Hungarian group OTP Bank’s Romanian subsidiary recorded an after-tax profit of EUR 7.1 million in the first nine months of the year, down 12% compared to the same period of 2015.

The operating profit recorded in the first nine months of the year stood at EUR 20.7 million, similar to last year. The operating income decreased by 10%, given that net interest income dropped by up to 14%, partly due to the conversion program of loans in Swiss francs.

The income from fees and commissions dropped by 10% year-on-year. It was negatively affected by a new regulation on interchange fees set by a directive of the European Union, which became effective in December 2015. However, the bank also managed to cut its operating expenses by 14%, thus maintaining its operating profit.

The gross loan portfolio decreased by 4% in the past 12 months as a result of the conversion program of loans in Swiss francs. The gross customer loans stood at some EUR 1.66 billion at the end of September 2016. The non-performing loans represented 17.9% of the total gross loans.

editor@romania-insider.com