It said its loan risk provisions grew 80% on the year in 2020 over pandemic-driven uncertainties. The bank made most of its provisions in the first half of the year.
“In 2020 we set up additional provisions of RON70 million to cover potential risks brought by the pandemic. We pursued our organic growth strategy which targets reaching a market share of 5% by 2024. This generated growth in local operations and 13% growth in our loan portfolio,” said Gyula Fatér, general manager of OTP Bank Romania.
The bank also opened new branches, digitized baking services and hired 200 people in 2020, raising staff numbers by 13%.
The bank’s operating profit stood at RON163 million in 2020, up 10% compared with 2019. Operating expenses grew 20% on the year due to the implementation of its growth strategy launched in 2019.
Net interest income grew 10%, to RON451 million, driven by lending growth as interest margins dropped by 15 basis points compared with 2019.
OTP Bank Romania said its performing loans grew 13%. The bank is an active player on government-support schemes and loans to SMEs grew 15%, while loans to corporate grew 9%.
Customer deposits, adjusted for the exchange rate, grew 20% in 2020, with 15% growth on the retail segment and 37% on the corporate segment.
The bank’s assets stood at RON14.8 billion at the end of 2020, up 12% on the year.