BUDAPEST, May 16 (Reuters) - Hungary’s OTP Bank may have to write down some goodwill at its Ukrainian unit later this year, with more information available at the end of the second quarter, Deputy Chief Executive Laszlo Bencsik told a news conference on Friday.
Bencsik did not give an indication about the probable size of the goodwill writedown, but said the situation in Ukraine, where the bank faces steep losses amid the ongoing crisis, did not point toward a positive turnaround.
“We will know a lot more by the end of the second quarter, there will be a new government after the elections (on May 25), we will know what kind of agreement the new political leadership might strike with international organisations,” he said.
“We will decide on that basis. A goodwill writedown cannot be excluded.”
The Ukrainian unit wrote down 37.2 billion forints ($167.23 million) of its registered 64 billion forints worth of goodwill in Ukraine in the third quarter of last year.
OTP posted a modest profit in the first quarter. Its shares were up by a third of a percent at 0800 GMT, versus a flat wider market. ($1 = 222.4438 Hungarian Forints) (Reporting by Gergely Szakacs and Marton Dunai)