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OTP profit on track, risk costs may fall soon

Hungary's OTP Bank remains on track to meets its 2009 profit target and as the global recovery picks up pace, its risk costs could begin falling as early as the second quarter, CFO László Bencsik said.

OTP, Central Europe's biggest independent bank with capitalization of $8.1 billion, expects risk provisions in the second half to remain in line with first half figures. If market condition do not change significantly, a decline could start early next year, Bencsik told the Reuters Central European Investment Summit.

OTP earlier said it expected to earn a net profit in excess of HUF 150 billion ($815.7 million) which will enhance its €4.3 billion liquidity buffer and position it for either organic or acquisitive growth. (Reuters)