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OTP Bank Romania's H1 after-tax profit soars on drop in provisions

OTP Bank Romania's H1 after-tax profit soars on drop in provisions OTP Bank Author (OTP.hu) License: all rights reserved.

BUCHAREST (Romania), August 10 (SeeNews) - The after-tax profit of OTP Bank Romania grew by an annual 59% to 1.37 billion Hungarian forints ($4.9 million/4.2 million euro) in the first half of 2018 due to a sharp decline in provisions, the bank's parent, Hungarian financial services group OTP, said on Friday.

The Romanian lender's total provisions decreased 41% year-on-year to 2.59 billion forints in the first six months of 2018, OTP said in an interim financial statement.

Provsisions for possible loan losses decreased 38% on the year to 2.30 billion forints, while other provisions dropped 60% to 282 million forints.

OTP Bank Romania's total income edged down 1% year-on-year to 14.07 billion forints in the review period.

Net interest income fell 2% to 10.54 billion forints, while net fee and commission income rose 12% to 1.71 billion forints.

The lender's operating expenses increased 13% to 9.52 billion forints.

OTP Bank Romania's gross customer loans increased 9% compared to the end of 2017 to 581.30 billion forints at the end of June, while deposits from customers rose 17% to 394.97 billion forints.

The bank's total assets amounted to 711.04 billion forints at the end of June, up 14% compared to the end of 2017.

(1 euro = 322.68 Hungarian forints)

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