OTP estimates 23% asset rise for Romanian branch

The Hungarians at OTP Bank have made only moderate development plans, for their Romanian branch in 2007, after it saw its assets triple last year.
The assets of OTP Bank Romania are expected to increase by a little over 23% this year, to 238.5 Hungarian forints (equivalent to some 970 million euros). Under the circumstances, the Hungarians estimate that the Romanian branch will be able to slightly increase its market share to 1.6%, against the figure of 1.5% last December. OTP Bank Romania (OBR) finished last year with assets worth 781 million euros, according to the data reported to the NBR.
However, the most important objectives on the agenda of OTP Bank Romania for this year are the development of a private banking division, as well as the restructuring of its treasury department.
According to the documents put together by OTP Bank Hungary for next week’s general meeting, the credit portfolio of the local branch is expected to increase by 60% this year, to 162 billion forints (approximately 660 million euros).
OBR will concentrate on increasing deposits, which are expected to double reaching nearly 83 billion forints (339 million euros).
This trend is in sharp contrast with figures seen in 2006, when the credit portfolio increased by over 300%, in comparison to the sums attracted from clients, which increased by a mere 62%. The fast growth witnessed by funding was also a result of the low starting base. OTP started retail lending operations as late as in the autumn of 2005, after having taken over one of the smallest banks in the system, RoBank, in 2004.
Through an aggressive lending policy (which also included introducing credits in Swiss francs onto the local market for the first time), OBR managed to reach a 3.75% market share on the segment of real estate credits at the end of last year.
The plans revealed by OTP Bank Hungary do not contain any references to the bank’s profitability.