Due to the crisis in Ukraine Hungary’s OTP Bank incurred 678.4 million hryvnia losses there in the first quarter, which translate into nearly HUF 13.4 billion at current exchange rates, the bank has announced on Friday. The comprehensive IFRS figures will be released by the group on 16 May.
In a statement released in Ukrainian language the bank stated that that its results were weighed down by the negative exchange rate changes (hryvnia depreciation) and rising provisions created for higher lending risks.
Even in difficult times the bank strives to balance out its assets and liabilities and maintain its high capital adequacy ratio, which stood at 15.55% on 1 April against the required minimum of 10%.
Despite the sizeable losses OTP Ukraine has not recorded for a long time the depreciation of the local currency had a favourable impact on revenues and portfolios in hryvnia terms. Net interest income grew UAH 140.4 million to UAH 609.9 m and net fee and commission income totalled UAH 70.2 m.
The bank’s loan portfolio grew UAH 1.8 bn yr/yr, mainly over an expansion in corporate loans. Total assets went up to UAH 21.2 bn from UAH 18.7 bn by end-March. Deposits increased to UAH 10.4 bn from UAH 9.5 bn. In forint terms the above data would show a decline, as the UAH weakened by some 25% versus the HUF since the end of 2013.
Charting is displayed using TradingView's technology, a platform, where you can build advanced charts,
spot upcoming trends in the stock screener, and find inspiration in multiple trading ideas
