Budapest Bank profit jumps in H1 as provisioning for lending losses drops

Music

Budapest Bank, the Hungarian unit of GE Money Bank, had consolidated after-tax profit of HUF 11.16 billion in the first half, up 72% from the same period a year earlier largely because of a HUF 10 billion drop in risk provisioning, the bank said on Monday.

Budapest Bank had total assets of HUF 886.6 billion on June 30, down 5% from twelve months earlier. Stock of client and interbank loans fell 6% to HUF 675 billion while stock of client and interbank deposits dropped 6% to HUF 715 billion.

The bank had net revenue of HUF 44.2 billion in H1, down 6% from the same period a year earlier.

Retail lending stock, including car loans, fell 5.7% to HUF 468 billion. Within the stock, mortgage loans edged down 2% to HUF 217 billion. However, new mortgage loans signed during the period were up five-fold at HUF 4 billion.

Budapest Bank continues to offer a number of solutions to clients struggling with repayments, such as a moratorium on payment of principal, extension of the run of the loan and fixed repayments in the case of foreign currency-denominated loans.

Stock of SME loans, excluding credit extended by the bank's leasing division, rose 4% to HUF 219 billion.

New leasing contracts signed in H1 came to HUF 7.1billion, almost quadruple the amount in the base period.

ADVERTISEMENT

More Romanians at poverty risk since the COVID pandemic Analysis

More Romanians at poverty risk since the COVID pandemic

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.