OTP Bank Romania announces 24.4 M lei in mid-year profit


OTP Bank Romania recorded 24.4 million lei in after-tax profit in the six months of this year, according to a bank release on Monday.

The bank’s operating profit surged 57 percent year-over-year to 71.2 million lei (1 euro = 4.4 lei).

According to the original report filed to the Budapest Stock Exchange, the Romanian subsidiary of OTP Group ended the first half-year in overall assets amounting to 6.581 billion lei.

Corporate credit climbed 4 percent year-on-year and was up 3 percent from one quarter to another. The deposits attracted from the retail clients have remained stable as share of the total deposits, the bank said.

The portfolio quality kept the stabilization trend, with the bad loan credit percentage keeping modest similar to Jan.-June of last year. According to the filed information, OTP Bank Romania by mid-year had more than 90-days overdue credit totaling 1.115 billion lei, accounting for 18.3 percent of the extended credit and being 76.8 percent covered by provisions.

OTP Bank Romania on this July 30 signed in Bucharest a contract for the purchase of 100 percent of the stocks of Banco Comercial Portugues Romanian subsidiary, Millennium Bank Romania. The transaction amounted at 39 million euros.

With assets totalling 2.83 billion lei (some 635 million euros) at end-December 2013, Millennium Bank ranked 22nd among the Romanian banking institutions with 0.8 percent market share. Following the acquisition, OTP Bank Romania will account for 2.1 percent of the local market and will climb to No. 11 in the Romanian bank rankings. As a result of the transaction, OTP Bank Romania will operate around 150 branches and more than 160 ATMs for its nearly 400,000 individual and corporate clients. The final integration process is estimated to take a year.

 

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