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Banking sector profit climbs 19% in Q1-Q3

Telco

The combined after-tax profits of Hungaryʼs banking sector rose 19% year-on-year to HUF 495.8 billion in the first three quarters of 2017, lifted by higher commissions and the lower bank levy, data released by the National Bank of Hungary (MNB) on Tuesday show.   

Net interest revenue fell 5% to HUF 588.2 bln, but non-interest revenue jumped 78% to HUF 455.7 bln, according to a summary of the data by state news agency MTI.

Revenue from commissions and fees increased 12% to HUF 386.8 bln, while "other non-interest revenue," which shows the impact of the bank levy, came to a negative HUF 124.7 bln, a big improvement over a negative HUF 286.2 bln in the base period.

The sectorʼs total assets came to HUF 35,801 bln at the end of September, up 7% from twelve months earlier.

The net lending stock rose 11% to HUF 18,083 bln. Corporate loans were up 11% at HUF 6,012 bln, while retail loans increased 5% to HUF 5,336 bln.

The MNB noted that the ratio of non-performing loans (NPLs) in banksʼ portfolios declined from 12.8% to 7.1% during the period, according to Hungarian Accounting Standards. The NPL ratio for corporate loans dropped from 14.0% to 7.9%, while it fell from 19.6% to 12.4% in the case of retail loans. 

The stock of client deposits at banks, including investments in money market funds, rose 11% to HUF 19,449 bln.

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