Summary - OTP Group’s full year 2025 results

Summary - OTP Group’s full year 2025 results

In 2025 OTP Group delivered outstanding results, supported by robust core banking performance and disciplined execution. Profit after tax reached HUF 1,146 billion/EUR 2.88 billion, translating into a 21.6% ROE. The share price set new all-time highs during the year. OTP paid a record dividend and continued share buybacks; the new CEO appointed in 2025 reaffirmed the previously defined strategic directions.

For the full year, profit before tax increased by 8% y-o-y, driven by a 10% improvement in operating profit. Total income grew by 11% y-o-y in HUF terms and by 12% organically and FX-adjusted (excluding the effect of the 2024 Romanian divestment). Within core banking revenues, net interest income increased by 9% y-o-y (10% organically and FX-adjusted), primarily reflecting the expansion of business volumes; the net interest margin improved by 7 bps to 4.34%.

Net fees and commissions increased by 11% in 2025, supported by higher business volumes and transaction activity. This was partly offset by the increase in Hungarian financial transaction tax rates from August 2024 and the introduction of a new FX conversion levy from October 2024.

Operating expenses increased by 14% organically and FX-adjusted. Personnel expenses and depreciation both grew at double-digit rates, driven by wage inflation typically exceeding CPI, a 1% increase in average headcount, and higher amortisation linked to IT CAPEX.

Credit quality remained stable. The Stage 3 ratio stood at 3.5% at end-December 2025 (stable q-o-q; -0.2 pp y-o-y), while Stage 3 coverage was stable at 61.8%. The Stage 2 ratio improved materially during the year, as the ratio edged visibly lower in many countries.

Consolidated performing (Stage 1+2) loans expanded by 15% in 2025 on an FX-adjusted basis (vs. 9% in 2024), reflecting the broad-based acceleration of customer lending. Consumer loans grew by 18% and mortgage loans by 19% FX-adjusted. Mortgage growth accelerated in 4Q, supported by the Hungarian Home Start subsidised housing loan scheme launched in September 2025. Performing corporate loans increased by 12% in 2025.

Consolidated deposits increased by 11% FX-adjusted in 2025, mainly driven by household deposits (+14% y-o-y). The Group’s net loan-to-deposit ratio stood at 77% at end-December 2025.

At end-December 2025, the consolidated Common Equity Tier 1 (CET1) ratio according to IFRS under the prudential scope of consolidation reached 18.1% (down 0.9 pp vs. end-2024). In the absence of AT1 instruments, the CET1 ratio equals the Tier 1 ratio. The consolidated capital adequacy ratio (CAR) stood at 19.7% at year-end.

Capital allocation remained focused on supporting profitable organic growth, while the Group continued to evaluate value-creating acquisition opportunities. In 2026 the management doesn’t expect a material change in the operating environment, with geopolitical uncertainties persisting. In 2026 FX-adjusted organic performing loan growth may be around the 2025 level (15%) and net interest margin may be close to the last year level (4.34%). The cost-to-income ratio may be somewhat higher than the 2025 level (41.7%), while the risk profile and credit risk cost rate may remain similar to the previous year. Due to the expected decline in leverage ROE may be below the 2025 level (21.6%).

For more please click here.