Pre-tax profit reached HUF 39 bln from a HUF 486 bln loss a year earlier.

The sectorʼs net interest revenue fell 16.2% to HUF 793 bln as interest rates fell. Net revenue from commissions and fees dropped 46% to HUF 60 bln.

Operating costs grew 3.1% to HUF 708 bln.

The sectorʼs total assets were practically flat at HUF 32.886 trillion. Net assets fell 3% to HUF 525 bln.

Net lending stock, adjusted for losses and revaluations, was down 7% at HUF 14.727 tln. Corporate lending stock fell 10% to HUF 5.303 tln. Retail lending stock slipped 13% to HUF 5.062 tln.

Gross lending stock was down 8% at HUF 16.337 tln with corporate lending stock falling 12% to HUF 5.937 tln and retail lending stock also falling 12% to HUF 5.883 tln.

The ratio of non-performing loans – those past 90 days due – to gross loans fell to 9.8% from 13.8% in the corporate sector and to 17.6% from 19% in the retail sector from the end of 2014 to the end of 2015.

The MNB said lower ratios in the corporate sector could be explained by a HUF 250 bln fall in the volume of NPL stocks while in the retail sector portfolio cleanups, borrowers relief legislation and FX conversions reduced NPL volumes.

As a significant change, the gross ratio of FX loans for the retail sector fell to 0.9% from 52.8% from the end of 2014 to the end of 2015. The ratio of FX corporate loans also decreased, but at a far slower pace, from 48.7% to 45.9%. 

The Tier One full capital adequacy ratio of the system was a preliminary 19.7% at the end of 2015, the lowest quarterly ratio for 2015, but still up from 19.3% at the end of 2014.