Business news from Ukraine

OTP BANK PLANS TO INCREASE LOAN PORTFOLIO BY 33% IN UKRAINE

Kyiv-based OTP Bank is planning to increase its loan portfolio by 33.4%, to UAH 37.6 billion, in 2017-2020, OTP Bank Board Chairman Tamas Hak-Kovacs has said. “Our goal is to increase our loan portfolio by 33.4% by the end of 2020 to UAH 37.6 billion from UAH 25.1 billion as of the end of 2016. If we compare Ukrainian and Hungarian banks in terms of the number of branches and employees, Hungarian loan portfolios are five to six times larger than Ukrainian. And if we take German and U.S. [banks] for comparison, they have even much more credits. Thus the key task of OTP Bank is to build up credit financing,” he said in an interview with Interfax-Ukraine.
The banker added that OTP Bank was planning to increase its share in the segment of crediting for medium-sized and large businesses as well as to strengthen its leading positions in consumer crediting.
“Last year the bank introduced on the market its product Agrofactory for financing of medium-sized agricultural producers. At the end of the second quarter we entered the bid guarantee market – the bank issues bid guarantees for clients within just two hours… Our goal in retail business is to take a leading position in consumer crediting. In this context we resumed auto loan financing last year. Today we are working on the development of a new platform for entrepreneurs and microbusinesses,” Hak-Kovacs said.

OTP BANK UKRAINE EXPECTS TO GET UAH 2 BLN IN NET PROFIT

Kyiv-based OTP Bank expects to post UAH 2 billion in net profit by the end of 2018, Chairman of OTP Bank’s board Tamas Hak-Kovacs has said. “In the first four months of this year, the bank’s net profit amounted to UAH 723 million. Net profit in 2018 may amount to UAH 2 billion. It will entirely be capitalized. This is also part of our strategy – to capitalize profits, therefore this money is additional liquidity, and it is in the Ukrainian hryvnia,” he told Interfax-Ukraine in an interview.
Due to profitable operating activities and the consistent implementation of a balanced financial and credit policy, OTP Bank improved the result of 2017 and posted net profit under IFRS was UAH 1.02 billion.
In Ukraine, OTP Bank acts as the flagship of the OTP banking group, registered by the National Bank of Ukraine. The group also includes LLC OTP Capital assets management company and LLC OTP Leasing. OTP Bank ranked 11th in terms of net assets worth UAH 29.822 billion among 84 banks operating Ukraine as of January 1, 2018, according to the National Bank of Ukraine.

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OTP BANK SEES 2.3-FOLD RISE IN PROFIT IN Q1

OTP Bank (Kyiv) in January-March 2018 saw UAH 670.493 million of net profit, which is a 2.3-fold rise year-over-year.
According to a financial report posted on the bank’s website, its net interest income grew by 21%, to UAH 584.507 million, and non-interest income increased 3.24-fold, to UAH 395.402 million, including a rise of 26.8% in net commission income, to UAH 255.924 million.
Operating expenses grew by 8%, to UAH 351.757 million.
The bank’s assets rose by 5.1%, to UAH 30.9 million, including a 6.1% rise in loans issued to clients, to UAH 18.08 billion.
Funds of clients grew by 2.9%, to UAH 26.4 million.
OTP Bank was founded in 1998. Its sole shareholder is Hungary’s OTP Bank Plc. OTP Bank is part of OPT banking group, which also includes OTP Factoring Ukraine LLC, AMC OTP Capital, OTP Leasing LLC, and OTP Credit LLC.
OTP Bank ranked 12th among 84 banks operating in the country on January 1, 2018 by total assets (UAH 29.822 billion), according to the National Bank of Ukraine.

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