RBI, CIB report losses in Hungary for 2013


This is what passes for good news in the Hungarian banking industry these days, it seems: The past two days have seen RBI and CIB banks release consolidated reports; each show losses taken but presented lower provisioning costs positively.

Austria-based Raiffeisen Bank International (RBI) took a €116 million loss at Hungarian branches in 2013, according to its consolidated report released yesterday. From the positive-spin perspective, RBI saw a nice year-on-year reduction of €89 million in provisioning costs on its Hungary-based operations to “only” €152 million.

Other key stats reported include the bank’s net interest income decreasing 17.9% y.o.y. to €196 million; net interest margins falling 0.25% to 3.18%; net income from commissions and fees rising 53.4% to €118 million; and operating profit increasing 83.3% to €83 million. RBI booked total assets of €6.230 billion at the end of 2013, down 12.9% y.o.y.

In a press conference today, RBI CEO Heinz Wiedner assured that the sale of RBI business in Hungary, considered by the board in late 2013, had been “taken off the agenda”and the unit is currently “concentrating on future strategy, mainly primary client relationships and offering competitive, high-level service.”

RBI currently runs 122 business outlets in Hungary and has 606,000 clients.

Meanwhile, the release of a consolidated report from CIB Bank, Hungary-based subsidiary of Italy-based Intesa Sanpaolo, decreased 10% y.o.y. to HUF 136.7 billion last year as impairment and provisioning fell, while income from interest and fees rose.

The numbers show that net interest income rose 6.0% y.o.y. to HUF 37.5 billion and net income from commissions and fees climbed 18.7% to HUF 31.6 billion; the bank cited impairment and provision costs decreasing 8.4% to HUF 142.4 billion as a reason for the, let’ssay, less negative results.

For 2013, CIB Bank reported total assets of HUF 1.8492 trillion, down 12.7% y.o.y.

"The bank group sees 2013 as a year of preparation for the trend reversal, while continuing its operation in line with its new strategy. The essence of this strategy is to maintain its key market positions through a strong, sustainable organisation in which priority is given to the leveraging of synergies and to adopting a solutions-oriented approach to customer service," CIB's press office said, commenting the results.


Budget Must Adapt to Economic Environment - Varga MNB

Budget Must Adapt to Economic Environment - Varga

Hungary Makes Proposals to Ease Administrative Burden for EU... EU

Hungary Makes Proposals to Ease Administrative Burden for EU...

AutoWallis Registers Over HUF 360 bln in Revenue in 2023 Automotive

AutoWallis Registers Over HUF 360 bln in Revenue in 2023

Guest Nights at Campsites, Hostels Climb Tourism

Guest Nights at Campsites, Hostels Climb


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.