OTP Bank : 3 months ended March 31, 2021, IFRS separate, condensed

OTP BANK PLC.

SEPARATE CONDENSED

FINANCIAL STATEMENTS IN ACCORDANCE

WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION

FOR THE THREE MONTH PERIOD

ENDED 31 MARCH 2021

OTP BANK PLC.

	CONTENTS
SEPARATE STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2021 (UNAUDITED)................	2
SEPARATE CONDENSED STATEMENT OF PROFIT OR LOSS FOR THE THREE MONTH PERIOD
	ENDED 31 MARCH 2021 (UNAUDITED) ....................................................................................	3
SEPARATE CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE THREE MONTH
	PERIOD ENDED 31 MARCH 2021 (UNAUDITED) .....................................................................	4
SEPARATE STATEMENT OF CHANGES IN EQUITY FOR THE THREE MONTH PEROD ENDED 31
	MARCH 2021 (UNAUDITED)........................................................................................................	5
SEPARATE CONDENSED STATEMENT OF CASH FLOWS FOR THREE MONTH PERIOD ENDED 31
	MARCH 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 THREE MONTH PERIOD ENDED 31 MARCH 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:	LOANS (in HUF mn) ......................................................................................................................	12
NOTE 7:	INVESTMENTS IN SUBSIDIARIES (in HUF mn).......................................................................	14
NOTE 8:	SECURITIES AT AMORTISED COST (in HUF mn) [continued] ................................................	12
NOTE 9:	DEPOSITS FROM CUSTOMERS (in HUF mn)............................................................................	14
NOTE 10:	LIABILITIES FROM ISSUED SECURITIES (in HUF mn) ..........................................................	15
NOTE 11:	OFF BALANCE SHEET ITEMS (in HUF mn) ..............................................................................	15
NOTE 12:	DERIVATIVE FINANCIAL INSTRUMENTS (in HUF mn) ........................................................	16
NOTE 13:	NET INTEREST INCOME (in HUF mn) .......................................................................................	17
NOTE 14:	RELATED PARTY TRANSACTIONS (in HUF mn) ....................................................................	18

1

OTP BANK PLC.

SEPARATE STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2021 (UNAUDITED)

(in HUF mn)

		31 March	31 December	31 March
	Note	2021	2020	2020
Cash, amounts due from banks and balances with the National Bank
of Hungary		726,675	579,120	552,917
Placements with other banks, net of allowance for placement losses		2,044,375	1,535,884	1,337,003
Repo receivables		32,633	183,364	17,258
Financial assets at fair value through profit or loss	4.	186,922	160,483	306,046
Financial assets at fair value through other comprehensive income	5.	908,285	911,950	1,355,895
Securities at amortised cost	6.	2,291,388	2,007,692	1,630,446
Loans at amortised cost and mandatorily measured at fair value
through profit or loss	7.	3,967,798	3,898,697	3,597,202
Investments in subsidiaries	8.	1,563,022	1,548,972	1,556,331
Property and equipment		77,152	77,974	75,904
Intangible assets		54,823	57,639	52,818
Right of use assets		12,649	13,479	15,734
Investments properties		1,923	1,936	2,369
Current tax assets		2,123	593	1,614
Derivative financial assets designated as hedge accounting
relationships		20,101	6,817	26,638
Other assets		240,992	169,794	183,977
TOTAL ASSETS		12,130,861	11,154,394	10,712,152
Amounts due to banks and deposits from the National Bank of
Hungary and other banks		1,069,592	766,977	1,129,147
Repo liabilities		262,775	109,612	224,686
Deposits from customers	9.	8,317,645	7,895,735	6,801,717
Leasing liabilities		13,247	14,106	16,351
Liabilities from issued securities	10.	28,164	28,435	43,034
Financial liabilities at fair value through profit or loss		23,849	25,902	27,730
Derivative financial liabilities designated as held for trading		107,540	99,987	262,509
Derivative financial liabilities designated as hedge accounting
relationships		11,563	3,104	12,506
Deferred tax liabilities		4,507	3,062	136
Current tax liabilities		625	-	2,895
Other liabilities		253,867	224,897	250,246
Subordinated bonds and loans		304,430	304,243	303,862
TOTAL LIABILITIES		10,397,804	9,476,060	9,074,819
Share capital		28,000	28,000	28,000
Retained earnings and reserves		1,751,717	1,697,133	1,626,242
Treasury shares		(46,660)	(46,799)	(16,909)
TOTAL SHAREHOLDERS' EQUITY		1,733,057	1,678,334	1,637,333
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		12,130,861	11,154,394	10,712,152

2

OTP BANK PLC.

SEPARATE CONDENSED STATEMENT OF PROFIT OR LOSS FOR THE THREE MONTH

PERIOD ENDED 31 MARCH 2021 (UNAUDITED)

(in HUF mn)

		31 March	31 December	31 March
	Note	2021	2020	2020
Interest income and similar to interest income total	13.	90,193	321,296	74,849
Interest expenses total	13.	(25,394)	(99,630)	(23,659)
NET INTEREST INCOME	13.	64,799	221,666	51,190
Risk cost total		(8,732)	(66,765)	(41,602)
NET INTEREST INCOME AFTER RISK COST		56,067	154,901	9,588
Modification loss		-	(17,358)	-
Net profit from fees and commissions		55,261	219,031	52,459
Net operating income		48,879	60,632	44,110
Other administrative expenses		(90,250)	(323,960)	(88,317)
PROFIT BEFORE INCOME TAX		69,957	93,246	17,840
Income tax		(5,233)	(772)	3,325
NET PROFIT FOR THE YEAR		64,724	92,474	21,165
Earnings per share (in HUF)
Basic		235	333	76
Diluted		235	333	76

3

OTP BANK PLC.

SEPARATE CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE THREE

MONTH PERIOD ENDED 31 MARCH 2021 (UNAUDITED)

(in HUF mn)

The comprehensive income items are as follows:

	31 March	31 December	31 March
Note	2021	2020	2020
NET PROFIT FOR THE YEAR	64,724	92,474	21,165
Items that may be reclassified subsequently to profit or loss:
Fair value adjustment of debt instruments at fair value through other
comprehensive income	(7,144)	(14,459)	(25,668)
Deferred tax (9%) related to fair value adjustment of debt
instruments at fair value through other comprehensive income	76	1,262	2,312
Gains / (Losses) on separated currency spread of financial
instruments designated as hedging instrument	(283)	(1,526)	15
Deferred tax (9%) related to gains / (losses) on separated currency
spread of financial instruments designated as hedging
instrument	25	137	(1)
(Losses) / Gains on derivative financial instruments designated as
cash flow hedge	(2,471)	(296)	(86)
Deferred tax (9%) related to (losses) / gains on derivative financial
instruments designated as cash flow hedge	-	27	-

Items that will not be reclassified to profit or loss:

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

178	(3,275)	107
(134)	310	(10)

Total	(9,753)	(17,820)	(23,331)
NET COMPREHENSIVE INCOME	54,971	74,654	(2,166)

4