OTP's Ukraine unit raises provisions 8-fold in '08

18:44, 03 February 2009
633 0

Based on Ukrainian accounting standards,

Hungary`s OTP Bank OTPB.BU said its Ukrainian subsidiary increased risk provisions eight-fold to 1.4 billion hryvnias in 2008, based on Ukrainian accounting standards, according to Reuters.

The bank added that the unit recorded a full-year net profit of 76.6 million hryvnias.

OTP did not provide comparative profit data but said that Ukrainian accounting standards differ widely from IFRS data and its Feb. 13 quarterly report, which will be based on IFRS figures, will show a different picture.

Investors have grown increasingly concerned over the health of the Ukrainian unit on the hryvnia`s weakness and the country`s recession.

The hryvnia has lost over 60 percent of its value versus the dollar since early September while Ukraine`s economy could contract by as much as 5 percent as the country is facing banking problems, a collapse in the steel price and higher gas prices from Russia.

OTP closed the day 1.74 percent lower at 2,320 forints.


If you see a spelling error on our site, select it and press Ctrl+Enter