OTP Bank earnings dip as strong forint, extra profit tax and interest‑rate stop weigh on results

OTP Bank reported a consolidated after‑tax profit of 256 billion forints for the second quarter, 13 % lower than a year earlier and missing analysts' expectations of about 311 billion. The shortfall was driven by a 30.4 billion‑forint negative impact from the extension of the domestic interest‑rate stop, a rise in the extra‑profit tax to 115 billion forints, and the strengthening of the forint, which reduced the value of foreign‑currency earnings.

Net interest income rose 13 % to 1.07 trillion forints, while total revenue increased 5 % to 1.51 trillion. The loan portfolio grew 17 % to 26.58 trillion and deposits rose 12 % to 33.75 trillion. Return on equity reached 22.2 %. The bank also highlighted its pending acquisition of Luminor Bank in the three Baltic states, agreed at a price below book value (approximately €1.84 billion), subject to regulatory approval. Management expects the transaction to support future growth once completed.