OTP Bank Romania reports 10 million RON loss for first quarter

OTP Group announces the financial results for the first quarter of 2020. According to the report OTP Bank Romania has registered a loss of 10.7 million RON in the first three months of the year. The evolution was influenced by the threefold increase of risk costs, in the context of the Covid-19 epidemic.

Operating profit of the first three months of the year decreased slightly, at 36 million RON, following the increase of 12 percent in total income, compared to the same time frame of last year, but also following a 18 percent increase in operating expenses.

The performing loan volumes, FX-adjusted, increased by 20 percent in the first three months, supported by SMEs lending (+30 percent), robust mortgage demand (+22 percent), and corporate lending increase (+15 percent).

Lending activity has been strongly supported in the first quarter of 2020, and new sales of real estate loans have grown by 25 percent, while the growth rate of loans for customers in the Corporate segment increased by 27 percent.

According to local regulations, the Bank´s standalone total assets posted 13.2 billion RON, increasing by 17 percent compared to the end of March 2019, while the after-tax profit was of 22 million RON.