The profit was over the HUF 32.3 bln estimate by analysts polled by Portfolio.hu.

Earnings per share came to HUF 145.

In the base period, OTP booked a HUF 153.1 bln loss on the impact of legislation requiring banks to compensate borrowers for using exchange rate margins when calculating repayments on foreign currency-denominated loans. Eliminating the effect of these and other extraordinary items in Q2 and the base period, OTP would have reported profit of HUF 40.6 bln, up 4%.

Net interest income fell 12% to HUF 140 bln during the period. Net income from commissions and fees rose 6% to HUF 43.9 bln.

Operating expenses dropped 5% to HUF 96.8 bln.

Losses on provisions for loans declined 26% to HUF 45.2 bln.

ROE, adjusted for one-off effects, rose 1.9 percentage points to 13.3%. ROA was flat at 1.5%.

OTPʼs foreign businesses contributed 22% to after-tax profit, adjusted for one-off effects. Profit of the bankʼs Hungarian businesses rose 5% to HUF 31.8 bln. Profits of its Bulgarian unit edged down 1% to HUF 10.2 bln. All of the foreign units were profitable, with the exception of OTPʼs bank in Russia, which had a HUF 4.2 bln loss, nearly double that in the base period.

OTP had total assets of HUF 10.761 trillion on June 30, up 4% from twelve months earlier. Net assets fell 3% to HUF 1.259 trillion.

Gross client loans dropped 10% to HUF 6.773 trillion. Retail loans fell 12% to HUF 4.567 trillion. Corporate loans were down 13% at HUF 1.911 trillion.

The ratio of non-performing loans in the portfolio narrowed to 18.4% from 19.3% twelve months earlier.

Stock of client deposits increased 9% to HUF 7.658 trillion. Retail deposits were up 9% at HUF 5.405 trillion. Corporate deposits climbed 8% to HUF 2.221 trillion.