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OTP Bank Q2 attributable profit up 91% YOY as loan loss provisions drop

OTP Bank Nyrt. reported second-quarter unaudited consolidated net comprehensive income attributable to equity holders of 115.37 billion Hungarian forints, up from 60.54 billion forints in the same period in 2017.

Consolidated after-tax profit rose on a yearly basis to 89.52 billion forints from 80.70 billion forints. Excluding the effects of total negative adjustments of 1.36 billion forints in the period, compared to positive adjustments of 2.44 billion forints a year ago, consolidated adjusted after-tax profit for the quarter was 90.88 billion forints, up from 78.26 billion forints a year earlier.

Unadjusted EPS for the quarter was 342 forints, compared to the year-ago 308 forints. Adjusted EPS for the period was 347 forints, compared to the year-ago 299 forints.

Net interest income was 145.88 billion forints, up from the year-ago 136.93 billion forints. Net fees and commissions also increased, to 56.73 billion forints from 53.76 billion forints.

Total risk costs amounted to 2.07 billion forints, down from 9.83 billion forints a year earlier. Provision for loan losses dropped to 93 million forints from 6.15 billion forints.

Adjusted return on equity was 22.3% in the quarter, compared to 21.3% in the second quarter of 2017.

For the first half, consolidated net profit attributable to owners of the company was 154.43 billion forints, compared to 133.42 billion forints a year ago.

Consolidated after-tax profit totaled 154.57 billion forints, up from 133.56 billion forints in the first half of 2017. Provision for loan losses fell year over year to 663 million forints from 16.79 billion forints.

The group's Basel III common equity Tier 1 capital ratio stood at 14.6% at the end of June, compared to 15.0% at March-end.

As of Aug. 9, US$1 was equivalent to 276.94 Hungarian forints.