Hungarian lender OTP Bank records higher loss in Romania in H1 2013 on increasing risk costs

Hungarian lender OTP Bank posted a loss of some EUR 7.6 million (HUF 2.26 billion) in Romania in the first half of the year, almost nine times higher compared to the same period in 2012. The negative result was mainly triggered by deteriorating operating result and higher risk costs, reads the bank’s report. OTB Bank Romania’s operating result declined by 17 percent in the first six months of the year over the same period in 2012, while total risk costs went up 36 percent year-on-year. The operating expenses also went down 3 percent in H1 2013 over the first six months of 2012, mainly due to lower rental fees, training costs and savings in personnel expenses, according to the bank. The bank’s total income amounted to around EUR 32.6 million (HUF 9.6 billion) in the first half of the year, an 8 percent year-on-year decrease, while the net interest revenues went down 10 percent. The half-year net fee and commission income went up 11 percent in first six months of 2013 on the same period in 2012, mainly due to higher deposit and transaction-related fee revenues. OTP Bank Romania’s total assets also went up 3 percent in the first half of 2013 compared to 2012. In Q2 2013, OTP Bank Romania recorded a loss of some EUR 5.2 million (HUF 1.5 billion), compared to a EUR 3.1 million (HUF 921 million) profit recorded in the same period in 2012. The operating profit went up 26 percent year-on-year, while the operating expenses decreased by 6 percent. The bank’s total revenues in the second quarter of 2013 amounted to around EUR 17 million (HUF 5.1 billion), up 3 percent over the same period last year. At June 30, 2013, OTP Bank had 89 branches in Romania, 125 ATMs and over 1,200 POS terminals. Irina Popescu, irina.popescu@romania-insider.com (photo source: Wikimedia Commons)