Hungarian banking sector's after-tax profit declines 13%
The combined after-tax profit of Hungary's banking sector fell 13% in H1, while combined total assets rose 16.7% in the twelve months to June, according to figures published on the website of Hungarian market regulator PSzÁF.
Combined after-tax profit of the sector fell to Ft 176 billion (€739 million) in H1 of this year and combined total assets rose to Ft 25,655 billion at the end of June 2008.
The after-tax profit of large Hungarian banks dropped 10% to Ft 140.7 billion in the first half of 2008, while that of mid-sized banks fell 40% to Ft 24.7 billion during the period, PSzÁF reported. Small banks reduced their losses to Ft 715 million combined from Ft 1.021 billion in H1 2007.
Hungary's two home-savings banks and three mortgage banks, in contrast, almost doubled their combined after-tax profit in the period, to Ft 11.3 billion from Ft 5.8 billion in H1 of 2007.
Hungary's large banks increased their total assets by more than 25%, well-above the market average, while those of the country's mid-sized banks and small banks declined by 20% and 4%, respectively, during the period.
Large banks' market share rose to 76.5% in terms of total assets from 71.3% on June 30, 2007. PSzÁF noted that this year it had elevated Budapest Bank to the large-bank category, which also includes previous members OTP, CIB, MKB, Raiffeisen, K&H, Erste and UniCredit.
The combined assets of Hungary's two home-savings banks and three mortgage banks rose 23% during the twelve-month period ending on June 30, 2008, PSzÁF reported.
PSzÁF added that the group of mid-size banks no longer includes IEB, which merged with CIB last year, and AEB, which was converted into an investment business. Former small banks KDB and AXA are now included among mid-size banks, while two former mid-size banks were transferred to the small-bank category. (MTI – Econews)
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