August 14, 2014 / 10:57 PM / 3 years ago

OTP posts record 2nd-qtr loss on Hungary, Ukraine provisions

2 Min Read

BUDAPEST, Aug 15 (Reuters) - Hungary's OTP Bank on Friday posted a second-quarter net loss of 153.15 billion forints ($655.47 million), its deepest quarterly loss on record, as provisioning for losses at home and in Ukraine caused the bank to sink deep into the red.

OTP, which turned a 109 billion forint operating profit in the quarter, in line with recent quarters, set aside 176.1 billion forints from its bottom line as it prepared for a Hungarian government measure that forces banks to refund loan clients, the bank said in a statement posted on the Budapest Stock Exchange website.

The bank also wrote down its entire goodwill in Ukraine and raised its non-performing loan coverage to 90 percent in Crimea, which hit its bottom line by a combined 20 billion forints.

The bank said its capital position was still stable, but its solvency margin narrowed to 17.8 percent from 20.2 percent in the first quarter, compared to an 8 percent regulatory minimum. Its non-performing loan rate climbed to 21.6 percent of the loan book from 21.2 percent previously. (US$1 = 233.6500 Hungarian forint) (Reporting by Marton Dunai)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below