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OTP Bank Ukrainian unit racks up big losses

OTP Bank's unit in Ukraine, JSC OTP Bank, had a loss of UAH 435.3 million (€38.6 million) in 2009 as provisioning offset big rises in net income from interest and commissions, JSC OTP Bank said, citing preliminary data calculated using local accounting standards.

Net interest income climbed 67% to UAH 2.49 billion and net commission income rose 70% to UAH 286 million, the bank said. But reserves for the delinquent portfolio climbed 31% to UAH 1.81 billion.

Income before provisioning because of the “undermined payment moral and capabilities of our debtors” came to UAH 3.0 billion, up 25% from the previous year.

Tight cost controls and “readjusted headcount structure” brought administrative costs of the bank to UAH 1.36 billion. JSC OTP Bank had total assets of UAH 29.4 billion on December 31, 2009. Stock of loans fell 8% to UAH 29 billion.

Corporate loan stock dropped 9% to UAH 13.3 billion and retail loan stock was down 7% at UAH 15.7 billion. Stock of deposits rose 35% to UAH 3.85 billion. The bank's capital adequacy ratio was 17.77%, well over the 10% requirement. The liquidity ratio was 72.6%, also well above the 40% minimum.

JSC OTP Bank is Ukraine's seventh-biggest bank in terms of assets, CEO Dmitrij Zinkov told MTI in January. There are more than 170 banks in Ukraine. (MTI – Econews)