Press release

MOBIASBANCA - OTP GROUP REGISTERS AN INCREASE IN LENDING TO INDIVIDUALS

24 august, 2020
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In the context of the pandemic and the dramatic decline of the economic system, the activity of Mobiasbanca - OTP Group S.A. it is stable, making a profit and a satisfactory level of profitability for the first six months of 2020.

Despite the economic impact caused by the health emergency, compared to similar period in 2019, Mobiasbanca registered a positive dynamics of retail lending + 30.8%, due to consumer loans which increased by +17.9% and mortgage loans by +52.8% increase.

Lending activity on the corporate segment side has been affected by the stagnation of many commercial activities in the emergency, registering an increase of 4.1% vs. similar period in 2019, due to the increase in loans to non-resident legal entities. For the same reasons, the non-performing loans rate was impacted (11.9%), compared to the first quarter of the year (6%), even so, the risk profile is moderate and well monitored.

László Diósi, Chairman of the Executive Committee - CEO Mobiasbanca: “We were expected to have the results affected by the current context. However, in this difficult environment for everyone, the bank has a stable balance and a comfortable level of liquidity. This exceptional situation has served us as a catalyst for accelerating digitization and sales development projects; it is an exercise in reinvention and innovation rather than endurance. That is why I am proud of the Mobiasbanca team, which demonstrated an exceptional dedication, we coped with the situation and we adapted quickly to ensure the continuity of the activity and the assistance provided to our customers.”

Mobiasbanca maintains a good level of profitability, recording a net profit of 40 MDL million despite the large provision. The principal achievements of the bank in the second Quarter, compared to the same period in 2019 are:

Stable balance sheet with a capital adequacy ratio of 19.2%

Total assets increased + 3.9%.

The loan portfolio is growing by + 14%, due to a good lending of individuals.

The deposit portfolio registered an increase of 7.2% as well as Mobiasbanca's market share in the individual segment, reaching 12.4% (vs. 12.2% in Q1). Retail deposits increased by + 15.81% thanks to demand deposits in local currency. Deposits of SMEs and the corporate segment decreased by -3.24%, due to the decrease of economic activity.

Operational performance registered an increase compared to the budget + 2.6% and a decrease of -17% compared to the same period of the previous year, due to the decrease of profit margins as a result of the change in the monetary policy of the BNM.

The cost / income indicator reached a positive value of 58% 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 45.3%, with a slight decrease compared to the 4th quarter of 2019 (46%). The surplus of available liquidity has been placed in government securities and BNM bonds.

Net banking income - increased by + 0.09% compared to the same period last year. This increase is largely due to the following factors:

Revenues from currency trading showed a positive evolution registering an increase of +34.6% compared to the same period of the previous year, due to the high volatility on the FOREX market.

Net interest income - decreased by -8.5% due to the monetary policy of the NBM, namely, the decrease of the base rate and the rate of remuneration of minimum required reserves, however, the bank ranked 3rd in the analyzed period:

Net commission income also decreased by -4%, due to the decrease in the number of operations performed by customers during the pandemic.

During this period, Mobiasbanca was equally attentive to the challenges of its customers, carrying out an intense activity to defer and restructure payments related to loans to legal entities. The strong return of lending activity, starting in May, on the segments of individuals and mortgage lending is very encouraging for the bank. The development projects were continued, launching a new concept of customer service through direct sales agents, who will travel to the client for advice. So, potential customers, individuals, will benefit from counseling and preparation of the necessary package of documents to obtain a loan in a convenient location for them, without going to the bank.

At the same time, the bank has advanced in the development of digital transformation projects. In the final stages of production are projects such as Internet banking for individuals and Mobile banking for legal entities.

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