Erste Bank Hungary operating profit down 24.4% in Q1
Austriaʼs Erste Group booked a first-quarter loss of €200,000 at its business in Hungary, a big improvement over a net loss of €15.6 million in the base period, an earnings report released today shows, according to Hungarian news agency MTI.
Net interest income declined 18.2% to €45.9 mln mainly due to lower loan volumes and the impact of the consumer loan law.
Net income from fees and commissions dropped 3.4% to €33.1 on lower fees from payments and card business.
Operating expenses increased 15.4% to €49.9 mln due to the booking of the full-year contribution of €7.1 mln to the deposit insurance fund.
Operating profit fell 24.4% to €32.7 mln.
With operating expenses up and income down, the cost-to-income ratio rose to 60.4% from 50%.
Total assets edged up half a percent to €6.465 trillion.
Erste Bank Hungaryʼs headcount rose by 2.6% to 2,886 from the end of last year to the end of March.
Erste Bank Hungary booked the amount it owes on the bank levy for the full year in Q1: €17.5 mln. It also booked €9.6 mln on the transaction duty.
Erste Group CEO Andreas Treichl noted that “banking taxes continued to weigh”, but that in Hungary the government had followed through on its promise to reduce the bank levy, which led to saving of €25 mln.
Agriculture Ministry Committed to Sustainable Viticulture
Hungary Condemns Iranian Attack on Israel
Wizz Air's 1st Flight to Istanbul Takes off From Debrecen
Tribe Hotel Budapest Stadium Recognized at LIV Hospitality D...
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.
