Erste pays state HUF 6 bln dividend on 2017 earnings
Erste Bank Hungary has transferred dividends on 2017 earnings to its major shareholders, in line with their 15% stakes acquired in 2016. State-owned development finance institution Corvinus Zrt. and the European Bank for Reconstruction and Development (EBRD) each received HUF 6 billion, Erste told state news wire MTI on Monday.
Erste Bank Hungary has paid dividends of a total of HUF 40 bln from its 2017 earnings, the bank said in a statement.
In 2017, Erste Bank had consolidated net profit of HUF 54.8 bln, up 26% from a year earlier. Net interest revenues rose 15.2% to HUF 65.5 bln as expenditures fell, while net revenues from fees and commissions increased 10.2% to HUF 48.7 bln.
The bank had IFRS net assets of HUF 339.3 bln at the end of 2017, 20.6% more than a year earlier. The dividends account for 27.3% of registered capital and 12% of net assets.
Corvinus Zrt. and the EBRD purchased a combined 30% stake in the bank in 2016 for HUF 77.78 bln.
The bank closed an extraordinary year in 2017, the statement quoted Chairman-CEO Radován Jelasity as saying, indicating that one-off items and provision write-backs had a significant impact on profit growth at Erste Bank, just as in the entire bank sector.
Excluding one-off items, the bank sector had return on equity (ROE) of 10-11% last year, and Erste Bank wants to maintain its profitability at this level in the medium term. In 2018, the bank still reckons with the positive effects of one-off items, but it expects its net profit to be around last yearʼs bank sector average, the CEO added.
Erste Bankʼs volume of corporate loans rose by 60% over the past two years and the bank plans double-digit growth in 2018 and in the coming years. The bank also projects double-digit growth in retail lending, the statement added.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.