MNB operating costs to double in 2014
The National Bank of Hungary (MNB) targets operating costs of HUF 29.4 billion this year, the first full year following its merger with financial market regulator PSzÁF last October, a report by the central bank’s supervisory board shows.
The report shows operating costs came to HUF 14.4 billion in 2013, a 23% year-on-year increase, also on the October merger. The report noted an expenditure framework of net HUF 6 billion for communicating its Funding for Growth scheme for SME loans.
The supervisory board asked MNB management to report on the “extraordinarily high” value of the tender as well as its aim. It also recommended the bank rethink the decision on the tender, the scale of which well exceeded the central bank’s total communications expenditures, varying between HUF 200 million and HUF 346 million annually, in the preceding years.
At the end of March, MNB reported a profit of HUF 26.3 billion for 2013, a serious improvement on the HUF 39.8 billion loss in 2012 – and quite an outdoing, an official statement noted at that time, on the HUF 203 billion loss expected for the central bank in 2013.
The result was mainly attributed to the “improvement in interest income resulting from the base rate easing cycle” and higher realized profit from exchange rate changes. MNB also claimed that, adjusted for the subsumption of PSzÁF, operating costs were actually only HUF 99 million as opposed to the HUF 14.4 billion reported.
Financial results deteriorated from the previous year.
-- material from national news service MTI was used in this article
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