Otp Bank Net Income surged on 162% in 2015 while Revenue dropped on 10.5%
03 Mar 2016 • About Otp Bank (
$OTPD) • By InTwits
Otp Bank reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Otp Bank is a company in decline: 2015 revenue growth was -10.5%, 5 years revenue CAGR was -2.4%
- The company has potentially unprofitable business model: ROIC is at 1.7%
- It operates with high leverage: Net Debt/EBITDA is 2.2x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Otp Bank ($OTPD) key annual financial indicators
| mln. HUF | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,392,049 | 1,480,796 | 1,405,206 | 1,357,654 | 1,214,475 | -10.5% |
| Net Income | 83,147 | 121,690 | 64,199 | -101,985 | 63,583 | -162.3% |
Balance Sheet
|
|---|
| Cash | 595,986 | 602,521 | 539,125 | 2,307,632 | 1,878,960 | -18.6% |
| Short Term Debt | 646,968 | 534,324 | 784,212 | 708,274 | 533,310 | -24.7% |
| Long Term Debt | 1,129,310 | 934,618 | 712,380 | 549,052 | 474,160 | -13.6% |
Cash flow
|
|---|
| Capex | | | 59,286 | 2,490 | 12,259 | 392.3% |
Ratios
|
|---|
| Revenue growth | 1.4% | 6.4% | -5.1% | -3.4% | -10.5% | |
| Net Income Margin | 6.0% | 8.2% | 4.6% | -7.5% | 5.2% | 12.7% |
| CAPEX, % of revenue | | | 4.2% | 0.2% | 1.0% | 0.8% |
| ROIC | 3.0% | 3.5% | 2.0% | -3.9% | 1.7% | 5.6% |
| ROE | 6.1% | 8.3% | 4.3% | -7.4% | 5.1% | 12.5% |
Revenue and profitability
Otp Bank's Revenue dropped on 10.5% in 2015.
Net Income marign surged on 12.7 pp from -7.5% to 5.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.0% in 2015. CAPEX/Revenue increased slightly1.0 pp from in 2012 to 1.0% in 2015. For the last three years the average CAPEX/Revenue was 1.8%.
Return on investment
The company operates at low ROIC (1.74%) and ROE (5.10%). ROIC increased on 5.6 pp from -3.9% to 1.7% in 2015. ROE surged on 12.5 pp from -7.4% to 5.1% in 2015.
Leverage (Debt)
Debt dropped on 19.9% in 2015 while cash dropped on 18.6% in 2015.
Appendix 1: Peers in Banks
Below we provide Otp Bank benchmarking against other companies in Banks industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kazkommertsbank JSC ($KKB) | | | 6.0% | 16.3% | 41.4% |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | | 37.6% | 23.7% | 18.9% | 26.8% |
| Yapi Ve Kredi Bankasi As ($YKBD) | | 14.9% | 4.8% | 19.7% | 25.3% |
| Mcb Bank Ltd ($MCBS) | | 3.0% | -1.7% | 19.4% | 22.4% |
| Turkiye Is Bankasi ($TIBD) | | 20.9% | 0.3% | 15.7% | 15.8% |
| |
|---|
| Median (35 companies) | 8.1% | 10.2% | 4.8% | 12.1% | 3.7% |
|---|
| Otp Bank ($OTPD) | | 6.4% | -5.1% | -3.4% | -10.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lloyds Banking Group ($LLPC) | | 8.0% | 8.9% | 13.1% | 13.6% |
| Banco Santander Sa ($BNC) | 2.2% | 2.7% | 2.6% | 8.9% | 10.2% |
| Diamond Bank ($DBPA) | | 8.2% | 7.9% | 6.0% | 6.7% |
| Banco Bilbao Vizcaya Argentaria Sa ($BVA) | 4.1% | 5.1% | 3.8% | 4.5% | 6.0% |
| Royal Bank Of Scotland Group ($RBS) | | 5.8% | 2.7% | 4.1% | 4.6% |
| |
|---|
| Median (33 companies) | 2.3% | 2.3% | 2.7% | 2.2% | 2.5% |
|---|
| Otp Bank ($OTPD) | | | 4.2% | 0.2% | 1.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 16.3% | 21.7% | 26.9% | 30.1% | 30.3% |
| Mcb Bank Ltd ($MCBS) | 18.7% | 15.0% | 14.4% | 15.8% | 14.9% |
| United Bank Ltd ($UBLS) | 12.6% | 11.7% | 11.8% | 13.8% | 12.6% |
| Axis Bank ($AXB) | 10.2% | 9.6% | 8.9% | 9.1% | 8.8% |
| Bank Audi S.A.L. ($BQAD) | 13.5% | 13.2% | 9.2% | 8.9% | 8.3% |
| |
|---|
| Median (35 companies) | 7.1% | 6.4% | 5.7% | 4.5% | 3.3% |
|---|
| Otp Bank ($OTPD) | 3.0% | 3.5% | 2.0% | -3.9% | 1.7% |
