OTP Bank Romania reported its consolidated net profit contracted by 69% year-on-year to RON 17 mln (EUR 3.5 mln) in the first six months of the year.
Despite rising profit from operations, the bank's bottom line deteriorated because of the 142% rise in the risk costs to RON 76 mln, out of which RON 59 mln prompted by the expected effects of the economic crisis generated by the coronavirus pandemic.
The operating profit for the first six months of the year increased by 5% to RON 92 mln, due to a 14% increase in total revenues, compared to the same period last year, while operating expenses rose by 18%.
The volume of performing loans, adjusted for the exchange rate, increased by 18% year-on-year (well above the market's average of 4.1%), supported by a strong advance in lending to the SME segment (+27%), higher demand for real estate loans (+18%), and growing financing request from the corporate segment (+16%).
The bank's assets reached RON 13.6 bln (EUR 2.8 bln), 16% more than at the end of June 2019.
(Photo source: the company)