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OTP Bank Q3 profit climbs 14% to HUF 35.2bn

After-tax profit of OTP Bank, Hungary’s biggest commercial lender, rose 14% to HUF 35.2bn in the third quarter from the same period a year earlier, the bank’s consolidated IFRS report published Friday shows.

Earnings were well over the HUF 28.1bn estimate by analysts polled by Portfolio.hu

Diluted earnings per share came to HUF 132 in Q3, compared to HUF 114 in the base period.

Net interest income, excluding one-offs, rose 3% to HUF 159.2bn. Net fees and commissions climbed 8% to HUF 36.6bn.

Adjusted operating costs were up 6% at HUF 92.6bn.

Return on assets was little changed at 1.7%. Return on equity fell by 1.3 percentage points to HUF 12.3%.

OTP Bank’s total risk costs, with revaluation of forex provisions, inched down 1% to HUF 59.3bn. The bank’s total allowances for possible loan losses reached a forex-adjusted HUF 922.3bn at the end of September.

The proportion of non-performing loans (NPLs), those 90 days past due, in the portfolio rose to 16.0% in Q3 from 15.4% in Q2 and 13.2% in the base period.

The bank said it booked a HUF 1.9bn loss during the period on a government scheme that allows full early repayment of foreign currency-denominated mortgages at discounted exchange rates. But it added that the scheme could generate a total loss of about HUF 39.5bn, assuming one-fifth of borrowers declare their intent to participate by the end of 2011, when it winds up.

OTP Bank paid HUF 7.2bn on the bank levy in Q3, about half of what it paid in the base period.

After-tax profit of OTP Bank core activities in Hungary fell was flat at 28.5bn in Q3.

After-tax profit of the bank’s foreign subsidiaries, without dividend and net cash transfers, came to HUF 15.0bn, down 14%.

In Q1-Q3 OTP Bank had consolidated after-tax profit of HUF 109.6bn, up 9% from the same period a year earlier.

Net interest income rose 3% to HUF 461.9bn during the period. Net fees and commissions was up 6% at HUF 104.7bn.

Total risk costs, with revaluation of forex provisions, reached HUF 166.5bn, down 17% from the base period.

OTP Bank had total assets of HUF 9,902.7bn on September 30, down 1% from twelve months earlier. Net assets were up 7% at HUF 1,406.3bn.

Net client loans came to HUF 6,807.8bn, down a forex-adjusted 3%. Retail loans edged up 1% to HUF 5,022.9bn. Corporate loans fell 4% to HUF 2,285.4bn.

Client deposits came to HUF 6,138.4bn, up a forex-adjusted 3%. Retail deposits were up 2% at HUF 4,568.5bn. Corporate deposits increased 6% to HUF 1,528.6bn.