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OTP Bank

LSE:OTPD
Snowflake Description

Adequate balance sheet and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
OTPD
LSE
HUF3,603B
Market Cap
  1. Home
  2. GB
  3. Banks
Company description

OTP Bank Plc., together with its subsidiaries, provides commercial banking services in Hungary, Bulgaria, Russia, Ukraine, Croatia, Romania, Slovakia, Serbia, and Montenegro. The last earnings update was 12 days ago. More info.


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OTPD Share Price and Events
7 Day Returns
0%
LSE:OTPD
0%
GB Banks
1.5%
GB Market
1 Year Returns
0%
LSE:OTPD
-9.9%
GB Banks
2.1%
GB Market
OTPD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
OTP Bank (OTPD) 0% 0% 8.6% 0% 90% 144.5%
GB Banks 0% 7.6% 6.2% -9.9% 15.3% -12.2%
GB Market 1.5% 5.2% 9.7% 2.1% 17.8% 6.8%
1 Year Return vs Industry and Market
  • OTPD outperformed the Banks industry which returned -9.9% over the past year.
  • OTPD underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 2.1% over the past year.
Price Volatility
OTPD
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for OTP Bank's competitors could be found in our database.

Value

 Is OTP Bank undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of OTP Bank to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for OTP Bank.

LSE:OTPD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 11 analysts.
= Stable Book Value * Return on Equity
= HUF9,101.04 * 15.4%
HUF1,400.09
Book Value of Equity per Share Weighted future Book Value estimates from 11 analysts. HUF9,101.04
Discount Rate (Cost of Equity) See below 8.7%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:OTPD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 9%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.6
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.595 (1 + (1- 9%) (27.03%))
0.827
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.83
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.827 * 9.02%)
8.68%

Discounted Cash Flow Calculation for LSE:OTPD using Excess Returns Model Model

The calculations below outline how an intrinsic value for OTP Bank is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:OTPD Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (15.4% – 8.68%) * HUF9,101.04)
HUF609.68
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= HUF609.68 / (8.68% - 1.23%)
HUF8,175.11
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= HUF9,101.04 + HUF8,175.11
HUF17276.15
LSE:OTPD Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in LSE:OTPD represents 0.00176x of BUSE:OTP
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.00176x
Value per Share
(Listing Adjusted, USD)
= Value per Share (HUF) x Listing Adjustment Factor
= HUF 17,276.15 x 0.00176
$30.37
Value per share (USD) From above. $30.37
Current discount Discount to share price of $22.80
= -1 x ($22.80 - $30.37) / $30.37
24.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price OTP Bank is available for.
Intrinsic value
25%
Share price is $22.8 vs Future cash flow value of $30.37
Current Discount Checks
For OTP Bank to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • OTP Bank's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • OTP Bank's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for OTP Bank's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are OTP Bank's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:OTPD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HUF HUF1,215.48
BUSE:OTP Share Price ** BUSE (2019-04-24) in HUF HUF12970
United Kingdom of Great Britain and Northern Ireland Banks Industry PE Ratio Median Figure of 15 Publicly-Listed Banks Companies 10.28x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 797 Publicly-Listed Companies 16.16x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of OTP Bank.

LSE:OTPD PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BUSE:OTP Share Price ÷ EPS (both in HUF)

= 12970 ÷ 1,215.48

10.67x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • OTP Bank is overvalued based on earnings compared to the GB Banks industry average.
  • OTP Bank is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does OTP Bank's expected growth come at a high price?
Raw Data
LSE:OTPD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.67x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
5.4%per year
United Kingdom of Great Britain and Northern Ireland Banks Industry PEG Ratio Median Figure of 14 Publicly-Listed Banks Companies 0.85x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 564 Publicly-Listed Companies 1.49x

*Line of best fit is calculated by linear regression .

LSE:OTPD PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.67x ÷ 5.4%

1.97x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • OTP Bank is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on OTP Bank's assets?
Raw Data
LSE:OTPD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HUF HUF6,567.61
BUSE:OTP Share Price * BUSE (2019-04-24) in HUF HUF12970
United Kingdom of Great Britain and Northern Ireland Banks Industry PB Ratio Median Figure of 16 Publicly-Listed Banks Companies 0.88x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,367 Publicly-Listed Companies 1.52x
LSE:OTPD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BUSE:OTP Share Price ÷ Book Value per Share (both in HUF)

