OTP earnings leap on expansion

Food

OTP Bank Nyrt, Hungary's banking flagship, said profit rose 23% in the second quarter as economic growth stoked demand for financial services. Net income rose to Ft 46.7 billion, or Ft 180.4 a share, from Ft 38.1 billion, or Ft 144.6, a year earlier, the Budapest-based bank said in a statement today. Profit was higher than most analysts expected. OTP is targeting acquisitions in former communist countries where growth is outstripping its domestic market. OTP Chairman Sándor Csányi has spent USD 2.2 billion buying banks in the region in the past five years and is planning more. Net income was expected at Ft 44 billion in the median estimate of six analysts surveyed by Bloomberg. OTP's net interest income, the difference between the money paid on deposits and that collected on loans, declined 4.9% to Ft 73.1 billion, the bank said. That was in line with what analysts had expected. Income from fees and commissions surged 46% to Ft 71.5 billion because of gains from currency trading. (Bloomberg)

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.

Support the BBJ

Gastronomy