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.
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