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OTP's banking unit in Montenegro turns to profit in 2018

Author Radomir Ralev
OTP's banking unit in Montenegro turns to profit in 2018 Source: Crnogorska Komercijalna Banka

PODGORICA (Montenegro), March 1 (SeeNews) – Hungarian financial services group OTP said on Friday its Montenegrin unit, Crnogorska Komercijalna Banka, turned to an after-tax profit without dividends and net cash transfer of 2.2 billion forints ($7.9 million/7 million euro) in 2018, from a loss of 155 million forints in 2017.

Crnogorska Komercijalna Banka's net interest income rose 20% to 7.5 billion forints, while its net fee and commission income declined 39% to 3.2 billion forints, OTP said in an annual financial report.

On Thursday, OTP said that it has agreed to acquire a 90.56% in Societe Generale banka Montenegro - the country's fourth-largest lender. Societe Generale Montenegro will soon be part of the collaboration agreement which was signed between SG and OTP Bank that includes the provision of mutual services in various fields, such as investment banking, financing cash, capital markets and liquidity management. 

Gross loans of OTP's Montenegrin unit rose 13% compared to the end-2017 figure to 157 billion forints, while total assets increased 14% to 224.9 billion forints as at the end of December.

In Southeast Europe, OTP is also present in Bulgaria, Romania, Serbia and Croatia.

(1 euro = 315.847 HUF)