UBS has reduced its price target for OTP Bank from HUF 4,250 to HUF 4,100 per share, following the revelation of unprecedented second quarter losses at the Hungarian institution. The bank was hit hard, as expected, by the neccesity to make provisions for losses it will incur as the government imposes bank-funded bailouts of foreign exchange loan customers. However, it also emerged that OTP would have to carry out of a goodwill write-off for its Ukrainian operations. The bank closed all eight of its branches in Crimea in May and 13 of its branches in Donetsk and Luhansk. The bank’s total revenues dropped 4 percent, year on year, to HUF 211bn.
