Erste Bank Hungary H1 loss narrows on base effect
Erste Bank Hungaryʼs consolidated first-half loss narrowed to HUF 10.8 bln from HUF 43.9 bln in the same period a year earlier on the base effect of compensation it was required to pay retail clients under borrowersʼ relief legislation, an earnings report released late yesterday reveals, according to Hungarian news agency MTI.
Erste Bank Hungary booked a HUF 3.4 bln gain on its "other net operating income" line in H1, compared to a HUF 39.2 bln loss in the base period that it attributed to provisions it made for the borrowersʼ relief refunds.
All Hungarian lenders were required to compensate retail clients for making unilateral changes to contracts as well as using exchange rate margins to calculate repayments on FX loans under borrowersʼ relief legislation.
The report shows Ersteʼs net interest revenue fell 19% to HUF 34.9 bln, as interest rates declined during the period, but net revenue from commissions and fees edged up 2% to HUF 21.5 bln.
Erste had total assets of HUF 1.851 trillion at the end of June, down 2% from the end of 2014. Net assets dropped 6% to HUF 167.2 bln.
Stock of client loans declined 5% to HUF 1.088 trillion. Stock of client deposits inched down 1% to HUF 1.226 trillion.
Risk provisions were down 77% at HUF 5.3 bln.
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