Hungarian banking sector profit falls 12% in Q1-Q3
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Combined after-tax profits of Hungaryʼs banking sector fell 12% year-on-year to HUF 425 billion in the first three quarters of 2018, due to higher costs and a drop in released provisions, data published by the National Bank of Hungary (MNB) on Friday show.
The sectorʼs net interest revenue edged down 2% to HUF 574 bln, while net revenue from commissions and fees rose 5% to HUF 406 bln, state news wire MTI reported. Operating costs climbed 17% to HUF 763 bln.
Banks released HUF 42 bln in provisions in Q1-Q3, well under the HUF 126 bln freed up in the base period.
The sectorʼs total assets came to a little over HUF 38.9 trillion at the end of September, up 9% from twelve months earlier.
Banksʼ net lending stock rose 11% to over HUF 20.08 tln. The corporate loan portfolio expanded 16% to just under HUF 7 tln, while the retail portfolio grew 7% to just over HUF 5.7 tln.
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