OTP’s Romanian subsidiary boasts 65% higher profit in 2019

OTP Bank, the Romanian subsidiary of the largest banking group in Hungary, reported that its net profit increased by 65% in 2019 compared to 2018, to RON 92 million (some EUR 20 mln). The result does not include the RON 5.4 mln tax on bank assets paid in 2019.

The bank’s total assets reached RON 13.8 billion (EUR 2.88 bln) at the end of 2019, 24.3% more compared to the end of 2018.

OTP Bank Romania reported a 17% increase in its operating profit to RON 179 mln, due to the 22% rise in the total revenues combined with 25% increase in the operating costs.

In 2019, the commercial activity increased significantly, the bank’s report reads, in line with the bank's organic growth strategy. Thus, the volume of new mortgages increased by 74% compared to 2018, while the stock of personal loans increased by 15%. As for the total stock of loans, adjusted to the exchange rate, it increased by 23% year-on-year, supported by solid demand for mortgage loans and for corporate loans.

In 2019, the retail activity and the corporate segment registered a similar advance, of 19% year-on-year.

OTP and Italian group Intesa Sanpaolo Bank are the two bidders that have submitted indicative offers, of similar values, for the acquisition of Garanti Bank Romania - a lender with a market share of 2.27% (end-2018) put up for sale by Spanish group BBVA. However, BBVA was reportedly not happy with the bids.

OTP Bank was ninth in the ranking at the end of 2018, with a market share of 2.45%.

(Photo source: Shutterstock)