OTP Romania reports profit and 13.4% ROE in Jan-Sept

The Romanian subsidiary of the Hungarian group OTP, OTP Bank Romania, said it achieved a consolidated net profit of RON 236 million in the first nine months of 2023 compared to a RON 15 million loss in the same period last year. It also announced a return on equity ratio of 13.4%.

The net interest income increased by 6% y/y to RON 513 million as the level of gross customer loans dropped by 2% ytd to RON 14.8 billion.

The bank's total assets increased by only 1% ytd to RON 21.1 billion, but the total shareholder equity advanced by 14% ytd to RON 2.56 billion.

OTP Bank initiated a process for selling its Romanian subsidiary, and Banca Transilvania is the main bidder.

OTP reportedly lowered the price asked for its Romanian subsidiary to EUR 360 million (RON 1.8 billion), significantly below the book value of shareholders' equity once circulated as the starting price for the sale negotiations but still above the EUR 300 million offer made by Banca Transilvania, Profit.ro announced in late November. "No decision has been made yet," said Gyula Fater, CEO of OTP Bank, in an interview for Ziarul Financiar one day later.

(Photo source: OTP Bank Romania)