OTP Bank Romania ups profit 12% in 2016

Hungarian banking group OTP Bank recorded a net profit of RON 24 million (EUR 5.3 million) in Romania last year, up 12% over 2015. The profit growth contrasted with the lower gross income and loan portfolio, according to data published by the parent bank in Budapest. The total revenues of OTP dropped by 4% to RON 384 million (EUR 84.7 million) because of lower revenues from interest rates and lower commission income. Net interest earnings decreased by 11% to RON 293 million (EUR 64.6 million), while the fee and commission income decreased by 14% to RON 47 million (EUR 10.3 million). Meanwhile, the bank continued to reduce its costs. The operating expenses decreased by 16% compared to 2015, reaching RON 261 million (EUR 57.5 million). On the other side, OTP rose its provisions by over 40% last year to EUR 20.2 million. The bank’s loan portfolio amounted to RON 7.7 billion (EUR 1.7 billion) at the end of December 2016, down 4% over the same period in 2015. editor@romania-insider.com