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OTP Bank Romania plans 5% staff cut in 2009

OTP Bank's Romanian unit plans to cut 5% of its staff next year because of the difficult economic circumstances, OTP Bank Romania CEO László Diósi said in Thursday's issue of Romanian business journal Business Standard.

OTP Bank Romania could open five new branches next year, but jobs will still be cut because of the centralization of some tasks, Diósi said.

OTP Bank Romania employs 1,100 staff at 105 branches.

Demand for staff was high and new hires could expect an accelerated career track in Romania's banking and financial services sector until September, when the segment “took a 180-degree turn,” Diósi said. Wages in the sector are expected to be frozen, he added.

This year, OTP Bank Romania's payroll costs rose 7%.

OTP Bank acquired its Romanian unit in July 2004 for $47.5 million. The bank turned profitable for the first time in Q3 2008, booking after-tax profit of HUF 931 million. In Q1-Q3, the bank had losses of HUF 273 million, an improvement over losses of HUF 2.2 billion in the same period a year earlier. (MTI – Econews)