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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