Erste Group sees €312m write-down, €450m in extra provisions in Hungary

History

Austria's Erste Group on Monday said it expected to write down €312m of goodwill and make additional risk provisions of HUF 450m related to its activities in Hungary.

The measures will be taken because of "unprecedented government intervention in the Hungarian banking market, an increase in the target non-performing loan coverage ratio and a deterioration in asset quality", Erste Group said. The goodwill impairment does not impact regulatory capital or tangible equity, it added.

Erste Group said its unit in Hungary would be "repositioned with a view to establish a bank that is more resilient to political event risk".

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