= 12970 ÷ 6,567.61

1.97x

* Primary Listing of OTP Bank.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • OTP Bank is overvalued based on assets compared to the GB Banks industry average.
X
Value checks
We assess OTP Bank's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. OTP Bank has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is OTP Bank expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is OTP Bank expected to grow at an attractive rate?
  • OTP Bank's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • OTP Bank's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • OTP Bank's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:OTPD Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:OTPD Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 5.4%
LSE:OTPD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 8%
United Kingdom of Great Britain and Northern Ireland Banks Industry Earnings Growth Rate Market Cap Weighted Average 12.7%
United Kingdom of Great Britain and Northern Ireland Banks Industry Revenue Growth Rate Market Cap Weighted Average 4.6%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:OTPD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in HUF Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:OTPD Future Estimates Data
Date (Data in HUF Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 426,000
2022-12-31 397,000
2021-12-31 1,173,180 377,981 9
2020-12-31 1,101,057 348,321 13
2019-12-31 1,002,050 336,005 9
LSE:OTPD Past Financials Data
Date (Data in HUF Millions) Revenue Cash Flow Net Income *
2018-12-31 928,028 -867,573 318,233
2018-09-30 897,454 23,519 308,750
2018-06-30 885,642 -754,183 302,148
2018-03-31 847,736 217,689 293,315
2017-12-31 854,859 -93,224 281,142
2017-09-30 772,220 -69,519 239,178
2017-06-30 744,899 -42,895 229,583
2017-03-31 737,171 -337,421 220,787
2016-12-31 693,295 -80,728 202,210
2016-09-30 645,172 87,740 202,495
2016-06-30 577,805 212,208 106,047
2016-03-31 693,355 257,451 95,650

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • OTP Bank's earnings are expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).
  • OTP Bank's revenue is expected to grow by 8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:OTPD Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from OTP Bank Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:OTPD Future Estimates Data
Date (Data in HUF Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1,528.00 1,528.00 1,528.00 1.00
2022-12-31 1,424.00 1,424.00 1,424.00 1.00
2021-12-31 1,431.27 1,619.36 1,207.61 9.00
2020-12-31 1,301.38 1,477.80 1,149.32 11.00
2019-12-31 1,252.85 1,344.54 1,193.00 9.00
LSE:OTPD Past Financials Data
Date (Data in HUF Millions) EPS *
2018-12-31 1,215.48
2018-09-30 1,179.08
2018-06-30 1,154.08
2018-03-31 1,119.98
2017-12-31 1,074.11
2017-09-30 912.06
2017-06-30 874.74
2017-03-31 840.39
2016-12-31 765.33
2016-09-30 769.40
2016-06-30 402.21
2016-03-31 365.45

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • OTP Bank is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess OTP Bank's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
OTP Bank has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has OTP Bank performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare OTP Bank's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • OTP Bank has delivered over 20% year on year earnings growth in the past 5 years.
  • OTP Bank's 1-year earnings growth is less than its 5-year average (13.2% vs 50.1%)
  • OTP Bank's earnings growth has not exceeded the GB Banks industry average in the past year (13.2% vs 42.2%).
Earnings and Revenue History
OTP Bank's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from OTP Bank Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:OTPD Past Revenue, Cash Flow and Net Income Data
Date (Data in HUF Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 928,028.00 318,233.00 440,351.00
2018-09-30 897,454.00 308,750.00 419,539.00
2018-06-30 885,642.00 302,148.00 409,844.00
2018-03-31 847,736.00 293,315.00 389,870.00
2017-12-31 854,859.00 281,142.00 380,751.00
2017-09-30 772,220.00 239,178.00 394,291.00
2017-06-30 744,899.00 229,583.00 293,986.00
2017-03-31 737,171.00 220,787.00 334,030.00
2016-12-31 693,295.00 202,210.00 326,713.00
2016-09-30 645,172.00 202,495.00 324,772.00
2016-06-30 577,805.00 106,047.00 374,931.00
2016-03-31 693,355.00 95,650.00 327,595.00
2015-12-31 524,146.00 63,583.00 318,110.00
2015-09-30 325,295.00 47,774.00 309,179.00
2015-06-30 339,591.00 108,721.00 283,488.00
2015-03-31 180,184.00 -105,793.00 311,442.00
2014-12-31 355,146.00 -101,985.00 329,000.00
2014-09-30 558,038.00 -111,204.00 311,967.00
2014-06-30 572,343.00 -134,504.00 264,001.00
2014-03-31 592,466.00 59,128.00 274,942.00
2013-12-31 605,719.00 64,199.00 318,006.00
2013-09-30 572,821.00 88,351.00 446,900.00
2013-06-30 582,204.00 119,819.00 453,414.00
2013-03-31 573,922.00 120,114.00 401,219.00
2012-12-31 569,151.00 121,690.00 316,738.00
2012-09-30 544,268.00 69,767.00 318,703.00
2012-06-30 539,312.00 62,584.00 315,356.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • OTP Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • OTP Bank used its assets more efficiently than the GB Banks industry average last year based on Return on Assets.
  • Unable to establish if OTP Bank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess OTP Bank's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
OTP Bank has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is OTP Bank's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of OTP Bank's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from OTP Bank Company Filings, last reported 3 months ago.

