OTP Bank Romania, one of Romania’s mid-sized banks said its net profit for the nine months ending September 30 stood at 779 million forints (€2.7 million), versus 196 million forints loss in the same period of last year, despite the four-fold increase in impairment charged against loans.
The bank’s loan loss reserves for the first nine months reached 3.7 billion forints (€13.6 million), 288% above year-ago level of 956 million forints.
Of total impairment charges and credit provisions for 2009, 1.7 billion forints represent risk costs put aside in third quarter only.
Total revenues jumped 31% in the period under review year-on-year, while operating expenses dropped 2%. Operating profit climbed nearly four times, the bank said.
OTP has continued the loan restructuring process in third quarter, reaching 9% share in retail portfolio, from 6%in second quarter.
Overall, the bank restructured 10% of its total loan book in Jul-Sep period 2009, small-business loans and corporate credits included.
OTP Bank Romania’s assets totaled 369.6 billion forints (€1.36 billion), down 2% from mid-year level, but 3% more than a year earlier.
The bank has a network of 106 outlets and employs 1,081. OTP group’s profit plummeted 57% in the first nine months, to 130 billion forints (€480 million).
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