OTP Bank Romania, the local subsidiary of the Hungarian group OTP, reduced its assets by 1% in the first quarter of this year, to RON 20.6 billion (EUR 4.18 bln), as its gross loan portfolio went down by 2% quarter-on-quarter due to lower demand in the retail segment.

The deposits from customers also declined by 1% in the first three months of 2023.

However, compared to Q1 2022, the bank's total assets went up 7%, the gross loan portfolio was 4% higher, and the deposits increased by 12%, according to OTP Bank Romania's financial report.

The bank's operating profit in the first quarter amounted to RON 47 mln (EUR 9.5 mln), down by a third compared with Q4 2022 but up by 37% versus Q1 2022.

The bank ended the quarter with an adjusted profit after tax of RON 15 mln, compared with losses of RON 24 mln in Q1 2022.

"The beginning of this year represents a transition between the context of 2022 and the gradual improvement expected for the main economic indicators during this year. To the same extent, the developments of the main business lines differ according to market trends and changes in customer preferences, so we are overall satisfied with the performance of the first quarter of the year. We achieved good financial results, with increases in revenues and operational profitability compared to the previous year, strengthening the bank's position at a time when some business segments present certain challenges," said Gyula Fatér, CEO of OTP Bank Romania.

andrei@romania-insider.com

(Photo source: OTP Bank Romania)