OTP's Q1 after-tax profit in Bulgaria grows 23% y/y

Total income from Bulgarian operations leapt by an annual 25% in January-March, reaching 88.2 billion forints, OTP, owner of Bulgaria's DSK Group, said in an interim financial statement on Friday.

Performance was mostly driven by a 30% yearly jump in net interest income, to 64.3 billion forints. At the same time, net fee and commission income went up 9% on the year to 18.8 billion forints, while other net non-interest income grew by 24% to some 5.1 billion forints.

OTP's operating expenses in Bulgaria expanded by an annual 15% to 36.2 billion forints due to a lump-sum recognition of yearly supervisory charges in the first quarter of 2024.

DSK Group's net loan-to-deposit ratio rose by six percentage points on the year to 78% at the end of March. Gross loans to customers climbed by 21% year-on-year to 4.34 trillion forints, while deposits rose by 13% to some 5.43 trillion forints.

OTP's total assets in Bulgaria increased to 6.83 trillion forints at the end of March from some 6.46 trillion forints at the end of 2023. DSK Bank was Bulgaria's second-largest lender as of end-March, Bulgarian central bank data show.

Besides banking, OTP's units in Bulgaria are also active in financial leasing, asset management and other operations, through subsidiaries DSK Leasing, DSK Asset Management and OTP Factoring Bulgaria.

Elsewhere in Southeast Europe, OTP is present in Albania, Croatia, Serbia, Romania, Slovenia, Montenegro and Moldova.

(1 euro = 387 Hungarian forints)