OTP banka continues to deliver profitable results

For the six-month period ended 30 June 2014, OTP banka reported a pre-tax, pre-provision profit of €37.9 million, which was more than three times the figure reported for the comparable period of 2013 (€12.2 million). The net interest income generated by the Bank in the first half of the year totalled €44.1 million, up from €31.8 million reported for the same period last year. The year-on-year increase in the net interest income was the result of a nearly 50% decline in interest expenses, partially offset by a 13.1% decrease in interest income.

The interest margin, calculated on the average total assets, stood at 2.30%, against 1.44% recorded in the same period last year. Improved results were also noted in fee-earning transactions: net fees and commissions amounted to €21.1 million in the first half of the year (2013: €20.2 million), while other non-interest income reached €8.2 million (2013: a loss of €0.7 million), the bulk of which was earned on the sale of securities.

In its business development, OTP banka fully complies with the commitments set out in the restructuring programme, as evidenced by data on the reduction of its operating costs and total assets. Operating costs incurred by OTP banka in the first half of the year were 9.3% below those reported for the first half of 2013, while its staff costs saw a year-on-year contraction of 7%, principally due to a reduction of 96 in the number of staff. As of 30 June 2014, OTP banka´s total assets were €3,671.5 million, down €238.5 million, or 6.1%, on the 2013 year-end figure.

At the end of June 2014, OTP banka´s market share in loans to and deposits from the non-banking sector stood at 7.4% and 10.2%, respectively, of the Slovene banking system. The customer net loan-to-deposit (LTD) ratio fell in the first six months of the year by almost seven percentage points to reach 70.37% at the end of June 2014. Irrespective of this minor deterioration in the LTD ratio, OTP banka remains an important provider of first-class financial services to both retail and corporate customers. It is continuously developing new products and services to be able to meet the changing needs of its customers. In accordance with its strategy and the restructuring programme, OTP banka is resolutely continuing its transformation into a bank focused on basic financial services, while at the same time making every effort to further streamline its operations and boost its profitability.