Investing.com -- OTP Bank Nyrt (BU:OTPB) reported a net profit of HUF 188.6 billion for the first quarter of 2025, a decline of 24% quarter-on-quarter and 21% year-on-year.
The drop was mainly due to the front-loaded recognition of special banking taxes and supervisory charges, which reduced the quarterly result by HUF 135 billion, OTP said.
Pre-tax profit reached HUF 375.2 billion, up 19% from the previous quarter and 10% from a year earlier.
Operating profit remained flat quarter-on-quarter at HUF 408.1 billion but was up 22% on the year.
Total (EPA:TTEF) income grew 15% year-on-year, supported by net interest income rising 7% and net fees and commissions up 15%.
The effective tax rate surged to 49.7% due to the booking of the full-year Hungarian windfall profit tax and other sector-specific levies in the first quarter.
Return on equity (ROE) fell to 14.9% from 23.5% for full-year 2024. The cost-to-income ratio improved to 40.8%, reflecting strong cost discipline.
Management reiterated its full-year guidance, expecting more than 9% organic loan growth and a net interest margin similar to last year’s 4.28%.
OTP said its ROE "may be lower than in 2024 due to the expected decrease in leverage."