The Romanian unit of Hungary's OTP Bank, OTP Bank Romania, which has made losses since 2005 because of costly developments, could turn profitable in the third quarter.
OTP Bank Romania will make up for its first-half losses by the end of the year and could turn a small profit, CEO László Diósi said in Tuesday's issue of Romanian business daily Ziarul Financiar. Next year profits will be bigger, he added.
OTP Bank Romania had losses of about €5 million in H1, about 38% less - calculated in forints - than in the same period a year earlier.
The local press reported last week that OTP Bank is considering parting with its unprofitable Romanian unit, but OTP Bank Romania denied its parent had any such plans.
OTP Bank deputy-CEO László Urbán told local paper Kornika that the unit is not up for sale. He said that expenditures fell under revenue at OTP Bank Romania for the first time in H1.
OTP Bank entered the Romanian market with its purchase of RoBank in 2004 for $47.5 million. It injected €10 million into the bank at the start and has raised capital several times since. It changed the bank's name to OTP Bank Romania and announced ambitious plans to gain a 4%-5% market share. (MTI – Econews)