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OTP Q2 figures satisfactory but outlook negative, says deputy CEO

OTP Bank's second quarter was satisfactory, but an apparent slowdown in the global recovery does not improve the outlook for the short- or mid-term, deputy-CEO László Bencsik said on Friday, after the bank published its Q2 report.

Investors' panicky reactions over the past weeks, as well as the firming Swiss franc and slower-than-expected growth of the Hungarian economy – now seen expanding only about 2% this year – increase risks for the OTP group's core activities on the domestic market, Bencsik said.

On the positive side, OTP bank's capital position continues to be outstanding, he said. Its capital adequacy ratio is 18%, it is the third most stable bank in Europe on the basis of stress tests, and it has €5.2 billion of liquid reserves at group level, he added.

OTP Bank's report showed a strong performance lifted by its foreign units consolidated after-tax profit by 36% to HUF 37.3 billion in Q2 from the same period a year earlier. After-tax profit of OTP Bank's core business in Hungary fell 29% to HUF 29.9 billion during the period, while after-tax profit of its foreign units reached HUF 15.7 billion, compared to a HUF 1.2 billion loss in the base period.