OTP ends first half with over 5 million-euro losses

OTP Bank Romania ended the first half with a net loss worth over 5 million euros, most of which was accumulated in the second quarter, due to the increase in credit loss reserves by no less than 4.4 times, as well as to the 31% increase in operating spending. The total revenues of the bank rose by merely 18% in the second quarter, despite the spectacular rise in revenues from charges and fees. The first half loss in forints, however, is 38% lower than a year ago. “The quality of the consumer and SME loan portfolio slightly worsened in the second quarter and the credit risk insurance scheme was cancelled,” the parent bank stated explaining the spectacular rise of reserves to some 5.4 million euros.