OTPBank Romania, the local branch of the biggest Hungarian financialgroup, posted 7.6 million euros in losses in the third quarter, thesame as in the previous quarter, considering it continued to setaside significant provisions.
Whereas problems in the summer were caused by a number ofseveral high-exposure real estate developers going insolvent, thepressure is now coming from the faster deterioration of mortgageloans.
The bank set aside 15.9 million euros in provisions in the thirdquarter, the same as in the previous quarter.
Overall, the share of loans overdue by more than 90 days went up to9.6% of the total portfolio in September, from 8.4% in June and2.3% in September 2009.
Although the need for high provisions has been causing losses, OTPis trying to boost income from operations.
Operating income stood at almost 24 million euros in the firstthree quarters, compared with 17 million euros in the same timelast year. The growth was made possible by the increase in interestand fee income.
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