OTP Romania posts EUR 23mn loss in 2010.

By bne IntelliNews March 8, 2011
The local subsidiary of Hungarian financial group OTP, OTP Romania, posted a EUR 23.2mn loss on high provisions, generated by its exposure to eight large projects, Wall-Street reported, quoting OTP Bank Romania CEO, Laszlo Diosi. The banks total assets increased by 16% y/y to EUR 1.5bn at the end of the year. Diosi forecast that the bank will return to profit in 2011. The stock of non-performing loans increased 3.5-fold y/y to EUR 125mn at the end of 2010, reaching 10.6% of the total stock of loans. The risk cost reached 5.13% of the stock of loans last year. The provisions alone, not including collaterals, covered 70.9% of the bad loans. The bank expects to use no more than half of the provisions, because the collaterals are sound enough and would cover in some cases 100% of the exposure.

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