OTP Bank Moldova announces financial results for the first three quarters of 2023

OTP Bank Moldova announces financial results for the first three quarters of 2023


Operating profit reached MDL 566 million, marking a 3% increase compared to the same period in 2022.
- Net interest income totaled MDL 663 million, up 2%.
- Deposits increased by 11% compared to the end of 2022, as a result of an 11% increase in the deposits of individuals and 10% in the deposits of legal entities.

OTP Bank Moldova recorded a net profit of MDL 622 million in the first three quarters of 2023, supported by an increase in operating profit and positive credit risk costs. This is an increase of 166% compared to the same period of 2022, which represents 76% of the profit growth of the entire banking system.

"At OTP Bank, we approach all activities through the lens of sustainability: we think strategically to achieve sustainable results for our clients and to have a positive impact on economic development. Considering the difficult economic context of recent years, both local and regional, and benefiting from the expertise of OTP Group, we applied an optimal ratio between investments and provisions. These reserves, redirected into innovative banking products, allow us to offer clients the security of continued growth," said Bogdan Spuză, President of the Executive Committee - CEO, OTP Bank.

Operating profit recorded in the first nine months of 2023 was MDL 566 million, up 3% compared to the same period last year, while net interest income increased 2% compared to last year, recording two consecutive periods of high margins. Operating expenses increased by 6%, with a growth rate lower than the rate of inflation due to a moderate advance in personnel expenses of 11%, while other administrative expenses decreased by 6%.

"Efficient management of financial assets, alongside the optimization of non-interest expenses contributed to strengthening the profitability and stability of OTP Bank. At the same time, the trust of clients and the multidimensional approach to financing needs led to the consolidation and development of the spectrum of services offered, contributing to sustainable development. We will continue implementing strategic actions aimed at digitization and diversification of services offered to customers, including through the support and expertise of OTP Group." mentioned Ion Veverita, Vice President of the Executive Committee, Financial Director of OTP Bank.

In the first nine months, the total risk cost improved significantly, given the release of loan impairment provisions following the upward revision of macroeconomic expectations.

The rate of non-performing loans according to prudential criteria increased by 53 basis points in the first 9 months of the year, driven by strict risk policies, standing below the system average of 6.7%.

The volume of deposits increased by 11% compared to the end of 2022, after an 11% increase in deposits by individuals and 10% in deposits by legal entities. Comparing the first nine months of 2023 with the same period last year, deposits increased by 11%, driven by a 19% advance in the retail segment and 4% in the corporate segment. The gross loans/deposits ratio decreased to 48% (-18 pp).

In accordance with local reporting standards, the bank's assets reached the level of MDL 20 billion, increasing by 8% compared to the level recorded at the end of 2022.

The bank's capital adequacy ratio reached 27.98% (+207 basis points compared to the end of 2022), determined by the decrease in the volume of risk-weighted assets.

In the first nine months of this year, OTP Group recorded an adjusted consolidated profit of HUF 779 billion (EUR 2 billion) while the consolidated profit was HUF 858 billion (EUR 2.2 billion).

The subsidiaries that contributed the most to this volume are OTP Core from Hungary (HUF 216 billion/ EUR 565 million), DSK Bank from Bulgaria (HUF 151 billion/ EUR 396 million), Slovenia (HUF 88 billion/ EUR 232 million), Russia (HUF 73 billion / EUR 190 million), Ukraine (HUF 52 billion / EUR 137 million), Croatia (HUF 45 billion / EUR 119 million), Serbia (HUF 50 billion / EUR 132 million), Montenegro (HUF 17 billion / 45 million EUR), Albania (11 billion HUF/ 28 million RON) and the subsidiary from Moldova (12 billion HUF/ 31 million EUR).

About OTP Bank

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 Bank ranks third, by assets, in the ranking of banking institutions in Moldova, according to NBM data.

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 currently in 12 countries in the CEE and Central Asia region, the Group provides universal financial services to more than 17.5 million customers. As the most active banking integrator in the Central and Eastern Europe region, the Group has successfully acquired and integrated 23 banks since the early 2000s to date. The bank is the market leader in Hungary, Bulgaria, Serbia, Montenegro and Slovenia. OTP Group is headquartered in Hungary and has a diversified and transparent shareholding structure. The banking group has been listed on the Budapest Stock Exchange since 1995.

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