OTP Extends Longest Rally in Month on Profit: Budapest Mover
OTP Bank Nyrt. (OTP), Hungary’s largest lender, extended the longest streak of gains in a month after third-quarter profit beat analysts’ expectations and the lender said bad loans will expand at a slower pace in 2013.
The shares rose 1.9 percent to 4,246 forint, the highest since Oct. 17, bringing its advance in the past four days to 4.6 percent. The benchmark BUX stock index, in which OTP has a 30 percent weighting, fell 1 percent today.
Net income totaled 42.5 billion forint ($190 million) in the third quarter, OTP said in a statement to the Budapest Stock Exchange. That compares with a median estimate of a 40.7 billion-forint profit in a Bloomberg poll of eight analysts. The bank will have “low single-digit” growth in lending next year as bad loan provisions decline and the economies in central and eastern Europe “marginally” improve, Chief Financial Officer Laszlo Bencsik said in an interview.
“The earnings report is definitely positive and shows a better picture than expected on all key numbers,” Zoltan Reczey, a Budapest-based analyst at Buda-Cash Brokerhaz Zrt., wrote in a research report. “The most important development is the substantial slowdown in the deterioration of portfolio quality.”
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