OTP Romania’s assets registered record growth rates, 85 percent in the first half of 2007, compared to H1 2006, to reach €810 million, caused by loan portfolio expansion. The registered losses increased by 17 percent, to €7.5 million. The total value of loans increased by 121.6 percent from H1 2006, to HUF 135.72 billion (some €540 million). This does not include HUF 26 billion (€102 million) in mortgages, of which HUF 14.5 billion (€57 million) were posted in Q2, and which were transferred to the Hungarian bank’s balance sheet to avoid high costs resulting from strict National Bank of Romania (BNR) regulations on compulsory minimum reserves, according to the OTP financial report.
The asset growth rate was 8.5 percent in forints, compared to the end of Q1 2007, but the value was even higher in RON, since the Hungarian currency depreciated by 5 percent against the leu in Q2. If the externalized loan portfolio were to be included, the growth rate would reach 164 percent of the level posted on 30 June 2006. The lender estimates a 1.5 percent general share in terms of assets, of 1.89 percent on the loan market and 0.56 percent in deposits by the end of May. OTP enjoys the best position on the mortgage market, with a 4.4 percent share, as it offers loans in foreign currencies, such as Hungarian forints, Japanese yen, and Swiss francs.
Revenue ] Net revenue from interest rates increased by 67.6 percent to approximately HUF 2 billion (€7 million), while the net interest margin dropped to almost two thirds of the value registered in H1 2006.
