OTP Bank Romania, which is in the process of being taken over by the market leader by assets Banca Transilvania, announced its net profit surged seven-fold to RON 262mn (EUR 52mn) in 2023, according to Economica, based on the annual report published by OTP Bank in Budapest.

The adjusted profit after tax of OTP Bank Romania surged to HUF 20bn in 2023 from HUF 3bn in 2022, according to the report.

The unusual performance was the result of massive provisioning for impairment for loan losses reported in 2022: HUF 11bn in 2022 compared to HUF 2.8bn release of provisions in 2023.

The operating profit recorded last year reached RON 270mn (EUR 54mn), up 25% compared to the previous year, as a result of the 13% increase in total income, while net interest income increased by 4% y/y, and net commissions increased by 8% y/y, influenced by higher commissions from card transactions.

According to local reporting standards, the bank's assets reached RON 19.8bn (EUR 4bn) at the end of 2023, a stable level compared to the previous year, and the bank's capital adequacy ratio reached the level of 23.9% (+138 basis points y/y), influenced by the increase in own funds.

(Photo: the company)

iulian@romania-insider.com