OTP Bank Romania reduces loss by a quarter in 2013 on lower risk costs and better operating profit

Hungary’s OTP Bank posted a loss of HUF 4.1 billion (some EUR 13.9 million) in Romania in 2013, down 25 percent from HUF 5.5 billion posted the year before, reads the lender’s report. The reduced loss was mainly due to the improving operating profit and lower risk costs. In the fourth quarter of last year, the bank posted a loss of HUF 2.5 billion (over EUR 8 million), a 31 percent decrease year-on-year. The lender’s annual operating result advanced by 10 percent, “reflecting both the strict cost control pursued by the bank and the 3 percent increase in total revenues”. The operating expenses went down 1 percent year-on-year in 2013, to HUF 13.2 billion (over EUR 44 million). OTP Bank Romania’s total income went up three percent year-on-year in 2013, to HUF 20.3 billion (some EUR 68 million), while total risk costs declined by 10 percent. In Q4 2013, the bank had an operating profit of some HUF two billion (EUR 6.7 million), up 39 percent year-on-year, while the total income increased by 15 percent. The operating expenses also went up four percent year-on-year in the fourth quarter of 2013, while the risk costs decreased by 20 percent. In the last quarter the number of branches declined by 3 units to 84, according to the report. Irina Popescu, irina.popescu@romania-insider.com