BUDAPEST, Feb 3 (Reuters) - Hungary's OTP Bank said its Ukrainian subsidiary increased risk provisions eight-fold to 1.4 billion hryvnias in 2008, based on Ukrainian accounting standards.
The bank added that the unit recorded a full-year net profit of 76.6 million hryvnias.
OTP did not provide comparative profit data but said that Ukrainian accounting standards differ widely from IFRS data and its Feb. 13 quarterly report, which will be based on IFRS figures, will show a different picture.
Investors have grown increasingly concerned over the health of the Ukrainian unit on the hryvnia's weakness and the country's recession.
The hryvnia has lost over 60 percent of its value versus the dollar since early September while Ukraine's economy could contract by as much as 5 percent as the country is facing banking problems, a collapse in the steel price and higher gas prices from Russia.
OTP closed the day 1.74 percent lower at 2,320 forints.
(Reporting by Balazs Koranyi; Editing by Erica Billingham) Keywords: OTP UKRAINE/ (balazs.koranyi@reuters.com; +36 1 327 4753; Reuters Messaging: balazs.koranyi.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The bank added that the unit recorded a full-year net profit of 76.6 million hryvnias.
OTP did not provide comparative profit data but said that Ukrainian accounting standards differ widely from IFRS data and its Feb. 13 quarterly report, which will be based on IFRS figures, will show a different picture.
Investors have grown increasingly concerned over the health of the Ukrainian unit on the hryvnia's weakness and the country's recession.
The hryvnia has lost over 60 percent of its value versus the dollar since early September while Ukraine's economy could contract by as much as 5 percent as the country is facing banking problems, a collapse in the steel price and higher gas prices from Russia.
OTP closed the day 1.74 percent lower at 2,320 forints.
(Reporting by Balazs Koranyi; Editing by Erica Billingham) Keywords: OTP UKRAINE/ (balazs.koranyi@reuters.com; +36 1 327 4753; Reuters Messaging: balazs.koranyi.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
