In 9M 2012 OTP Group posted HUF 96.4 billion accounting profit, whereas the adjusted after tax profit represented HUF 123.7 billion and were down by 6% y-o-y. 3Q 2012 adjusted profit was HUF 43.0 billion underpinning a 16% q-o-q increase. Of that foreign subsidiaries contributed HUF 19.5 billion (+26% q-o-q). Thus the 9M profit contribution of non-Hungarian business comprised HUF 53.5 billion. The 9M profit is basically related to Russia (HUF 33 billion) and Bulgaria (HUF 24 billion). The Croatian and Slovakian operations continued their positive performance, while the Ukrainian and Romanian subsidiaries showed somewhat moderate financial results due to general sluggishness of the domestic markets and increased normative requirements to loan loss provisioning.
The operating profit without one-offs for 3Q represented HUF 115 billion (+3% q-o-q), while 9M operating profit at HUF 340 billion improved by 4% y-o-y.
After the outstandingly high portfolio deterioration in 2Q, non-performing loan formation was materially smaller in 3Q, as a result of the stronger HUF and the FX-fixing programme as well as the improving corporate portfolio. Given the lower quarterly increase of the DPD90+ ratio, despite q-o-q lower risk costs the provision coverage of non-performing loans nicely increased to 80.6% (up by 2.3 ppts q-o-q).
The strong liquidity position of the Group did not require foreign currency denominated wholesale funding, on the contrary, by the end of September the gross liquidity reserves of the Group reached EUR 5.8 billion equivalent.
The consolidated capital adequacy ratio of OTP Group under IFRS increased to 18.2% in the third quarter (+0.4 ppt q-o-q). Within this, the Tier1 ratio reached 13.9%. The stand-alone capital adequacy ratio of OTP Bank stood at 18.2% by end-September.
Public Joint Stock Company OTP Bank is a subsidiary of OTP Bank, which is the largest independent Central-Eastern-European banking group. JSC OTP Bank is one of the largest domestic banks, a recognized leader in the financial sector of Ukraine. The Bank provides a full range of financial services to corporate and private customers, as well as to small and medium enterprises. The bank entered the Ukrainian market in 1998, and since then it enjoys a staunch reputation of socially responsible, reliable and stable institution providing its consumers with services of European quality standard.