OTP Bank : Disclosure by institutions, 31 March 2021

OTP Bank Plc.

OTP Bank Plc. consolidated

In line with Act CCXXXVII of 2013 on Credit Institutions and Financial Enterprises, and Regulation

(EU) No 575/2013 of the European Parliament and of the Council

on prudential requirements for credit institutions and investment firms and amending Regulation

(EU) No 648/2012, and EBA/GL/2020/07 of exposures subject to measures

applied in response to the COVID‐19 crisis

(English translation of the original report)

Budapest, 28 May 2021

	DISCLOSURE OF OTP BANK PLC - 31 March 2021
I. OTP Group.......................................................................................................................................................	2
I.1. Regulatory capital and capital requirements .........................................................................................	2
I.1.1. Capital adequacy of the OTP Group..................................................................................................	2
I.1.2. Information about disclosure requirements related to the regulatory capital in line with Commission
Implementing Regulation (EU) No. 1423/2013 ..................................................................................	3
I.2. Leverage ratio ........................................................................................................................................	5

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DISCLOSURE OF OTP BANK PLC - 31 March 2021

I. OTP Group

I.1. Regulatory capital and capital requirements

I.1.1. Capital adequacy of the OTP Group

The capital requirement calculation of the Group for 31.03.2021 is based on CRR data. The prudential filters and deductions have been applied in line with the CRR during the calculation of regulatory capital.

The Group applied standardized capital calculation method regarding credit and market risk, advanced measurement approach (AMA) and basic indicator approach (BIA) regarding the operational risk. On 31.03.2021 the capital adequacy ratio of OTP Group - with the profit of the first quarter - was 18.04%. The Group regulatory capital requirement as of 31th March 2021 was HUF 1,226,204 million and the amount of regulatory capital was HUF 2,765,828 million.

OTP Group's capital requirement

Capital requirement of OTP Group
(million HUF)	2021.03.31
Total capital requirement	1 226 204
Capital requirement of capital and counterparty risk	1 098 233
Capital requirement of market risk	13 390
Capital requirement of operational risk	114 582

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DISCLOSURE OF OTP BANK PLC - 31 March 2021

I.1.2. Information about disclosure requirements related to the regulatory capital in line with Commission Implementing Regulation (EU) No. 1423/2013

The following table is represent the breakdown of regulatory capital.

Common Equity Tier 1 capital: instruments and reserves
(in HUF million)
6	Common Equity Tier 1 (CET1) capital before regulatory adjustments

1. Total regulatory adjustments to Common Equity Tier 1 (CET1)
2. Common Equity Tier 1 (CET1) capital

36	Additional Tier 1 (AT1) capital before regulatory adjustments

1. Total regulatory adjustments to Additional Tier 1 (AT1) capital
2. Additional Tier 1 (AT1) capital
3. Tier 1 capital (T1 = CET1 + AT1)

51	Tier 2 (T2) capital before regulatory adjustment

1. Total regulatory adjustments to Tier 2 (T2) capital
2. Tier 2 (T2) capital
3. Total capital (TC = T1 + T2)

61	Common Equity Tier 1 (as a percentage of total risk exposure
amount
62	Tier 1 (as a percentage of total risk exposure amount
63	Total capital (as a percentage of total risk exposure amount

		(C)
		AMOUNTS SUBJECT TO
(A)	(B)	PRE-REGULATION (EU) No
REGULATION (EU) No	575/2013 TREATMENT OR
31 March 2021
575/2013 ARTICLE REFERENCE	PRESCRIBED RESIDUAL
		AMOUNT OF REGULATION
		(EU) 575/2013
2 535 791
-122 214
2 413 576
0
0
0
2 413 576

352 252

0

352 252

2 765 828

15,75%	92 (2) (a), 465
15,75%	92 (2) (b), 465
18,04%	92 (2) (c)

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DISCLOSURE OF OTP BANK PLC - 31 March 2021

The impact of the transitional arrangements for mitigating the impact of the application of IFRS9 on own funds in accordance with Article 473a of regulation (EU) No 575/2013 is represented in the following table:

IFRS 9 effect

(million HUF)
Regulatory capital
1	Common Equity Tier 1 (CET1) capital

2 Common Equity Tier 1 (CET1) capital as if IFRS 9 or analogous ECLs transitional arrangements had not been applied

3	Tier 1 capital
4	Tier 1 capital as	if	IFRS	9	or	analogous	ECLs	transitional
arrangements had not been applied
5	Total capital
6	Total capital as	if	IFRS	9	or	analogous	ECLs	transitional
arrangements had not been applied
Total risk w eighted assets
7	Total risk w eighted assets

8 Total risk-w eighted assets as if IFRS 9 or analogous ECLs transitional arrangements had not been applied

Capital ratios

9 Common Equity Tier 1 (as a percentage of total risk exposure amount)

Common Equity Tier

1

(as

a

percentage of risk exposure

10 amount) as if IFRS 9 or analogous ECLs transitional arrangements had not been applied

11	Tier 1	(as a percentage of total risk exposure amount)
12	Tier 1	(as a percentage of risk exposure amount) as if IFRS 9 or
analogous ECLs transitional arrangements had not been applied
13	Total capital (as a percentage of total risk exposure amount)
	Total capital (as a percentage of risk exposure amount) as if

14 IFRS 9 or analogous ECLs transitional arrangements had not been applied

Leverage ratio

15 Total exposure

16 Leverage ratio

17 Leverage ratio as if IFRS 9 or analogous ECLs transitional arrangements had not been applied

31.03.2021	31.12.2020
2 413 576	2 341 837
2 251 795	2 140 127
2 413 576	2 341 837
2 251 795	2 140 127
2 765 828	2 695 631
2 604 047	2 493 921
15 327 556	15 166 969
15 165 775	14 965 259
15,75%	15,44%
14,85%	14,30%
15,75%	15,44%
14,85%	14,30%
18,04%	17,77%
17,17%	16,66%
26 809 131	25 558 195
9,00%	9,16%
8,40%	8,37%

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