OTP Bank : Separate, condensed IFRS Report - First half 2021 results

OTP BANK PLC.

SEPARATE CONDENSED

FINANCIAL STATEMENTS IN ACCORDANCE

WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION

FOR THE SIX MONTH PERIOD

ENDED 30 JUNE 2021

OTP BANK PLC.

	CONTENTS
SEPARATE STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021 (UNAUDITED).....................	2
SEPARATE CONDENSED STATEMENT OF PROFIT OR LOSS FOR THE SIX MONTH PERIOD ENDED
	30 JUNE 2021 (UNAUDITED)........................................................................................................	3
SEPARATE CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTH
	PERIOD ENDED 30 JUNE 2021 (UNAUDITED)..........................................................................	4
SEPARATE STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTH PERIOD ENDED 30 JUNE
	2021 (UNAUDITED) .......................................................................................................................	5
SEPARATE CONDENSED STATEMENT OF CASH FLOWS FOR SIX MONTH PERIOD ENDED 30 JUNE
	2021 (UNAUDITED) .......................................................................................................................	6
NOTE 1:	ORGANIZATION AND BASIS OF FINANCIAL STATEMENTS................................................	7
1.1.	General information ..........................................................................................................................	7
1.2.	Accounting........................................................................................................................................	7
NOTE 2:	SIGNIFICANT EVENTS DURING THE SIX MONTH PERIOD ENDED 30 JUNE 2021 .........	10
NOTE 3:	SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD ...................................................	10
NOTE 4:	FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (in HUF mn)............	11
NOTE 5:	FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
	(in HUF mn)....................................................................................................................................	11
NOTE 6:	SECURITIES AT AMORTISED COST (in HUF mn) [continued]................................................	12
NOTE 7:	LOANS (in HUF mn) ......................................................................................................................	12
NOTE 8:	INVESTMENTS IN SUBSIDIARIES (in HUF mn).......................................................................	14
NOTE 9:	DEPOSITS FROM CUSTOMERS (in HUF mn)............................................................................	15
NOTE 10:	LIABILITIES FROM ISSUED SECURITIES (in HUF mn)..........................................................	16
NOTE 11:	OFF BALANCE SHEET ITEMS (in HUF mn) ..............................................................................	16
NOTE 12:	DERIVATIVE FINANCIAL INSTRUMENTS (in HUF mn) ........................................................	17
NOTE 12:	DERIVATIVE FINANCIAL INSTRUMENTS (in HUF mn) [continued].....................................	18
NOTE 13:	NET INTEREST INCOME (in HUF mn) .......................................................................................	19
NOTE 14:	RELATED PARTY TRANSACTIONS (in HUF mn) ....................................................................	20

1

OTP BANK PLC.

SEPARATE STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021 (UNAUDITED)

(in HUF mn)

		30 June	31 December	30 June
	Note	2021	2020	2020
Cash, amounts due from banks and balances with the National
Bank of Hungary		392,632	579,120	469,992
Placements with other banks, net of allowance for placement
losses		2,272,209	1,535,884	1,476,344
Repo receivables		47,144	183,364	11,922
Financial assets at fair value through profit or loss	4.	181,675	160,483	226,159
Financial assets at fair value through other comprehensive
income	5.	857,351	911,950	983,207
Securities at amortised cost	6.	2,588,668	2,007,692	1,643,025
Loans at amortised cost and mandatorily measured at fair value
through profit or loss	7.	4,144,108	3,898,697	3,575,356
Investments in subsidiaries	8.	1,586,180	1,548,972	1,547,443
Property and equipment		79,205	77,974	75,395
Intangible assets		54,410	57,639	54,402
Right of use assets		11,521	13,479	14,888
Investments properties		1,912	1,936	2,356
Current tax assets		-	593	2
Derivative financial assets designated as hedge accounting
relationships		12,883	6,817	22,529
Other assets		225,560	169,794	168,177
TOTAL ASSETS		12,455,458	11,154,394	10,271,197
Amounts due to banks and deposits from the National Bank of
Hungary and other banks		1,223,842	766,977	732,436
Repo liabilities		315,260	109,612	131,672
Deposits from customers	9.	8,379,970	7,895,735	6,933,116
Leasing liabilities		12,002	14,106	15,401
Liabilities from issued securities	10.	31,003	28,435	41,723
Financial liabilities at fair value through profit or loss		23,529	25,902	27,192
Derivative financial liabilities designated as held for trading		83,259	99,987	154,832
Derivative financial liabilities designated as hedge accounting
relationships		144	3,104	11,522
Deferred tax liabilities		3,653	3,062	3,206
Current tax liabilities		2,588	-	1,032
Other liabilities		256,092	224,897	262,222
Subordinated bonds and loans		295,592	304,243	302,991
TOTAL LIABILITIES		10,626,934	9,476,060	8,617,345
Share capital		28,000	28,000	28,000
Retained earnings and reserves		1,808,794	1,697,133	1,647,635
Treasury shares		(8,270)	(46,799)	(21,783)
TOTAL SHAREHOLDERS' EQUITY		1,828,524	1,678,334	1,653,852
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		12,455,458	11,154,394	10,271,197

