Hungarian OTP Bank turns to loss after nine months in Romania on higher provisions

Hungarian lender OTP Bank posted a loss in Romania in the first nine months of the year, after making a profit during the same period of 2011.Higher costs for provisions ate into OTP Bank Romania's profit and took it into loss, minus EUR 7 million. A decline in revenues was also recorded during this period. Revenues from interest were down 32 percent, to some EUR 11.3 million while revenues from fees and commissions were also down by 43 percent, to EUR 1.1 million. The loss widened in the third quarter of the year, as the bank posted profit in the first half. Provisions were up 43 percent, to some EUR 24.4 million. The bank's total assets were also a bit down – 3 percent, to EUR 1.5 billion. The volume of the bank's non-performing loans was 23 percent higher than end – September 2011, some EUR 208 million. OTP Bank runs 97 units in Romania. The bank has been closing down some regional units in Romania in recent months. editor@romania-insider.com (photo source: Wikimedia Commons)