OTP Bank Rises 4th Day on Loan Growth, Dividend: Budapest MoverEdith Balazs
OTP Bank Nyrt., Hungary’s largest lender, gained for a fourth day after saying lending may expand this year and dividend payments may rise.
The shares rose as much as 2.1 percent before paring their gain to 0.1 percent at 4,841 forint by close in Budapest. The benchmark BUX stock index added 0.2 percent.
OTP may see a “moderate” increase in foreign currency-adjusted loans and provisioning for bad loans may decrease, Chief Financial Officer Laszlo Bencsik said today. The bank may propose a dividend of 120 to 121 forint per share after the 2012 business year, from 101.7 forint per share last year, Bencsik said according to state news service MTI.
OTP’s results show “promising” trends as the rise in bad loans seems to have halted and foreign subsidiaries “perform excellently,” Zsolt Kondrat, chief analyst at Budapest-based MKB Bank Zrt. said in an e-mail today.
OTP posted net income of 26.1 billion forint ($115 million) in the fourth quarter after a loss of 25.8 billion forint a year earlier, the bank said today. Analysts expected a profit of 30.4 billion forint in the last quarter, according to a Bloomberg poll of nine analysts.