Capital Market Activity

Funding strategy

Background

Traditionally, within OTP Group’s funding sources the customer deposit base has a significant role, primarily due to the strong positions reached by the Group on the Hungarian and Bulgarian deposit markets.

OTP Group put much emphasis on maintaining its strong customer deposit base. FX-adjusted performing (Stage 1 + Stage 2) loan portfolio increased by 19% in 3Q 2023 y-o-y, while deposit base increased by 20%. Due to joint effect of these factors the net loan-to-deposit ratio of the Group changed to 73.8%, it is 1.7 pps FX-adjusted decrease on the yearly base. The capital position of the Group is stable with CET1 ratio standing at 16.4% at the end of 3Q 2023.

Funding Sources

OTP Group applies wide range of money market and capital market sources to cover the funding need of its domestic and foreign customer loans. The Group is active primarily on the local capital markets through OTP Bank and OTP Mortgage Bank by issuing several instruments with varying maturity, denomination and structure.

Through its EMTN Programme established in May 2020 and updated on a yearly basis, OTP Bank has a flexible tool to access to the international eurobond markets. Beyond the bond market instruments, from time-to-time OTP Bank uses syndicated and bilateral loans to diversify its funding structure. Out of the foreign subsidiary banks of the OTP Group, the two banks acquired in 2023, NKBM and Ipoteka Bank has outstanding international bonds.

Main components of the consolidated balance sheet (in HUF billion)

3Q 20233Q 2022
Liabilities to credit institutions and governments2 1911 781
Customer deposits28 96825 815
Issued securities2 082588
Other liabilities1 7412 069
Subordinated bonds and loans585317
Total shareholders' equity4 0073 452
Total liabilities and shareholders' equity39 57434 022

3Q 2023

3Q 2022

  • Liabilities to credit institutions and governments2 191
  • Customer deposits28 968
  • Issued securities2 082
  • Other liabilities1 741
  • Subordinated bonds and loans585
  • Total shareholders' equity4 007
  • Total liabilities and shareholders' equity39 574
  • Liabilities to credit institutions and governments1 781
  • Customer deposits25 815
  • Issued securities588
  • Other liabilities2 069
  • Subordinated bonds and loans317
  • Total shareholders' equity3 452
  • Total liabilities and shareholders' equity34 022
Funding structure of OTP Bank

Last update: 10/11/2023

For further information please view the following pages

Debt Capital Market Funding

Presentations and conditions of major outstanding debt instruments

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Credit Ratings

OTP Group members’ credit ratings by the major rating agencies

Read more

Country Ratings

Moody’s rating of countries in which OTP Group has presence.

Read more

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