LSE:OTPD Past Debt and Equity Data
Date (Data in HUF Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,826,657.00 973,702.00 1,442,343.00
2018-09-30 1,770,656.00 1,038,896.00 1,572,278.00
2018-06-30 1,707,377.00 1,130,013.00 1,676,750.00
2018-03-31 1,592,449.00 930,663.00 1,565,587.00
2017-12-31 1,640,055.00 886,389.00 1,617,401.00
2017-09-30 1,575,440.00 888,863.00 1,507,954.00
2017-06-30 1,496,263.00 936,599.00 1,241,236.00
2017-03-31 1,436,231.00 894,875.00 1,475,016.00
2016-12-31 1,420,649.00 864,722.00 1,689,644.00
2016-09-30 1,372,086.00 1,133,157.00 1,889,002.00
2016-06-30 1,300,946.00 1,170,896.00 1,677,170.00
2016-03-31 1,232,515.00 1,060,411.00 1,891,055.00
2015-12-31 1,233,659.00 1,197,676.00 1,997,588.00
2015-09-30 1,226,054.00 1,246,716.00 2,044,019.00
2015-06-30 1,258,665.00 1,450,815.00 2,154,048.00
2015-03-31 1,196,124.00 1,501,150.00 2,470,638.00
2014-12-31 1,264,166.00 1,591,162.00 2,603,944.00
2014-09-30 1,314,958.00 1,499,267.00 2,380,220.00
2014-06-30 1,302,433.00 1,373,786.00 801,463.00
2014-03-31 1,440,662.00 1,333,087.00 875,654.00
2013-12-31 1,509,332.00 1,730,773.00 991,557.00
2013-09-30 1,523,650.00 1,438,854.00 798,727.00
2013-06-30 1,525,340.00 1,441,445.00 800,147.00
2013-03-31 1,536,014.00 1,581,422.00 858,249.00
2012-12-31 1,514,553.00 1,802,317.00 924,960.00
2012-09-30 1,460,310.00 1,698,650.00 937,966.00
2012-06-30 1,420,036.00 1,892,625.00 937,582.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • OTP Bank has an acceptable proportion of non-loan assets held.
  • OTP Bank's liabilities are made up of primarily low risk sources of funding.
  • Loans at OTP Bank are broadly funded by customer deposits.
  • OTP Bank's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • OTP Bank has a low allowance for bad loans.
  • OTP Bank has a high level of bad loans (greater than 2%).
X
Financial health checks
We assess OTP Bank's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. OTP Bank has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is OTP Bank's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.69%
Current annual income from OTP Bank dividends. Estimated to be 2.86% next year.
If you bought $2,000 of OTP Bank shares you are expected to receive $34 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • OTP Bank's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.01%).
  • OTP Bank's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.14%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:OTPD Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Banks Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 5%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.1%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:OTPD Future Dividends Estimate Data
Date (Data in HUF) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 944.50 2.00
2022-12-31 737.33 3.00
2021-12-31 328.30 10.00
2020-12-31 343.12 14.00
2019-12-31 268.66 14.00
LSE:OTPD Past Annualized Dividends Data
Date (Data in HUF) Dividend per share (annual) Avg. Yield (%)
2019-04-12 219.000 1.674
2019-03-01 219.000 1.749
2018-03-22 219.000 2.040
2017-04-12 190.000 1.906
2016-03-22 165.000 2.184
2015-03-25 145.000 2.524
2014-04-25 145.000 3.483
2013-04-26 121.700 2.768
2012-05-24 100.000 2.491
2011-03-04 72.000 1.754
2011-02-25 72.000 1.269

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, OTP Bank has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but OTP Bank only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of OTP Bank's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.1x coverage).
X
Income/ dividend checks
We assess OTP Bank's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can OTP Bank afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. OTP Bank has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of OTP Bank's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Sándor Csányi
COMPENSATION HUF0
AGE 66
TENURE AS CEO 26.9 years
CEO Bio

