Hungarian bank profits fall in Q1

Telco

Hungarian banksʼ combined after-tax profit at the end of 2018 Q1 decreased to HUF 159.9 billion from HUF 180.5 billion year on year, data released by the National Bank of Hungary (MNB) on Friday shows. Contactless bank cards are on the rise.

Bank net interest income fell 1.4% to HUF 194.3 bln by the end of March as interest revenue rose 1% from the same period a year earlier but interest expenditures increased at an even faster rate, rising by 7.1%, national news agency MTI reports.

Non-interest income was up 18.3% at HUF 225.01 bln as commissions revenue fell 3.7%, dividends revenue was down 8.1% but income from financial and investment services rose 28% and other non-interest income showed a HUF 3.6 bln net gain compared to a HUF 36.3 bln net loss earlier.

Another report by the MNB shows that the number of contactless cards issued in Hungary rose 41% in 2018 Q1 y.o.y., and contactless transaction numbers rose at a similar rate. As a result 74% of all domestic issued cards were contactless by Q1 2018, compared to 66% one year earlier.

The number of bank cards edged up 1% from a year earlier and was at 9.01 million but down from a peak of 9.12 million at the end of 2017. Around 86% of cards were debit cards.

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