Revival of lending activity and positive indices for Mobiasbanca-OTP Group S.A. in the third quarter


November 12, 2020

The results of Mobiasbanca - OTP Group S.A. for the third quarter demonstrates the recovering ability of all activity segments, after the period of blockage in the first half of the year. It also demonstrates the bank's ability to adapt to an unpredictable environment.

Although the current context has left its mark on the economy, Mobiasbanca - OTP Group has been operating steadily and a satisfactory level of profitability in the first 9 months of 2020. Achievements of JSC “Mobiasbanca - OTP Group” in the third quarter of this year are also confirmed by a net profit of 83 million lei, despite the increase in the estimated reserves.

Compared with the portfolio as of 31.12.2019, the Bank notes positive dynamics of the retail segment lending 17.4% (of which 8.3% of growth relates to the third quarter), thanks to consumer loans, which grew by 6% (of 5% of them - in the third quarter), as well as mortgage loans with 33% growth (12% - in the third quarter).

The corporate segment lending activity has been affected by the stagnation of many commercial activities in lockdown; however, there is also a growth by 4.4% (7.4% in Q3) in 9 months of 2020.  For the same reasons, the non-performing loans rate was impacted (11%), compared to the end of 2019 year, by increasing with 2.8%, even so, the risk profile is moderate and well monitored.

László Diósi, Chairman of the Executive Committee - CEO Mobiasbanca: “Overall, the robust recovery in lending across different segments during the third quarter is encouraging and inspires confidence in our ability to adapt.  Significant support for economic agents to cope with the economic impact of the pandemic served the loan agreement between Mobiasbanca and the European Bank for Reconstruction and Development (EBRD), amounting to 5 million euros with a Grant component. In the current environment, which will remain uncertain in the short term and could increase in the medium term, the bank has a stable balance sheet and a comfortable level of liquidity, ready to support its customers in the continuation of its development plans.”

The main achievements of the bank in the third Quarter of the year are:

Stable balance sheet with a capital adequacy ratio of 21.16%
Total assets increased by 11% (7% in Q3).
The loan portfolio is growing by 14% (8% in Q3), due to a good lending of individuals and corporate clients.

The deposit portfolio registered an increase of 14.4% (9% in Q3) as well as Mobiasbanca's market share in the individual segment, reaching 12.8% (vs. 11.9% end of 2019). Retail deposits increased by 12.4% thanks to deposits in foreign currency 8% and 4% in local currency. Deposits of legal entities increased by 17.1% due to an increase in the volume of resources on demand in customer accounts.

Operational performance registered an increase compared to the budget by 4.8%

The cost / income indicator reached a positive value of 47.6% (47.2% in Q3) being below the estimated level.

The level of liquidity was maintained under the uncertain monetary policy, declining consumption and declining local currency financing. Mobiasbanca has liquid assets in local currency in the proportion of 45.03%, with a slight decrease compared to the 4th quarter of 2019 (46.6%). The surplus of available liquidity is placed in government securities and NBM bonds.

Net banking income - decreased by 0.7% compared to the same period last year. This is largely due to the following factors:

  • Net interest income decreased by 3% due to the monetary policy of the NBM, namely, the decrease of the base rate and the rate of remuneration of minimum required reserves;  
  • Net commission income also decreased by 9%, due to the decrease in the number of operations performed by customers during the pandemic.
  • Revenues from currency trading showed a positive evolution registering an increase of 37% compared to the same period of the previous year, due to the high volatility on the FOREX market.

Third quarter was characterized by a revival in lending, due to individuals and mortgage lending. Mobiasbanca continued its digital development and transformation projects, social involvement and support of the medical sector, protection and security measures for its employees and customers.



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