Lending stock of OTP Bank's unit in Hungary fell in 2009, but operating profit increased markedly and retail deposit growth was in the double digits, OTP Bank JSC CEO Dmitriy Zinkov told MTI in Kiev.
Zinkov declined to reveal any figures from the bank's balance sheet at the end of 2009, but said its capital adequacy ratio was well over that required by the Ukrainian National Bank. The quality of the portfolio is also far better than the average for Ukraine's banks, thanks to a conservative risk policy, he added.
In terms of assets, OTP Bank JSC is the seventh-biggest of Ukraine's more than 170 banks.
OTP Bank JSC cut operating costs significantly in 2009 and it plans to continue the process in 2010.
Big companies account for about 40% of OTP Bank JSC's stock of loans, SMEs for 20% and retail clients for 40%. Deposit stock is more or less evenly divided between corporate and retail clients.
OTP Bank injected capital into the unit three times in 2009, raising capital by UAH 800 million (€69 million), and providing subordinated loans of $50 million and $30 million.
Since OTP Bank bought the unit from Raiffeisenbank in 2006, the number of branches has increased from 40 to more than 200, with a staff of almost 4,000. (MTI – Econews)