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.

OTP Group put much emphasis on maintaining its strong customer deposit base. FX-adjusted performing (Stage 1 + Stage 2) loan portfolio increased by 10% in 1Q 2024 y-o-y, while deposit base increased by 8%. Due to joint effect of these factors the net loan-to-deposit ratio of the Group changed to 73.0%, it is 0.4 pp FX-adjusted increase on the yearly base. The capital position of the Group is stable with CET1 ratio standing at 16.7% at the end of 1Q 2024.

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)

1Q 20241Q 2023
Liabilities to credit institutions and governments2 0481 618
Customer deposits29 31727 390
Issued securities2 2071 099
Other liabilities2 8802 139
Subordinated bonds and loans591551
Total shareholders' equity4 4393 378
Total liabilities and shareholders' equity41 48236 175

1Q 2024

1Q 2023

  • Liabilities to credit institutions and governments2 048
  • Customer deposits29 317
  • Issued securities2 207
  • Other liabilities2 880
  • Subordinated bonds and loans591
  • Total shareholders' equity4 439
  • Total liabilities and shareholders' equity41 482
  • Liabilities to credit institutions and governments1 618
  • Customer deposits27 390
  • Issued securities1 099
  • Other liabilities2 139
  • Subordinated bonds and loans551
  • Total shareholders' equity3 378
  • Total liabilities and shareholders' equity36 175
Funding structure of OTP Bank

Last update: 10/05/2024

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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