OTP Bank Announced 1Q Financial Results
OREANDA-NEWS. On 08 May 2009 was announced, that OTP Bank in the 1st quarter 2009 maintained the positive dynamic of obtaining income. Thus, net interest income of the bank has grown by 35% compared to the previous quarter and reached UAH 664 mln. Operations income increased by 17% and exceeded UAH 1, 2 bln. At the same time, administrative expenses and other operating costs reduced by 8% to UAH 217, 4 mln.
Total assets of the bank in the reported period reduced by 8% to UAH 31 bln. Loan portfolio of the bank reduced by 4% to UAH 30,3 bln. Including volume of loans granted to corporate clients, decreased by 5% to UAH 13, 8 bln., private persons - by 3% to UAH 16,5 bln.
Consequently, total liabilities of the bank decreased by 8% to UAH 26,2 bln. Including the funds of corporate clients reduced by 16% to UAH 5,1bln and deposits of private persons to 15% to UAH 3,6 bln.
"Decrease of bank performance indicators is natural in current conditions" – says the bank’s CEO Dmitry Zinkov. "Tactical activity of the bank today is focused on maintaining of liquidity, ensuring timely execution of all obligations, on smart risk management and ability to find compromises with clients to help them “survive” keeping positive loan history" - underlines Dmitry Zinkov.
The financial result of the bank in the 1st quarter 2009 is negative (UAH -211,7 mln. after tax) The main reason influencing performance result is the substantial amount of loan loss provisions amounted to UAH 738,4 mln. Thus, the volume of accumulated provisions enables the bank to be ready for any unpredicted crises situation, to remain liquid and financially stable.
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