OTP Bank Romania returns to profit in Q3

Local lender OTP Bank Romania, part of the Hungarian group OTP, recorded a profit of RON 18.3 million (EUR 4 million) in the third quarter of this year, compared to a loss of RON 6.6 million (EUR 1.4 million) in the second quarter. The bank thus saw a profit after tax of RON 30.8 million (EUR 6.8 million) in the first nine months of this year, down 3% year-on-year. The operating profit increased by 33% between January and September as a result of lower operating expenses (-4%) and an increase in the total revenues by 8%. On the other hand, the operating profit declined by 4% in the third quarter, as compared to the previous quarter, as a result of the increase in administrative expenses. Net interest income saw a positive trend, with a 9% increase, driven by higher lending. The non-performing loan ratio dropped to 15.5% in the third quarter of this year, down 2.3 percentage points year-on-year. OTP Bank Romania signed an agreement in July to take over Banca Romaneasca from the National Bank of Greece. The transaction will be completed early next year. editor@romania-insider.com