Otp Bank reports 218% Net Income growth
03 Mar 2017 • About Otp Bank (
$OTPD) • By InTwits
Otp Bank reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Otp Bank is a company in decline: FY2016 revenue growth was -14.2%, 5 years revenue CAGR was -5.6%
- The company has business model with low profitability: ROIC is at 7.4%
- It operates with high leverage: Net Debt/EBITDA is 1.7x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Otp Bank ($OTPD) key annual financial indicators
| mln. HUF | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,480,796 | 1,405,206 | 1,357,654 | 1,214,475 | 1,041,578 | -14.2% |
| Net Income | 121,690 | 64,199 | -101,985 | 63,583 | 202,210 | 218.0% |
Balance Sheet
|
|---|
| Cash | 602,521 | 539,125 | 2,307,632 | 1,878,960 | 1,625,357 | -13.5% |
| Short Term Debt | 534,324 | 784,212 | 708,274 | 533,310 | 543,774 | 2.0% |
| Long Term Debt | 934,618 | 712,380 | 549,052 | 474,160 | 224,358 | -52.7% |
Cash flow
|
|---|
| Capex | | 59,286 | 2,490 | 12,259 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 6.4% | -5.1% | -3.4% | -10.5% | -14.2% | |
| Net Income Margin | 8.2% | 4.6% | -7.5% | 5.2% | 19.4% | 14.2% |
| CAPEX, % of revenue | | 4.2% | 0.2% | 1.0% | | -1.0% |
| ROIC | 3.5% | 2.0% | -3.9% | 1.7% | 7.4% | 5.7% |
| ROE | 8.3% | 4.3% | -7.4% | 5.1% | 15.3% | 10.2% |
Revenue and profitability
Otp Bank's Revenue dropped on 14.2% in FY2016.
Net Income marign surged on 14.2 pp from 5.2% to 19.4% in FY2016.
Return on investment
The company operates at good ROE (15.27%) while ROIC is low (7.40%). ROIC increased on 5.7 pp from 1.7% to 7.4% in FY2016. ROE jumped on 10.2 pp from 5.1% to 15.3% in FY2016.
Leverage (Debt)
Debt dropped on 23.8% in FY2016 while cash dropped on 13.5% in FY2016.
Appendix 1: Peers in Banks
Below you can find Otp Bank benchmarking vs. other companies in Banks industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kazkommertsbank JSC ($KKB) | | 6.0% | 16.3% | 41.4% | |
| Sberbank Of Russia ($SBER) | | 25.1% | 23.4% | 27.4% | 1.5% |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | | 23.7% | 18.9% | 26.8% | 27.0% |
| Yapi Ve Kredi Bankasi As ($YKBD) | | 4.8% | 19.7% | 25.3% | 17.8% |
| Mcb Bank Ltd ($MCBS) | | -1.7% | 19.4% | 22.4% | -10.7% |
| |
|---|
| Median (43 companies) | 13.9% | 4.8% | 12.1% | 5.5% | 3.8% |
|---|
| Otp Bank ($OTPD) | | -5.1% | -3.4% | -10.5% | -14.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Banque Marocaine Du Comm Exterieur ($69IR) | 3.7% | 9.7% | 4.3% | 26.8% | |
| Lloyds Banking Group ($LLPC) | 8.0% | 8.9% | 13.1% | 13.6% | 14.5% |
| Banco Santander Sa ($BNC) | 2.7% | 2.6% | 8.9% | 10.2% | 9.1% |
| Guaranty Trust Bank ($GRTB) | 6.7% | 6.1% | 6.8% | 7.7% | |
| Diamond Bank ($DBPA) | 8.2% | 7.9% | 6.0% | 6.7% | |
| |
|---|
| Median (41 companies) | 2.3% | 2.7% | 2.2% | 2.5% | 1.9% |
|---|
| Otp Bank ($OTPD) | | 4.2% | 0.2% | 1.0% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 21.7% | 26.9% | 30.1% | 30.3% | 28.5% |
| Bank Audi S.A.L. ($BQAD) | 13.2% | 9.2% | 8.9% | 8.3% | 14.5% |
| Mcb Bank Ltd ($MCBS) | 15.0% | 14.4% | 15.8% | 14.9% | 12.5% |
| Zenith Bank ($ZENB) | 19.0% | 17.6% | 15.0% | 11.2% | 11.1% |
| United Bank Ltd ($UBLS) | 11.7% | 11.8% | 13.8% | 12.6% | 10.7% |
| |
|---|
| Median (36 companies) | 6.4% | 5.7% | 4.5% | 3.5% | 4.6% |
|---|
| Otp Bank ($OTPD) | 3.5% | 2.0% | -3.9% | 1.7% | 7.4% |
