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BRIEF-OTP Bank posts robust annual numbers, expects improvement in 2017
March 3, 2017 / 6:21 AM / 7 months ago

BRIEF-OTP Bank posts robust annual numbers, expects improvement in 2017

    March 3 (Reuters) - Hungary's OTP Bank           earnings
report:
    * Posts Q4 net profit of 26.47 billion forints ($90 million)
compared with forecast of 32.65 billion forint, broadly flat
from year ago - earnings report
    * Q4 net profit sharply lower from Q3 (69.8 bln forints) as
risk costs jump in Q4: 47.6 bln forints vs 12.8 bln in Q3
    * Annual profit 202.5 billion forints vs 63 billion in 2015
    * Q4 operating profit grows 12 percent y/y, -2 pct q/q
    * Risk costs halve in 2016: 93 bln forints vs 221 bln in
2015
    * Loan book grows 5 percent y/y 
    * Deposits grow 6 pct y/y
    * Interest income flat y/y as margins tighten 0.18 pct
points y/y
    * Non-performing loan ratio falls to 14.7 percent of loan
book versus 15.8 pct in Q3 and 17 percent year ago
    * Calculates with improving operating environment in all
countries of operation
    * Expects more than 15 pct ROE in 2017
    * Loan book to expand faster in 2017 than in 2016 but growth
to remain below 10 pct annual rate
    * Net interest margin to tighten by a further 15-20 bps in
2017
    * Portfolio quality to improve in 2017, risk costs expected
to fall
    * Sees operating costs rising 3-4 pct on wage inflation,
digital transformation costs
    * Expects dividend on 2017 results to grow by 15 pct, as has
been the practice for past two years, in base case scenario

Source text for Eikon: here
Further company coverage:          

($1 = 294.2000 forints)

 (Reporting by Marton Dunai)
  

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