OTP 2026 Q2 Review
- OTP Bank Plc. ("OTP", "the company") posted an adjusted (reported) after-tax profit of HUF 306 billion in Q2 2026, in line with the analyst consensus.
- Net interest income rose 3% (+6% FX adjusted) QoQ (to HUF 541 billion in Q2, while net fee and commission income increased 11% (+12% FX adjusted) to HUF 152 billion. The cost/income ratio was 41.6% in Q2 2026, compared with 42.3% in Q1 2026 and 38.3% in Q1 2025.
- The performing loan portfolio grew 5% FX-adjusted and the deposit base grew 2% in the second quarter, lifting the net loan/deposit ratio to 78% (2025: 76%).
- Return on equity (ROE) stood at 22.2% on a reported basis in Q2 2026, as the company had already booked the Hungarian special taxes as a lump sum in the first quarter. Assuming a pro-rata recognition of the special items, the normalized ROE was 18.6%, and the first-half normalized ROE was 21.0%.
- Management revised its 2026 guidance on one point: regarding the net interest margin, it now considers a margin above the previous ~4.34% level to be achievable, given the 4.61% margin reached in the first half. The other targets remain unchanged: ~15% FX-adjusted organic loan growth, a cost/income ratio slightly above the 41.7% recorded in 2025, a similar credit risk profile, and a ROE below the 21.6% seen in 2025 due to the expected decline in leverage.
- On 20 July 2026, OTP signed a sale and purchase agreement to acquire 100% of the Baltic Luminor Bank. Regulatory approvals are in progress. In addition, OTP made a USD 47 million strategic investment in U Holdings, the parent company of ueno bank, in Paraguay. Through the transaction, it raised its ownership stake to 9.99% in the digitally advanced bank. Furthermore, management confirmed that it remains open to an acquisition in Central Asia, should it deem the return on investment appropriate.
- The consensus 12-month forward target price is HUF 50,311, following several upward revisions in recent months, implying a further 7.6% upside potential based on the HUF 46 750 share price.