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OTP books a HUF 153 billion loss

Telco

OTP Bank booked a HUF 153.1bn loss for Q2 because of the legislation requiring banks to compensate borrowers, an earnings report published today reveals. The bank expects to pay out as much HUF 216 bln in Q2 to debtors who incurred losses due to foreign-exchange fluctuations.

Earnings per share in Q2 came to negative HUF 573, while the bank's net interest income slipped 3pc to HUF 158.3 bln. Net revenue from commissions and fees fell at the same rate to HUF 41.5 bln.

Provisions for loan losses reached HUF 61.1 bln, down by 1% year-on-year. However, the ratio of non-performing loans in the lending portfolio rose to 21.6% at the end of the period from 20.8% twelve months earlier.

OTP had total assets of HUF 10,354.8 bln at the end of June, up by 3% year-on-year, though net assets fell by 15, down to HUF 1,302.4 bln.

Stock of client loans was flat at HUF 7,567.6 bln, with retail loans remaining unchanged at HUF 5,140.9 bln and corporate loans falling by 2%, down to HUF 2,126.4bn.

Stock of client deposits climbed by 7%, reaching HUF 7,046.6 bln. Retail deposits rose by 4% to HUF 4,953.6 bln and corporate deposits increased by 11% to HUF 2,054.5 bln.

OTP Bank raised its estimate for projected losses in Ukraine this year to "closer to" HUF 30 bln, as compared to a HUF 10-20 bln projection made in May. Losses in Ukraine reached HUF 19.3 bln for the first half of 2014.

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