Lower First Quarter Profit at OTP Bank

OTP Bank's consolidated adjusted profit after tax for the first quarter was HUF 188.576 billion, 21% lower than in the same period last year, ahead of the average expectations, the largest Hungarian financial institution has reported on the website of the Budapest Stock Exchange.

Several special negative items weighed on the Q1 profitability, as the full annual amount of those items was recognized in one sum in the first quarter. These items reduced the Q1 profit after tax by altogether HUF 135 billion.

The most important of these items was the special banking taxes in Hungary: bearing in mind the corporate income tax shield, the special banking taxes booked at the Hungarian Group members in the first quarter amounted to HUF 117.0 billion (after tax). The gross tax burden recognized in the first quarter reached HUF 128.5 billion (before tax), of which

• the full annual amount of the special tax on financial institutions introduced in 2010 was booked in Q1, representing HUF 32.9 billion.
• The gross HUF 106.7 billion windfall profit tax (before deductions) for the full-year 2025 was booked in a lump sum in Q1, which was reduced by the prorated part of the expected full-year reduction. The full-year windfall profit tax after reduction is expected to be HUF 54.5 billion, thus in Q1 the windfall tax after the prorated part of the reduction was HUF 93.7 billion (before corporate income tax shield);
• The annual amount of the financial transaction tax on card transactions shall be paid in a lump sum in the first quarter, based on the annual volume of previous year’s transactions. In Q1, this item amounted to HUF 2 billion.