OTP posts 4.5m-euro losses

OTP Bank Romania, the local branch of the Hungarian group OTP, closed last year with net losses standing at some 4.5 million euros. The group revealed its preliminary results for 2005, according to the schedule of sending data to the Stock Exchange in Budapest, where OTP shares are listed. The bank”s results were affected both by its heavy investments and by the increase in provisions in the last quarter of 2005, after the coming into force of NBR norms, which led to credits for individual clients being placed in a different risk category. In the fourth quarter, the bank made provisions worth 1.6 million euros. Officials of the group had actually anticipated a negative result for last year and have recently hinted at the fact that they expect OTP Bank Romania to see losses in the next few years as well, given that they are planning on making massive investments, especially in expanding the network. ZF