The Ukrainian unit of Hungary's OTP Bank expects portfolio quality to moderately deteriorate this year but the bank will not need more new capital in 2010, its chief executive said.
CEO Dmitry Zinkov told Reuters in an interview that the bank did not expect its loan book to grow in 2010 but would continue to aim to boost commission income by acquiring new customers.
OTP's Ukrainian unit received about $100 million in the form of share capital and also subordinated loans twice last year. Its capital adequacy ratio is 17.77%, well above the regulatory minimum of 10%, the bank said last week.
The bank reported last week that it made a net loss of 435 million hryvnias ($54 million) in 2009 against a profit of 77 million hryvnias in 2008, based on Ukrainian standards. The bank, eighth largest in Ukraine, said it slipped into the red because it had to boost provisions for bad loans.
Zinkov declined to give a projection for non-performing loan rates for 2010 as this will be published as part of OTP Group's annual report later in this quarter, he said. (Reuters)