OTP 1Q26 Review
OTP Group Plc. (“OTP”, “company”) reported its 1Q26 results with 177 billion profit after tax, slightly above the analyst’s consensus of 169 billion.
▪ Net revenue was mostly in line with expectation, but net interest income was much stronger than expected at 527 billion, while the net fee and commission income was lower than expected at 138 billion due to seasonal effects. Cost to income ratio was 42.3% in 1Q26 vs 48.2% in 4Q25 and vs 40.8% in 1Q25.
▪ Performing loan portfolio and the deposit portfolio both increased by 3%, maintaining a stable 77% net loan to deposit ratio.
▪ ROE decreased to 12.8% due to the elevated special tax items. Adjusting for the special tax items, ROE was 23.5% in 1Q26.
▪ Consensus’ 12-month forward target price is HUF 44 211, given the multiple upward revisions in the last months (27% increase compared to the one in our December 2025 report). 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 guidance was maintained from March 2026, 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.