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Budapest Bank reported H1 profit of HUF 15.7 bln

Telco

State-owned Budapest Bank had first-half after-tax profit of HUF 15.7 bln, the lender said on Friday, according to state news agency MTI. Budapest Bank expects full-year earnings to reach HUF 10 bln, as its bottom line is hit by the lower interest rate environment as well as the cost of converting its FX vehicle loans into forints. 

The projection is still over the target because of growth in Budapest Bankʼs key business areas, improved risk provisioning and one-off factors. First-half earnings were strong in spite of a contracting portfolio due to settlement of borrowers relief, lower interest rates and new pricing regulations, the lender said. Return on assets was 3.59% and return on equity 23.96%.

Budapest Bank had total assets of HUF 867.6 bln at the end of H1, down 2% from 12 months earlier. Stock of client deposits fell 8% to HUF 519.8 bln, with six percentage points of the fall attributed to the borrowers relief settlements.

Client deposits were down 10% at HUF 536.7 bln. Gross stock of retail loans dropped 12% to HUF 337 bln. Corporate lending stock was little changed at HUF 432 bln. Corporate deposits were up 19% at HUF 283 bln. Assets of Budapest Bankʼs fund manager rose 16% to HUF 520.2 bln.

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