He indicated that 37 employees were laid off since the beginning of this year, although the lender had initially planned to fire 50 employees. OTP Bank currently has 1,059 employees.

“The salary increase will be made proportionally with the inflation rate registered this year. We expect salary costs to be at levels similar to last year, as the reductions from the operated layoffs will compensate for increases in September,” Diosi said.

OTP Bank’s personnel-related expenses, including salaries, social contributions, and other benefits amounted to RON 91.8 million (€25 mln) in 2008.

The lender’s Sales Manager, Gabriel Creţu, indicated that salaries will rise depending on the performance of each employee.

“Some employees will get a 10 percent raise, others will get nothing, depending on their performance,” Creţu said.

The bank’s net profit was €2 mln in the first six months, after posting €2.46 mln worth of losses in the first quarter. According to company officials, the profit obtained in the second quarter in Romania was the best in the group, following that posted in Bulgaria.

“We hope to post an equally good profit in the last part of this year, but this also depends on the economic environment,” Diosi added.

The sales manager recommends euro loans at present, as the Euribor rate is low and the exchange rate is stable. He also expects poor-performing loans to stabilize, as the retail client portfolio has improved. OTP Bank set aside €6.8 mln in provisions in H1, after overdue loans tripled within one year.