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OTP Bulgarian unit profit slips 18% in H1

Profit of Bulgaria’s DSK Bank, a unit of Hungary’s OTP Bank, fell 18% to BGN 65.3 million (€32.7 million) in the first half from the same period a year earlier, but the smaller-than-expected drop was not as big as the contraction of Bulgaria’s bank sector as a whole, DSK Bank CEO Violina Marinova told MTI.

First-half profit was better than expected thanks to high revenue from banking activities and low operating costs, Marinova said.

DSK Bank was Bulgaria’s second biggest bank based on total assets at the end of June. It retained its market share for both loans and deposits, and its liquidity and capital positions were stable, Marinova said. The bank was named “Bank of the Year” and “Most Efficient Bank” by business daily Pari, she added.

DSK Bank’s share of the lending market grew by 0.14 percentage point in H1,Marinova said. At the end of last year, the bank had 29.4% market share with some 3 million clients.

Stock of retail loans increased 1.24% in H1, even as stock for the market as a whole inched down 0.2%.

DSK Bank’s capital adequacy ratio was 25.3%.

DSK Bank will focus on maintaining its stability, improving efficiency and guarding the quality of its loan portfolio as the economic situation deteriorates, Marinova said.

DSK Bank has one of the highest level of risk reserves among Bulgarian banks, Marionva showed. Levels are well over that required by regulations, a stress test showed, she added. (MTI – Econews)