Hungary’s OTP Bank doubles net profit in Romania
OTP Bank Romania, the local division of the Hungarian group OTP, registered an after-tax profit of RON 58 million (EUR 11.7 mln) in 2021, more than double the result of the previous year.
The higher net profit was mainly due to a 68% drop in the total risk cost, which compensated for the 24% decline in the operating profit, generated by higher operating expenses.
The better part of these costs stemmed from the bank’s growth strategy launched in 2019, higher personnel expenses following an 8% y-o-y growth of the average number of employees and also wage hikes.
“The 2021 results represent a clear picture of our state of development. We are following a journey started in 2019, which, step by step, brings us closer to our market position objective. As we look at the business activity, we are gaining in market share and marking positive end of year results, with both lending and savings volumes growing dynamically, by two digits,” said Gyula Fatér, CEO OTP Bank Romania.
OTP Bank Romania increased its total assets by 24% to RON 19.3 bln (EUR 3.9 bln) at the end of 2021.
The gross customer loans increased by 21%, while the deposits went up by 18% last year, mainly supported by the corporate segment.
(Photo courtesy of the company)