Capital Market Activity

Funding strategy


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.

As a consequence of the global economic and financial crisis the importance of stable liquidity significantly increased, therefore OTP Group put much emphasis maintaining its strong customer deposit base. FX-adjusted performing (Stage 1 + Stage 2) loan portfolio increased by 21% in 1Q 2023 y-o-y, while deposit base increased by 23%.

Due to joint effect of these factors the net loanloan-to-deposit ratio of the Group changed to 72.3%, it is 1.2 pps FX-adjusted decrease on the yearly base. The capital position of the Group is stable with CET1 ratio standing at 14.4% at the end of 1Q 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 in May 2021, 2022 and 2023, OTP Bank has a flexible tool to access to the international eurobond markets.

In July 2019 OTP Bank successfully returned to the international debt capital markets with a EUR 500 million Tier 2 issuance. In February 2023 OTP Bank issued a new Tier 2 bond in the aggregate nominal amount of USD 650 million. The issued instruments are CRR/CRD IV compliant Tier 2 and, as such, MREL eligible liability.

As part of its announced ESG strategy, on July 2022 and on September 2022 OTP Bank issued Green Senior Preferred Notes in the aggregate nominal amount of EUR 400 million and USD 60 million. The successful issuance of the 3-year and callable after two years EUR bonds and 4-year and callable after three years USD bonds, are a clear confirmation that the international market supports OTP Group's ESG efforts. In December 2022 OTP Bank issued a new Senior Preferred bond in the aggregate nominal amount of EUR 650 million.

Beyond the capital market instruments from time to time OTP Bank uses syndicated and bilateral loans to diversify its funding structure.

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

1Q 20231Q 2022
Liabilities to credit institutions and governments1 6751 720
Customer deposits27 39021 840
Issued securities1 000417
Other liabilities2 0811 608
Subordinated bonds and loans551282
Total shareholders' equity3 3782 923
Total liabilities and shareholders' equity36 17528 790

1Q 2023

1Q 2022

  • Liabilities to credit institutions and governments1 675
  • Customer deposits27 390
  • Issued securities1 000
  • Other liabilities2 081
  • Subordinated bonds and loans551
  • Total shareholders' equity3 378
  • Total liabilities and shareholders' equity36 175
  • Liabilities to credit institutions and governments1 720
  • Customer deposits21 840
  • Issued securities417
  • Other liabilities1 608
  • Subordinated bonds and loans282
  • Total shareholders' equity2 923
  • Total liabilities and shareholders' equity28 790
Funding structure of OTP Bank

Last update: 10/03/2023

For further information please view the following pages

Debt Capital Market Funding

Presentations and conditions of major outstanding debt instruments

Read more

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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