Early FX Loan Repayments “Most Damaging Measure” Of Past 4 Year, Says OTP’s Csanyi

(MTI) – The government’s early repayment scheme for troubled mortgage-holders who borrowed in foreign currency was its most damaging measure of the past four years, OTP Bank chief, Sandor Csanyi, told the bank’s AGM on Friday.

He said the measure had cost the bank “a lot” and had at the same time most helped out well-off borrowers who did not really need it.

The most responsible measure, however, was the exchange-rate cap, he said, adding that 30 percent of OTP clients had taken advantage of it.

Csanyi told the meeting that OTP does not want to further increase its excellent, 16 percent, Core Tier 1 capital adequacy ratio, but the crisis in and around Ukraine, the possible consequences of any further government measures to help forex debtors and other factors warrant a cautious reserve policy.

OTP’s subsidiary in Ukraine has so far performed well, and OTP’s exposure to Ukraine is much smaller than that of other banks, he said.

After settling the acquisition of Banco Popolare Croatia on Thursday, OTP sees Romania as a place where they could expand by acquisitions, he said.

Shareholders of OTP Bank approved a proposal to pay a dividend of 145 forints per share dividend.

Taking into account treasury shares, shareholders will get 147 forints per share from the 40.6 billion forint dividend fund.

OTP Bank had net income of 69.4 billion forints (EUR 225m) last year, according to Hungarian Accounting Standards.

OTP shares mid-day traded 0.73 percent lower on Friday’s opening, at 4,200 forints.

Photo: MTI

Source: http://mtva.hu/hu/hungary-matters