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BRIEF-Hungary's OTP Bank posts robust Q3 profit as loans grow
November 10, 2017 / 5:52 AM / a month ago

BRIEF-Hungary's OTP Bank posts robust Q3 profit as loans grow

Nov 10 (Reuters) - Hungary’s OTP Bank says in Q3 earnings report published on Budapest Stock Exchange web site

* Net profit of 79.33 billion forints ($296 million), beating forecast of HUF 70.14 billion

* In line with HUF 80.7 billion Q2, higher than HUF 68.75 billion in Q3 last year

* ROE 20.3 pct 22 pct in Q2 and 20.8 pct in Q3 2016

* Surprise comes as tighter interest rate margin is offset by lower risk costs, dynamic loan growth

* Organic loan growth 10 pct in past year, two completed and two ongoing acquisitions add another 25 pct to that

* Loan book up 22 pct at end-Q3

* Risk costs in quarter HUF 4.3 bln, 0.05 pct of loan book

* Interest rate margin 4.42 pct, down 0.4 pct point y/y

* Dynamic growth strategy to continue amid favourable environment

* Beyond capital required for organic growth bank to allocate significant part of generated excess capital for further acquisitions.

* Subject to planned and executed acquisitions, organic growth and profitability, bank to increase annual dividend

* Total revenue up 10 pct y/y, interest revenue up 5 pct y/y, revenue from fees up 17 pct y/y

* Operating expenses up 13 pct y/y

* CET1 ratio target 15 pct, sees it moving in 12/18 pct range

* Non-performing loan rate 11.2 pct vs 12.2 ct in Q2, 15.8 pct yr ago

* Core Hungarian unit’s profit grows 20 pct y/y, main profit centres abroad are Bulgaria, Russia, Croatia

Source text for Eikon: here

Further company coverage: ($1 = 267.6500 forints) (Reporting by Marton Dunai Editing by Richard Pullin)

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