OTP posts 7 million-euro losses in Q3

OTP Bank Romania, the local branch of the biggest Hungarian financial group, posted 7.6 million euros in losses in the third quarter, the same as in the previous quarter, considering it continued to set aside significant provisions.

Whereas problems in the summer were caused by a number of several high-exposure real estate developers going insolvent, the pressure is now coming from the faster deterioration of mortgage loans.
The bank set aside 15.9 million euros in provisions in the third quarter, the same as in the previous quarter.
Overall, the share of loans overdue by more than 90 days went up to 9.6% of the total portfolio in September, from 8.4% in June and 2.3% in September 2009.
Although the need for high provisions has been causing losses, OTP is trying to boost income from operations.
Operating income stood at almost 24 million euros in the first three quarters, compared with 17 million euros in the same time last year. The growth was made possible by the increase in interest and fee income.