OTP 4Q25 Review
▪ OTP Group Plc. (“OTP”, “company”) reported its 4Q25 results with 297 billion profit after tax, in line with
analyst’s expectation. Full year 2025 profit after tax was record high at 1 146 billion, reflecting a 7% increase
YoY.
▪ Net revenue in the 4Q25 was boosted by the higher net interest income supported by net interest margin
expansion and loan volume growth, mostly offset by the lower other income. Operating expenses increased in line
with expectation, negatively impacted by a 20 billion one-time donation expense.
▪ ROE remained high at 21.6% in 2025 vs 23.5% in 2024, supported by the solid earnings which was negatively
impacted by the higher shareholder’s equity.
▪ Consensus’ 12-month forward target price is HUF 43 186, given the multiple upward revisions in the last months
(24% increase compared to the one in our December 2025 report), which implies a potential 15% price appreciation.
Taken into consideration the pull back in share price, impacted by the conflict in Iran, and the assumption that market
conditions normalize in the short term, the share price has a sizeable appreciation potential.
▪ Management provided its 2026 guidance with similar metrics to the 2025 actuals with organic loan volume growth
of 15% (2025: 15%); net interest margin around 4.34% (2025: 4.34%); cost to income ratio of 41.7% (2025: 41.7%),
and similar credit risk profile compared to 2025. Dividend proposal is 1 071 forint / share, subject to Board
approval.