Dr. Sándor Csányi has been the Chief Executive Officer and Chairman of the Board at OTP Bank Nyrt. since May 1992. Dr. Csányi is responsible for the strategy and overall operations. He is the Owner of Bonitas 2002 Kft. and Delhus Zrt. He served as Senior Head of Department at hungarian Credit Bank ltd., (Magyar Hitel Bank) from 1986 to 1989. He served as Deputy Chief Executive Officer and Deputy General Manager of Kereskedelmi és Hitelbank Rt (K&H Bank) from 1989 to 1992. He served at the revenue Directorate and at the Secretariat of the hungarian Ministry of Finance and as Head of Division at the hungarian Ministry of Food and agriculture from 1983 to 1986. After this, he served as Managing Director of Hubertus Rt., and from 1999 to 2012 he served as Deputy Chief Executive Officer and then Chairman and Chief Executive Officer of Csányi Winery Ltd., (formerly Villányi Winery Ltd.) and retired. He was employed by the Ministry of Agriculture and Food Industry from 1978 to 1989. He left the Ministry, he served as a Deputy Head of the Investment Policy Department. He serves as the Chairman of the Supervisory Board at Csányi Winery Rt., Gyulaj Forestry and Hunting Co. Ltd., OTP Garancia Insurance Co, Ltd., and Groupama Garancia Biztosító Zrt. He serves as Co-Chairman of the National Association of Entrepreneurs and Employers (VOSZ). He is a Member of the European Advisory Board of MasterCard. He has been Vice Chairman/Deputy Chairman of the Board of Directors at MOL Magyar Olaj- es Gazipari Nyilvanosan Mukodo Reszvenytarsasag (alternate names, Hungarian Oil- and Gas Company ((MOL plc) MOL Magyar Olaj- és Gázipari Rt.)) since 2001. He has been an Independent Director of MOL Magyar Olaj- es Gazipari Nyilvanosan Mukodo Reszvenytarsasag since October 20, 2000. He has been a Non-Executive Director of OTP Bank Nyrt. since May 15, 1992. He has been a Co-Chairman of the Chinese-Hungarian Business Council since January 2012. Since April 2017, he has been a member of the FIFA Council. He serves as a Director of Matáv Rt., and European Savings Bank Group. He serves as Member of the Board of Directors of the Advisory Council of the Hungarian Financial Supervisory Authority, of the Board of Administration of the World Savings Banks Institute, of the International Association of Business Leaders and of the Institut International d'Etudes Bancaires. He has been the Chairman/President of the Hungarian Football Association (MLSZ) since July 2010. He served as a Director of Elcoteq SE from 2010 to June 24, 2010. He served as a Director of Magyar Telekom Telecommunications Public Limited Company from 2000 to November 2003. He served as a Member of OTP Bank’s Supervisory Board. He served as the Chairman of the Supervisory Board at DSK Bank Plc. He served as a Member of the Board of Directors of the Hungarian Banking Association until April 2011. He is a Financial Economist, a Certified Price Analyst and a Chartered Accountant. He is also a qualified Pricing Specialist and Certified Auditor. Since March 2015, he has been a member of UEFA’s Executive Committee. He has been an honorary professor of the University of Western Hungary since 2004. From 1989 to 1992, he was Deputy Chief Executive Officer of the Commercial & Credit Bank (K&H). Dr. Csányi holds degrees in Agricultural Engineering and Agricultural Economics. Dr. Csányi graduated with a Bachelor’s degree in Business Administration from the College of Finance and Accounting in 1974 and Degree in Economics from the Budapest University of Economic Sciences in 1980 where he obtained his Doctoral degree in 1983.

CEO Compensation
  • Sándor's compensation has been consistent with company performance over the past year.
  • Sándor's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the OTP Bank management team in years:

5.9
Average Tenure
50.5
Average Age
  • The average tenure for the OTP Bank management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Sándor Csányi

TITLE
Chairman & CEO
AGE
66
TENURE
26.9 yrs

László Bencsik

TITLE
Deputy CEO and Chief Financial & Strategic Officer
AGE
48
TENURE
9.7 yrs

András Takács

TITLE
Managing Director of Wealth & Investment Directorate

Zoltán Tuboly

TITLE
Chief Accountant and MD of Accounting & Finance Directorate

Alexander Pataki

TITLE
Investor Relations & Capital Markets

Csere Bálint

TITLE
Chief Legal Adviser & MD of Legal Directorate

Gábor Bucsek

TITLE
Managing Director at Compliance & Security Directorate
TENURE
0.2 yrs

Zoltán Nagy

TITLE
MD of Marketing & Communication Directorate and Marketing Manager

Vörös Tamás

TITLE
MD of Sales & Business Development Directorate
AGE
44

Imre Bertalan

TITLE
MD of HR Management Directorate & HR Manager
AGE
53
TENURE
2.1 yrs
Board of Directors Tenure

