OTP Bank Romania announced its first quarter loss

Operating profit in the first quarter of 2022 reached 35 million lei. This value is several times higher than the operating result for the same period last year, but 4 percent lower than in the last quarter of 2021.

Annual contributions to deposit insurance and resolution funds, which were fully accounted for in the first quarter, played a significant role in the increase in operating expenses.

Excluding these contributions, operating income increased by more than 70 percent in the first quarter of 2022 compared to the last quarter of 2021.

Compared to the first quarter of 2021, most of the increase in costs can be explained by the bank’s growth strategy launched in 2019, and a number of developments and investments have taken place accordingly. In addition, staff costs increased 3 percent year-over-year.

Gyula Fatér, CEO of OTP Bank Romania he said that, like interest income, there had been a steady increase in loans and deposits, which would not have been possible without significant spending.

Net interest income increased by 31 percent to NLG 147 million. Quarterly dynamics were supported by a 4% increase in performing loans and a 19 basis point improvement in net interest margin compared to the previous quarter.

Year-on-year, non-performing loans grew by 22 percent in the first quarter, driven mainly by a 6 percent increase in corporate loans and a 12 percent increase in real estate loans and personal loans.

The volume of FX-adjusted deposits increased by 8% compared to the first three months of the previous year.

According to local reporting standards, the bank’s assets reached 18.5 billion lei, an 18 percent increase over March 2021.

Source: Portfolio.hu – Bank by www.portfolio.hu.

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