OTP Q2 Profits Fall 38% y.o.y.
Consolidated second-quarter after-tax profit of OTP Bank fell 38% year-on-year to HUF 76.1 billion, dragged lower by a windfall profit tax, according to an earnings report released on the website of the Budapest Stock Exchange.
Net interest income rose 27% to HUF 266.4 bln and net revenue from commissions and fees increased 19% to HUF 95.8 bln.
OTP recorded the full-year payment - HUF 67.9 bln - for a windfall profit tax on the banking sector in the second quarter. The bottom line was also hit by HUF 10.1 bln booked for the expected effect of an extension of an interest rate freeze on mortgage loans.
OTP noted that P&L and balance sheet items were distorted by the significant weakening of the forint during the period.
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