JSC OTP Bank Reports 1Q 2011 Net Profit of UAH 269 million
JSC OTP Bank reports solid 1Q 2011 net profit of UAH 269.5 million according to Ukrainian financial standards, having more than tripled the previous year result (UAH 87.3 million).
“Having resumed profitable operation in the first quarter of 2010 already, the Bank kept on constantly improving its financial result. We managed to achieve such high performance rates owing to resumption of active lending, competent management of bad loans and effective optimization of operating expenses,” highlighted Mr. Dmitry Zinkov, Chairman of the Board of OTP Bank.
The Bank’s net interest income increased by UAH 8.4 million (1.6%) compared with the result in the same period of 2010 and totalled UAH 533 million as of March 31, 2011. Net commissions increased by 24.4% to UAH 65.1 million.
The Bank's total assets as of March 31, 2011, amounted to UAH 24.6 billion. Corporate loan book showed positive trends: compared to UAH 11.8 billion in the fourth quarter of 2010 it reached UAH 11.9 billion by the end of the first quarter.
At the same time, due to repayment of loans and still modest volumes of retail lending in the reported period, retail loan portfolio decreased 11.2% q-o-q to UAH 8.7 billion. The total loan portfolio slightly decreased from UAH 21.4 billion to UAH 20.6 billion, still pointing out the extraordinary efforts taken by the Bank to improve the quality of the loans.
"Despite a slight reduction in the loan portfolio at the beginning of the year, we are confident that the second quarter will show the signs of growth. At present, the Bank is actively reviving lending programs in the corporate and retail sector as well, and, thanks to the sustainable financial position and positive financial results, continuously improving credit conditions for our customers," commented Mr. Zinkov.
At the end of 1Q 2011, the Bank's liabilities amounted to UAH 24.6 billion, wherein corporate account balances by the end of the reporting period amounted to UAH 3.4 billion (with reference to UAH 3.8 billion result of 2010). Balances of accounts of individuals reached UAH 4 billion showing a positive trend up from the results of 2010 (UAH 3.8 billion).
As of March 31, 2011, JSC OTP Bank regulatory capital was UAH 4.9 billion (while the capital normative requirement is UAH 120 million). The regulatory capital adequacy ratio (CAR) established at the level of 22.2%, which is more than twice as much as required by the normative CAR minimum of 10%. Current liquidity ratio equalled 64.58%, while the minimum limit is 40%.
Public Joint Stock Company OTP Bank is the member of OTP Group, which is the largest independent Central-Eastern-European banking group. JSC OTP Bank is one of the largest domestic banks in Ukraine. The Bank provides full range of financial services to retail and corporate clients as well as small and medium businesses. The Bank entered the Ukrainian market in 1998, and since then it enjoys a staunch reputation of socially responsible, reliable and stable institution providing its consumers with services of European quality standards.
According to the AUB, JSC OTP Bank is the 8th largest domestic bank by total assets and the capital as of March 1, 2011. The number of its clients exceeds 430 thousand. Its branch network throughout Ukraine contains 189 branches and 2 representative offices.
