OTP board to put profit into retained earnings

Banking

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The board of OTP Bank has proposed placing 90% of last year's net profit of HUF 92.5 billion into retained earnings and the rest into general reserves, according to the lender's AGM agenda posted on the website of the Budapest Stock Exchange.

The National Bank of Hungary (MNB) earlier suggested all lenders to refrain from paying dividends or making commitments to pay dividends on 2019 and 2020 earnings until after September 30, 2021, because of the coronavirus crisis.

In an earnings report released early in March, OTP said its board "may decide about paying a dividend advance" after September 30.

Empowered by a state-of-emergency decree, the board will take decisions on the AGM proposals in lieu of shareholders at a meeting on April 16 because of a ban on gatherings due to the pandemic.

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