OTP Bank Romania posted a profit of 6.8 million Euro in the first nine months of 2017

OTP Bank Romania registered an after-tax profit of 6.8 million Euro, in the first nine months of the year, decreasing by three per cent year over year. The bank returned to profit in the third quarter, with four million Euro earnings, after a loss of 1.4 million Euro registered in Q2.

2017-11-15 12:30:44

In the first nine months of 2017, the operating profit surged by 33 per cent year over year, because of lower operating expenses (- four per cent) and eight per cent increase in total income. On the other hand, the operating profit declined by four per cent in the third quarter, due to higher administrative expenses.

Net interest income had a positive trend. It improved by nine per cent compared to the previous year, supported by increasing volume of performing loans. Total risk costs increased by 44 per cent in the first nine months of 2017, due to higher provisions in the second quarter. However, the total provisions dropped by 65 per cent in Q3 because of the base effect and favourable credit quality trends. Thus, ROE improved and exceeded 11 per cent in Q3.

Overall, the performing loans volumes increased by 11 per cent year over year and by four per cent quarter over quarter. The non-performing loans ratio was 15.5 per cent at the end of Q3 (-2.3 percentage points year over year, -1.1 percentage points quarter over quarter).

As for new loan disbursements, the cash loan sales improved by 17 per cent year over year in local currency terms. The new disbursement of mortgage loans declined after the strong Q2, however it improved by 80 per cent in local currency in the first nine months year over year.