CIB profit reaches HUF 12 bln in 2016 on provisions release
Italian-owned CIB Bank had net profit of HUF 12 billion last year, improving over a HUF 40.2 bln loss in the base period on a release of provisions, a consolidated IFRS earnings report released late yesterday shows, Hungarian news agency MTI reported.
Net interest income fell 12% to HUF 26.1 bln. Net revenue from commissions and fees edged up a little more than half a percent to HUF 28 bln.
CIB Bank released HUF 4.9 bln of provisions for impaired assets last year after building up provisions of HUF 35.9 bln in the base period.
The reduced bank levy also supported the bottom line: CIB Bank paid just HUF 4.9 bln on the levy in 2016, down from HUF 11.9 bln in 2015.
The lender told Hungarian wire service MTI that its profitable operation could be attributed to new retail and SME outlays, growth on the investment fund market, a reduction in non-performing loans and an improvement in cost-efficiency.
CIB Bank had total assets of HUF 1.630 trillion at the end of December, down almost 3% from 12 months earlier.
CIB Bank told MTI that the reduction was the result of a portfolio cleanup that outweighed the impact of new lending.
Stock of client loans fell 20% to HUF 876 bln. Stock of non-performing loans fell 40% to HUF 90 bln. The NPL ratio fell to 9.4%. Stock of client deposits dropped 2.8% to HUF 1.174 tln.
The bankʼs capital adequacy ratio stood at 25.18% at the end of last year.
CIB Bank said it aims to continue its growth-oriented strategy this year, focusing on the retail and SME segments. A further portfolio cleanup is also planned, it added.
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