OTP Bank Romania’s profit reached 27 million RON, up by 50 percent in first semester
OTP Bank Romania has registered an after tax profit of RON 27 million during the first half of 2021, marking an increase of nearly 50 percent compared to the first half of last year.
“The steps we are committedly taking in our national growth program are confirmed by the results of these first six months of the year. The market expresses a solid need for financing, and our investment programs in developing and increasing the OTP Bank team, in the operational area, digitalization, or product development, have exactly this purpose, to attract new customers and to constantly adapt the offer. The correlation is direct, with good results in terms of new loans or the high-performing loans growth, where we are already in line to reach the growth target for this year”, said Gyula Fatér, CEO OTP Bank Romania.
Operating profit in the first six months of the year reached RON 43 million, on a downward trend compared to the same period in 2020, because of the increase in operating expenses by 26 percent as result of the Apollo growth strategy launched in 2019. Thus, the 11 percent increase in the number of employees led to higher personnel expenses, while the annual contribution to the Deposit Protection Fund, paid in the first quarter of the year, added about RON 21 million (higher by 8.4 million than the previous year) to the total expenses.
The net interest income increased by 3 percent, to a total of RON 232 million. These were supported by the sustained development of high-performing loan volumes but mitigated by the gradual reduction of net interest margins. An important factor is also the net fees and commissions, which grew by 11 percent in the second quarter.
In the first quarter, total risk cost amounted to RON 10 million, owing to lower credit risk costs than in the base periods and the release of other provisions. The change in the risk calculation methodology brought with it an increase of RON 14 million in the second quarter of this year.
The performing loan volumes increased by 16 percent in the first semester of 2021, being supported by an increase in new loans +158 percent, mortgages +116 percent or by the solid contribution of the corporate segment +9 percent from year to year.