OTP Quarterly Report: Earnings Climb

Fourth-quarter after-tax profit of OTP Bank, Hungary's biggest commercial lender, rose 19% year-on-year to 297.3 billion, according to a new earnings report.

Net interest income increased 11% to HUF 509.2 billion. Net revenue from commissions and fees climbed 8% to HUF 160.4 billion.

For the full year, after-tax profit rose 7% to HUF 1,146.3 billion. Net interest income increased 9% to HUF 1,944.6 billion and net revenue from commissions and fees climbed 11% to HUF 604.3 billion. Earnings per share came to HUF 4,435.

Total risk costs surged 25% to HUF 197.4 billion. Provisions for impairment on loan losses reached HUF 168.8 billion, of which HUF 121.8 billion was for loans on OTP's Russian books.

In a disclaimer on war-related risks, OTP said it "continues to monitor war situations closely" while acknowledging that the group's ability to conduct business could be adversely affected by disruptions and restrictions to its infrastructure, business processes and technology services.

The bank noted that it had booked the full-year amount for the Hungarian bank levy, HUF 32.8 billion, in the first quarter. It booked HUF 54.5 billion, after reductions, for the full-year amount of the windfall profit tax.

After-tax profit of OTP's core business in Hungary reached HUF 264.0 billion in 2025, down 2% from the base period.

At a press conference after the report was published, deputy CEO László Bencsik said last year's pace of growth would continue in 2026, with a favourable year expected for both retail and corporate lending. "We hope the current problems will not spoil the outlook," he added.

Even though OTP has not made an acquisition in three years, lending growth reached 15% in 2025, beating regional competitors' single-digit increases, the deputy CEO noted. Management is weighing the possibility of value-boosting acquisitions, both in OTP's current geographical scope and beyond, especially in the Central Asia region, he added.