OTP Bank reported its consolidated after-tax profit fell 25 percent y-o-y to HUF 78.7bn in the second quarter. The loss was a result of the risk costs linked to the coronavirus pandemic. Provisions totaled HUF 39.1bn in Q2, down from HUF 91.7bn that the Hungarian commercial bank reported in Q1. OTP said that HUF 2bn in provisions it released were related to the government-mandated moratorium on loan repayments in Hungary. Lending activity for the period was “shaped by lockdowns and limitations” due to the coronavirus. However, the bank added, “the more cautious attitude of clients also took its toll.” OTP reported double-digit decreases in new lending activity between the first quarter and the second quarter in Hungary, Russia and Croatia.
