Are you sure?

OTP profits lifted by lower risk provisions, says deputy-CEO

OTP Bank's third-quarter after-tax profit improved in a quarter-on-quarter comparison because the bank had to set aside fewer provisions for loan losses, deputy-CEO László Bencsik said at a press conference on Friday, after the bank published its earnings for the period.

Provisions fell from HUF 96 billion in Q2 to HUF 53 billion in Q3 at group level, Bencsik said.

OTP expects “business to start up again” and demand for credit to grow, with the exception of Romania, as the economic environment improves, he said. Because of this, OTP does not plan significant layoffs, he added.

Planned government reforms affecting pension funds and the healthcare sector, a 25% cutback in state bureaucracy and recently approved tax changes could lift Hungary's economic growth as high as 5% in the mid-term, Bencsik said.

OTP Bank had consolidated after-tax profit of HUF 30.9 billion in Q3, up 13% from the previous quarter, but down 33% from the same period a year earlier. An extraordinary bank levy caused most of the year-on-year drop. (MTI – Econews)