Combined after-tax profit of Hungarian banks limited by shares plunged to HUF 61.5 billion in the first quarter from HUF 123.5 billion in the same period a year earlier as the bank levy made deep inroads into earnings, according to fresh data published by financial market regulator PSzÁF.
The data, which exclude specialized banks, such as the development bank MFB, Eximbank and clearing house KELER, as well as savings cooperatives and branches of foreign banks, show banks limited by shares booked a combined loss of HUF 61.4 billion under “other non-interest income”, the line in the PSzÁF report that contains the bank levy as well as provisions on forex and other futures transactions.
Banks must pay the levy in four installments this year. In 2010, the year the tax was introduced, banks paid the tax in two installments, in September and in December, therefore the levy was not booked in Q1 2010.
Banks, insurers and other financial companies paid HUF 50.7 billion on the levy in January-April, according to the latest general government data from the National Economy Ministry.
The PSzÁF report shows banks limited by shares had net interest revenue of HUF 218.6 billion in Q1, up 4.6% from the same period a year earlier. Non-interest revenue plunged to just HUF 16.9 billion from HUF 130.1 billion.
“Change in specific provision and value adjustments” fell sharply to HUF 9.7 billion from HUF 59.5 billion. The fall partly reflects accounting changes.
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