Budapest, 01 August 2025 – The only one Hungarian credit institution participating in the European Banking Authority’s stress test, OTP group finished in the first third of the field. The exceptionally strong stability of OTP Group is indicated by the fact that in the event of an artificially generated severe stress, OTP Group would remain above the current regulatory minimum overall capital requirement throughout the stress test’s time horizon.

The European Banking Authority (EBA) released the 2025 stress test results today. The test is supposed to assess European banks’ resilience to shocks. The financial institutions participated in the exercise over a three-year horizon, assuming a hypothetical adverse macroeconomic scenario and using the common methodology provided by the EBA.

Consistent with the earlier EBA stress test in 2023, this year’s exercise does not contain a common pass/fail threshold, since it is designed to serve as an input to the 2025 Supervisory Review and Evaluation Process (SREP), mainly through determining the Pillar 2 capital requirements (related to supervisory review) or through various supervisory measures, if necessary.

The stress test covered a total of 64 European banks (representing roughly 75 per cent of the EU’s banking sector in terms of total assets), 51 of which are based in countries regulated by the Single Supervisory Mechanism (SSM) operated with the participation of the European Central Bank, while another 13 is headquartered in Denmark, Poland, Hungary, Norway, Romania and Sweden.

From Hungary, only OTP Group participated in the 2025 stress test exercise. The OTP Group is present in ten countries of the Central and Eastern European region and in Uzbekistan through its subsidiaries.

Based on the capital depletion, the most important factor in the stress test, OTP Group’s results would exceed the current regulatory minimum overall capital requirement throughout the stress horizon.

OTP Bank’s Common Equity Tier 1 capital ratio (CET1), adjusted due to changes in Europe’s capital requirement regulation (CRR) and the transition to the IFRS 9 standard compulsory at the European level from 2018 (not containing the transitional arrangements), would change from 17.49 per cent in 2022 to 16.26 per cent (or from 17.94 per cent to 16.26 per cent with the transitional arrangements) at the end of the three-year shock scenario. Comparing the CET1 ratios under the adverse and the baseline scenario, the difference exceeds 6 percentage points at the end of the three-year horizon, which confirms the severity of the stress test. The quality assurance of the submitted stress test data was conducted by the competent supervisory authorities, and in Hungary the Magyar Nemzeti Bank (MNB) was responsible for this.

For more information on the 2025 EBA stress test’s scenarios, assumptions, the methodology and the detailed results as well as the relevant press release, please visit the EBA website.

Magyar Nemzeti Bank