Average tenure and age of the OTP Bank board of directors in years:

12
Average Tenure
65
Average Age
  • The average tenure for the OTP Bank board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Sándor Csányi

TITLE
Chairman & CEO
AGE
66
TENURE
26.9 yrs

Tamás Erdei

TITLE
Vice Chairman
AGE
64

László Wolf

TITLE
Deputy CEO of Commercial Banking Division & Executive Director
AGE
58
TENURE
3 yrs

András Michnai

TITLE
Member of the Supervisory Board & MD
COMPENSATION
HUF12M
AGE
64
TENURE
11 yrs

Antal Kovács

TITLE
Deputy CEO of Retail Division & Executive Director
COMPENSATION
HUF12M
AGE
66
TENURE
3 yrs

Ágnes Rudas

TITLE
Member of the Supervisory Board
AGE
60
TENURE
3 yrs

Tibor Tolnay

TITLE
Chairman of the Supervisory Board
COMPENSATION
HUF18M
AGE
68
TENURE
20.3 yrs

József Vörös

TITLE
Non-Executive Director
AGE
67
TENURE
26.9 yrs

Gábor Horváth

TITLE
Deputy Chairman of the Supervisory Board
COMPENSATION
HUF16M
AGE
63
TENURE
12 yrs

Tibor Bíró

TITLE
Non-Executive Director
AGE
66
TENURE
26.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess OTP Bank's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. OTP Bank has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

OTP Bank Plc., together with its subsidiaries, provides commercial banking services in Hungary, Bulgaria, Russia, Ukraine, Croatia, Romania, Slovakia, Serbia, and Montenegro. The company's retail banking services include retail current account packages and foreign currency accounts; bankcards; securities accounts, long term investment accounts, retirement savings accounts, and wealth planning services; and telephone, mobile phone, or Internet banking services. It also offers corporate banking services, including account keeping and opening services; cash management services, such as domestic and international transfers, batch payments, liquidity management, savings management, and financing; business cards; financing services comprising market-rated loans, bank guarantees, factoring, forfeiting, bills of exchange, leasing, project finance, syndicated lending, subsidized loans, corporate home loans, export and import loans, agricultural loans, and European Union grants; investments, including securities accounts, stock exchange transaction orders, investment fund shares, and government securities; treasury services; and e-services. In addition, the company provides private banking services consisting of HUF and FX account management, investment and fund management, and loan facilities. Further, it offers mortgage lending, finance leasing, refinancing, house savings and loan, work-out, and life annuity services, as well as develops, leases, and manages real estate properties. The company offers its services through a network of 1,488 branches. OTP Bank Plc. was founded in 1949 and is based in Budapest, Hungary.

Details
Name: OTP Bank Plc.
OTPD
Exchange: LSE
Founded: 1949
HUF12,523,097,768
277,757,867
Website: http://www.otpbank.hu
Address: OTP Bank Plc.
16, Nádor Street,
Budapest,
1051,
Hungary
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BUSE OTP Common Shares Budapest Stock Exchange HU HUF 21. Aug 1995
OTCPK OTPB.F Common Shares Pink Sheets LLC US USD 21. Aug 1995
DB OTP Common Shares Deutsche Boerse AG DE EUR 21. Aug 1995
LSE 0M69 Common Shares London Stock Exchange GB HUF 21. Aug 1995
SEP OTP Common Shares The Stock Exchange Prague Co. Ltd. CZ CZK 21. Aug 1995
LSE OTPD 2 GDR REPR 0.5 ORD HUF100(REG S) London Stock Exchange GB USD 14. Aug 1995
DB OSZG 2 GDR REPR 0.5 ORD HUF100(REG S) Deutsche Boerse AG DE EUR 14. Aug 1995
BDL OTPBK 2 GDR REPR 0.5 ORD HUF100(REG S) Bourse de Luxembourg LU USD 14. Aug 1995
Number of employees
Current staff
Staff numbers
41,128
OTP Bank employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/24 21:05
End of day share price update: 2019/04/24 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/04/12
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.