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 24% in 2Q 2023 y-o-y, while deposit base increased by 21%. Due to joint effect of these factors the net loan-to-deposit ratio of the Group changed to 76.1%, it is 0.1 pps FX-adjusted increase on the yearly base. The capital position of the Group is stable with CET1 ratio standing at 15.2% at the end of 2Q 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)

2Q 20232Q 2022
Liabilities to credit institutions and governments2 1631 701
Customer deposits26 90423 552
Issued securities1 727405
Other liabilities1 9241 693
Subordinated bonds and loans553302
Total shareholders' equity3 5963 168
Total liabilities and shareholders' equity36 86730 822

2Q 2023

2Q 2022

  • Liabilities to credit institutions and governments2 163
  • Customer deposits26 904
  • Issued securities1 727
  • Other liabilities1 924
  • Subordinated bonds and loans553
  • Total shareholders' equity3 596
  • Total liabilities and shareholders' equity36 867
  • Liabilities to credit institutions and governments1 701
  • Customer deposits23 552
  • Issued securities405
  • Other liabilities1 693
  • Subordinated bonds and loans302
  • Total shareholders' equity3 168
  • Total liabilities and shareholders' equity30 822
Funding structure of OTP Bank

Last update: 10/08/2023

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

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Country Ratings

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

Read more

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