2

OTP BANK PLC.

SEPARATE CONDENSED STATEMENT OF PROFIT OR LOSS FOR THE SIX MONTH PERIOD

ENDED 30 JUNE 2021 (UNAUDITED)

(in HUF mn)

		Six month	Six month
		period ended	period ended	Year ended 31
	Note	30 June 2021	30 June 2020 December 2020
Interest income and similar to interest income total	13.	180,676	160,522	321,296
Interest expenses total	13.	(47,812)	(54,505)	(99,630)
NET INTEREST INCOME	13.	132,864	106,017	221,666
Risk cost total		(22,184)	(46,475)	(63,126)
NET INTEREST INCOME AFTER RISK COST		110,680	59,542	158,540
Gains / (Losses) arising from derecognition of financial
assets measured at amortised cost		382	(3,190)	(3,279)
Modification loss		-	-	(17,358)
Net profit from fees and commissions		115,689	100,085	219,031
Net operating income		83,487	43,540	60,272
Other administrative expenses		(170,898)	(160,892)	(323,960)
PROFIT BEFORE INCOME TAX		139,340	39,085	93,246
Income tax		(12,007)	396	(772)
NET PROFIT FOR THE YEAR		127,333	39,481	92,474
Earnings per share (in HUF)
Basic		461	142	333
Diluted		461	142	333

3

OTP BANK PLC.

SEPARATE CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTH

PERIOD ENDED 30 JUNE 2021 (UNAUDITED)

(in HUF mn)

The comprehensive income items are as follows:

Note

NET PROFIT FOR THE YEAR

Items that may be reclassified subsequently to profit or loss:

Fair value adjustment of debt instruments at fair value through other comprehensive income

Deferred tax (9%) related to fair value adjustment of debt instruments at fair value through other comprehensive income

Gains / (Losses) on separated currency spread of financial instruments designated as hedging instrument

Deferred tax (9%) related to gains / (losses) on separated currency spread of financial instruments designated as hedging instrument

(Losses) / Gains on derivative financial instruments designated as cash flow hedge

Deferred tax (9%) related to (losses) / gains on derivative financial instruments designated as cash flow hedge

Items that will not be reclassified to profit or loss:

Six month	Six month	Year ended 31
period ended	period ended	December
30 June 2021	30 June 2020	2020
127,333	39,481	92,474

(11,159)	(15,134)	(14,459)
870	1,320	1,262
411	984	(1,526)
(37)	(88)	137
(2,829)	418	(296)
-	-	27

Fair value adjustment of equity instruments at fair value through other comprehensive income

Deferred tax (9%) related to equity instruments at fair value through other comprehensive income

94	(3,366)	(3,275)
(141)	372	310

Total	(12,791)	(15,494)	(17,820)
NET COMPREHENSIVE INCOME	114,542	23,987	74,654

4