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OTP's Bulgarian unit posts jump in H1 after-tax profit, revenue

OTP's Bulgarian unit posts jump in H1 after-tax profit, revenue wrangler/

SOFIA (Bulgaria), August 9 (SeeNews) - Hungarian financial services group OTP said on Friday that the consolidated after-tax profit of its Bulgarian  unit DSK Group soared 42% on the year to 34.2 billion Hungarian forints ($117.9 million/105.4 million euro) in the first half of 2019, supported by a rise in revenue.

DSK Group's total income jumped by 45% on the year to 76.2 billion forints in the first six months of 2019, as net interest income grew 51% to 51.9 billion forints, OTP said in an interim financial report.

The Bulgarian banking group's net fee and commission income rose 42% year-on-year to 20.3 billion forints, while other net non-interest income added 7% to 3.9 billion forints.

DSK Group's operating expenses increased by 45% to 34.4 billion forints in the review period.

Gross customer loans totalled 2.22 trillion forints at the end of June, up 65% compared to the end of 2018. Deposits from customers increased by 50% compared to the end of last year, reaching 2.82 trillion forints at the end of June.

DSK Group's total assets amounted to 3.63 trillion forints at the end of June, 53% more than at the end of last year.

"2019 1H financial statements already included the full first half contribution from Expressbank and its subsidiaries within DSK Group," OTP said.

Sofia-based DSK Bank, owned by OTP, acquired Bulgaria's Expressbank in a deal concludedclosed financially on January 15, 2019.

Expressbank was Bulgaria's seventh largest lender by assets at the end of May, according to central bank data. DSK Bank was the second biggest bank in Bulgaria by assets at the time.   

Expressbank was renamed from Societe Generale Expressbank earlier this year, after DSK Bank completed its acquisition from France's Societe Generale Group. Besides Expressbank, DSK Bank also acquired indirect control over the bank's units Societe Generale Factoring, Sogelease Bulgaria and Regional Urban Development Fund, as well as direct control over insurer Sogelife Bulgaria. 

( 1 euro = 324.36 Hungarian forints)