OTP Bank Moldova announces financial results for the first three quarters of 2022

OTP Bank Moldova announces financial results for the first three quarters of 2022

- OTP Bank strengthens local operations and reports solid operating results, total net income up 57% as well as 11% higher administrative expenses.
- Operating profit reached 552 million MDL, which represents an increase of 107% in comparison with the same period last year.
- Net interest income increased by 63% compared to 9 months of 2021 amounting 650 million MDL.
- The volume of performing loans increased by 1.2% year-on-year, supported by corporate lending.
- Deposits increased by 2% since the end of 2021 mainly due to the corporate segment.
- The result after tax shows a profit of 234 million MDL, an increase of 11% compared to the same period last year.

Operating profit in the first nine months of 2022 reached 552 million MDL, up 107% compared to the same period in 2021, following the positive effect of a dynamic 57% increase in total net revenues. Within this, net fees and commissions increased by 9%, foreign exchange gains increased by 54% and net interest income increased by 63% compared to the same period last year. At the same time, operating expenses increased by 14% in the first nine months, reflecting higher staff costs due to higher salaries and increased depreciation.

Net interest income increased by 63% to 650 million MDL. The annual dynamics were driven by the increase in interest rates because of the tightening of monetary policies to moderate inflationary pressures.

In the first three quarters, in the context of a cautious approach to the declining economic environment and the geopolitical situation, the total cost of risk amounted to -286 million MDL, mainly fueled by a credit risk cost of -241 million MDL. Provisions for other risks amounted to -45 million MDL.

Deposit volume went up by 2%, compared to the end of 2021, due to 11% growth in the corporate segment.

The bank's assets reached 18.14 billion MDL, up 8% from the level recorded at the end of 2021.

The bank's capital adequacy ratio reached 24.59% compared to 18.87% at the end of 2021, amid the increase in own funds by MDL 386 million from December 2021.

In the first nine months of this year, OTP Group recorded an adjusted consolidated profit of 439 billion HUF (22 871 million MDL) while consolidated profit after tax was 232 billion HUF (12 087 million MDL).

The subsidiaries that contributed most to this result are: OTP Core in Hungary (218 billion HUF/ 11 357 million MDL), DSK Bank in Bulgaria (76.5 billion HUF/ 3 985 million RON), Croatia (38 billion HUF/ 1 980 million MDL), Serbia (32 billion HUF/ 1 667 million MDL), Slovenia (19 billion HUF/ 990 million MDL) Ukraine (-26 billion HUF/ -1 355 million MDL), Russia (24 billion HUF/ 1 250 million MDL), Montenegro (5 billion HUF/ 260 million MDL), Moldova (6 billion HUF/ 316 million MDL) and the subsidiary in Albania (7 billion HUF/ 365 million MDL).

About OTP Bank

OTP Bank Moldova, a subsidiary of OTP Group since 2019, is an integrated and universal provider of financial services. With an approach defined by responsibility, commitment and professionalism, OTP Bank understands customer needs and the current market context, acting as a trusted financial partner in providing financial services. The bank occupies the 3rd place, by assets, in the ranking of banking institutions in Moldova, according to NBM data.

OTP Group has more than 70 years of activity in the financial sector throughout Central and Eastern Europe, while its Romanian subsidiary has accumulated 17 years of local market presence. Promoting innovation, stable growth and integrated financial services, OTP Group has become a dominant player in the Central and Eastern European market and is considered an important banking group even on a European scale. The community of around 35 thousand employees daily serves almost 16 million customers in 11 countries.

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