The deteriorating conditions in the financial markets, an increasing number of companies filing for bankruptcy, and the restructuring of bad loans incurred in the past caused the Bank to report an operating loss for the first three quarters of 2012. For the period from 1 January to 30 September, OTP banka d.d. posted a pre-tax loss from continuing operations of €101,483,000, with its profit before provisions and impairment losses standing at €30,434,000. The net loss amounted to €100,254,000. Net interest income totalled €56.4 million, which accounted for 62.5% of the revised annual projection. The interest margin, calculated on the average total assets, stood at 1.60%, which was 0.30 percentage points less than originally planned. Net fee and commission income reached €31.2 million, or 78.3% of the annual projection. Net fees and commissions covered 52.3% of the Bank’s administration costs, including depreciation and amortisation. The Bank’s results continued to be adversely affected by high loan loss provisions, reflecting deterioration in its loan portfolio. In the first nine months of the year, the Bank recorded net impairment losses and provisions of €131.5 million, which made up 88.7% of the annual projection.
The Bank’s total assets amounted to €4,574.3 million, down €236.3 million, or 4.9%, from the 2011 year-end. As of the end of August, the Bank’s market share in total assets was 9.8%, the same as at the end of 2011.
Net loans and advances to customers totalled €3,108.2 million, a decrease of €233.9 million relative to the end of 2011. The Bank’s market share in this segment decreased in the first eight months of the year by 0.4 percentage points to reach 9.7% at the end of August. Loans and deposits from customers amounted to €2,926.9 million at the end of September, with the Bank’s market share remaining flat at 12.5% in this segment. The customer net loans-to-deposits ratio fell by 2.9 percentage points to 106.2%.
At the end of September, the Bank’s total equity was €283.6 million, down 24.1%, or €90.2 million, from the end of 2011, primarily as a result of loss incurred in the period from January to September. The Bank’s total capital adequacy ratio as of 30 September 2012 was 8.79%.
