Dep. CEO: OTP Bank will not withdraw from E. Ukraine
Following the release of OTP Bank’s first quarter earnings report showing disappointing results due in large part to heavy losses taken in its Ukrainian operations, deputy CEO László Bencsik sought to reassure today that the bank does not expect to pull out of eastern Ukrainian counties Donetsk and Luhansk, as in Crimea.
OTP Bank’s corporate clients have a broad base of operations in Ukraine, Bencsik said, and “there is a good chance” that OTP banking ties will be maintained in the long term.
Said Q1 earnings report showed that OTP booked a HUF 7.5 billion loss in Ukraine and a HUF 4.7 billion loss in Russia. OTP noted the “high probability of a fragile business environment for the rest of the year” in Ukraine and put the unit’s potential full-year loss at HUF 10 billion to HUF 20 billion.
OTP Bank currently operates 134 branches in Ukraine, including 11 branches in Donetsk and six in Luhansk. Bencsik also stated today that two branches in Donetsk had been temporarily suspended. In April, OTP Bank closed eight branches in the Crimea region due to the ongoing crisis conditions there.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.