism on macro conditions and said OTP remains open to Central Asia as an attractive growth region, while declining to comment on specific M&A rumors.

Bencsik focused on the income statement noise from Hungary’s excess taxes and supervisory fees, noting that these were booked unevenly and that accrued accounting better reflects business performance. He highlighted HUF 38 billion more in Hungarian extra profit tax year over year, HUF 54 billion expected total windfall tax in Hungary this year versus HUF 7 billion last year, and said risk costs were higher mainly because of Russia, where the risk cost rate was 7.6%. On balance sheet strength, he cited capital adequacy of 18.4%, liquidity coverage of 235%, and a net loan-to-deposit ratio of 74%, and said the buyback program continues with HUF 88 billion already repurchased.

Analysts focused on the sustainability of loan growth, whether it could move into the mid-teens or high teens in 2026, and whether NII would keep pace. Management said the factors behind growth are supportive, especially Hungarian mortgages, Uzbek consumer lending, and the pickup in Hungarian corporate lending, while NII should benefit from deposit growth, Hungary/Bulgaria retail deposits, and Bulgaria’s Eurozone entry. Questions also covered regulation, Slovenia pricing pressure, risk costs, capital return, AT1 issuance, and potential Kazakhstan M&A; management said macroprudential measures are generally welcomed, Serbia’s forced APR cuts are negative, Slovenia is challenged by aggressive competitor pricing, AT1 is reserved for a large acquisition, and buyback extension would require supervisory approval.