OTP Bank, the Romanian subsidiary of the largest Hungarian banking group, recorded a loss of RON 6.6 million (EUR 1.4 million) in the second quarter of the year, according to the group’s data.

By comparison, the local bank saw a profit of RON 19 million (EUR 4.1 million) in the first three months of this year.

Overall, the bank’s net profit amounted to RON 12.6 million (EUR 2.7 million) in the first six months of the year. OTP Bank had to pay a profit tax of RON 7.2 million (EUR 1.5 million) during this period.

The loss in the second quarter was mainly caused by the increase in risk costs as a result of the change in the provisioning policy, according to OTP. The local bank made provisions of RON 64.5 million (EUR 14.1 million) in the first six months, up 85% over the same period last year.

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editor@romania-insider.com