Bloomberg News

OTP Gains Most in 6 Weeks on Outlook, Greek Swap: Budapest Mover

March 09, 2012

OTP Bank Nyrt. (OTP), Hungary’s largest lender, rose the most in six weeks after forecasting credit growth at its Ukrainian and Russian units and as the completion of Greece’s debt swap boosted demand for riskier assets.

The shares climbed 3.4 percent to 3,824 forint by the close in Budapest, paring the decline this week to 5.2 percent, the worst performance on a closing basis since the five days through Jan. 6. The benchmark BUX stock index advanced 1.2 percent to 18,803.43, trimming this week’s fall to 2.6 percent.

OTP, which reported a fourth-quarter net loss as a result of a foreign-currency loan repayment plan, expects consumer loans to grow more than 10 percent in Ukraine and Russia this year, it said in a presentation distributed to reporters today.

“OTP expressed a positive outlook for this year, unfortunately mostly based on foreign units,” Levente Blaho and Adam Keszeg, analysts at Raiffeisen Bank International AG (RBI) in Budapest, wrote in a research report today.

Emerging-market stocks climbed as Greece said 95.7 percent of bondholders will participate in a debt swap after it triggered an option to force investors into taking part.

OTP fell to the lowest in almost two months on March 7 on speculation restarting of Hungary’s talks with the International Monetary Fund and the European Union will face more delays. The stock added to gains today after Roland Natran, a deputy state secretary at the Economy Ministry, told Gazdasagi Radio Hungary is making progress toward starting bailout talks.

“Adjusted for one-time factors, the quarterly results aren’t bad,” Zoltan Reczey, an analyst at Buda-Cash Brokerhaz Zrt. in Budapest, said in a telephone interview today. “OTP’s pricing will depend to a large extent on what the market expects regarding the IMF deal.”

To contact the editor responsible for this story: Andras Gergely at agergely@bloomberg.net


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