Investor Presentaiton
Strong capital position, all capital adequacy ratios are well above the regulatory requirements
Decomposition of the change in CET1 ratio in 2021
Regulatory minima of capital adequacy ratios for OTP Group
(changes in pps)
in 4Q 2022
13.2%
17.5%
Combined
3.2%
10.7%
+1.2
-0.1
Buffer Req.
8.8%
15.4%
+0.4
2.0%
3.2%
+2.8 -0.5
P2R1/
-0.3
-0.1
-1.1
1.5%
3.2%
1.1%
P1R 8.0%
6.0%
[
4.5%
CAR
Tier 1
CET1
2.5% CCB
0.2% CCYB²
0.5% O-SII³
0.0% SRB
4Q
2020
FX effect FX effect Regula-
in RWA in CET1 tory
change
Organic Eligible ICES Sale of
effect in interim bonds treasury
RWA profit redemption shares*
Other
effects
4Q
2021
* On 15 December 2021, OTP Bank sold in total 12,315,635 treasury shares to two Special
Employee Partial Ownership Plan Organizations at a price of HUF 16,047 per share. The
positive capital impact of the sale of treasury shares was HUF 198 billion.
CAR and CET1 rate
actual values¹
19.1%
17.8%
"
17.5% 16.2%
2021
1Q
2022
CAR
CET1 rate
•
•
CET1 ratio decreased by 1.3 pps q-o-q:
CET1 capital decreased by HUF 115 billion:
-33 bn: impact of quarterly profit after tax
-80 bn: effect of changes in the fair value of
available-for-sale financial instruments
-28 bn: due to the transitional effects of IFRS 9
-15 bn: deductions due to deferred tax increase
+40 bn: effect of write-off of Russian goodwill
RWA increased by HUF 633 billion:
-60 bn: effect of changes in FX rates
+554 bn: the effect of organic growth
+139 bn: increase in non-credit risk RWA
1 The (P1R + P2R) / P1R ratio (SREP rate) for OTP Group changed to 125% starting
from 1 March 2022.
2 In 4Q 2022 the CCyB level will increase to 1% in Bulgaria and 0.5% in Romania,
therefore the weighted CCyB requirement on a consolidated basis is expected to be
0.19% in 4Q 2022.
3 NBH set the O-SII buffer requirement at 0.5% starting from 2022 and the requirement
is expected to further increase to 1% from 2023 and to 2% from 2024.
Consolidated MREL requirements
.
•
The consolidated MREL requirement has to be met by 1 January 2024,
following a 2-year transitional period. Required level is 17.66% of the Group's
total risk exposure amount (TREA or RWA) and 5.89% of the Group's total
exposure measure (TEM).
Mandatory intermediate target level that had to be met by 1 January 2022 was
14.45% of the Group's TREA or RWA and 5.89% of the Group's TEM.
The MREL requirement is to be reviewed at least once a year.
• The minimum level of subordination applicable from 16 December 2024 is set
at 13.5% of TREA or RWA, 5% of TEM and 8% of TLOF.
• OTP Group has to meet the combined buffer requirement in addition to the
MREL TREA requirement / MREL TREA subordination requirement.
1 Indicators calculated for the scope of accounting (IFRS) consolidation. In the absence of additional core capital
(AT1), the Tier 1 rate is the same as the CET1 rate.
Abbreviations: P1R: Pillar 1 requirement; P2R: Pillar 2 req.; CCB: Capital conservation buffer;
CCyB: Countercyclical buffer; O-SII: Other Systemically Important Institutions buffer; SRB: Systemic Risk buffer.
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