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UPDATE 1-Hungary's OTP Bank seeks profitability boost, acquisitions possible
May 12, 2017 / 8:28 AM / 6 months ago

UPDATE 1-Hungary's OTP Bank seeks profitability boost, acquisitions possible

(Adds detail, share price)

May 12 (Reuters) - Hungary’s OTP Bank Deputy CEO Laszlo Bencsik tells press conference:

* Further steps needed to improve profitability in Slovakia, Serbia and Montenegro.

* Steps could include acquisitions as well as organic growth.

* Targets loan-to-deposit ratio nearer to 100 percent in the coming years.

* Expects dynamic loan growth in Russia this year, primarily in consumer loans.

* Timing of acquisition of Splitska Banka in Croatia was “favourable”, with Croatia expected to enter growth phase.

* Expects non-performing loan rate to continue to fall. Rate now below 10 pct in core Hungarian market.

* Hungarian revenue shrinks, pressured by tight margins and increased competition.

* Recovered risk provisions in Hungary after non-performing loans were sold for more than the provisions set aside.

* Bulgarian business showed similar pattern, with revenue decline offset by lower risk provisions.

* OTP shares up 1.9 pct at 8,400 forints in morning trade, well above key support level of 8,000 forints, which analysts said signifies upside potential. Further company coverage: (Reporting by Marton Dunai; Editing by David Goodman)

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