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Lower risk provisions put OTP Bank Ukraine unit in black in Q2

OTP Bank's Ukrainian unit had net profit of UAH 236 million (€23 million) in Q2, improving from a loss in the same period a year earlier, JSC OTP Bank said on its home page.

Profits, calculated with local accounting standards, were lifted by cheaper financing for lending, higher revenue from commissions, cost controls and lower risk provisions, the bank said.

Net revenue from interest was UAH 1.04 billion and net revenue from commissions came to UAH 109.4 million.

Operating costs were level with the same period a year earlier.

JSC OTP Bank had total assets of UAH 26.8 billion on June 30. Net assets came to UAH 3.05 billion.

Stock of loans fell 18.3% to UAH 23.7 billion in the twelve months to June 30. Corporate loan stock came to UAH 10.8 billion and retail loans reached UAH 12.9 billion.

Total liabilities fell 10.1% to UAH 23.7 billion. Corporate deposit stock reached UAH 3.3 billion and retail deposits rose a sharp 32% to UAH 3.7 billion.

The bank's capital adequacy ratio was 20.5%, well over the required minimum of 10%. JSC OTP Bank's liquidity ratio was 87.99%, compared to a minimum of 40%.

JSC OTP Bank had losses of HUF 43.7 billion in 2009 compared to net profit of HUF 16.4 billion in 2008, OTP Bank's consolidated audited annual report shows. (MTI-ECONEWS)