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Budapest Bank after-tax profit falls on lower interest income

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After-tax profit of state-owned Budapest Bank fell 11% to HUF 13.1 billion last year, as interest income declined and the retail loan portfolio contracted, a bank official said on Tuesday, as reported by Hungarian news agency MTI.

New outlays to both retail and corporate clients were up, while provisions for loan losses declined, said Viktor Tóth, who heads the corporate division.

Budapest Bank had total assets of HUF 999.2 bln at the end of December, up 3.5% from twelve months earlier. The stock of client loans rose 11% to HUF 590 bln. The stock of client deposits increased 3% to HUF 684 bln.

The leasing stock was up 39% at HUF 77.3 bln. New leasing contracts climbed 49% to HUF 47.3 bln, making the bankʼs leasing business the market leader in the corporate segment.

Budapest Bankʼs capital adequacy ratio stood at 12.39%.

Budapest Bankʼs fund manager had assets of HUF 540 bln at yearʼs end, up 2.4%.

This year, Budapest Bank wants to issue 100,000 new credit cards, said retail division chief Gyula Fatér.

The state purchased Budapest Bank from General Electric Capital Group in 2015.

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