Lendersʼ H1 profits down 1% to HUF 322 bln as costs rise


Hungarian lendersʼ consolidated combined first-half after-tax profit slipped 1% year-on-year to HUF 322 billion as costs rose, sector data released by the National Bank of Hungary (MNB) on Friday shows, according to a report by state news wire MTI.

The sectorʼs net interest revenue increased 10% to HUF 617 bln and net revenue from commissions and fees was up 9% at HUF 361 bln. But total operating revenue increased just 5% to HUF 1,062 bln because of declines in income from trading and exchange rate changes as well as "other income".

Operating costs climbed 11% to HUF 713 bln.

Lenders paid a combined HUF 43 bln in tax during the period.

Lendersʼ combined total assets stood at HUF 44,342 bln at the end of June, up 7% from twelve months earlier. Equity was up 13% at HUF 4,989 bln. Stock of loans rose 11% to HUF 27,500 bln. Stock of deposits increased 5% to HUF 35,228 bln.

The sectorʼs non-performing loan (NPL) ratio fell to 4.92% at the end of June from 6.59% twelve months earlier. The NPL rate for retail loans dropped to 8.27% from 11.72% during the period. The NPL ratio for corporate loans declined to 5.25% from 7.18%.

The MNB noted that the NPL ratio at 32 banks, or more than 90% of lenders, did not exceed 10%.


POPIHN Raises Forecast for Fuel Consumption Energy Trade

POPIHN Raises Forecast for Fuel Consumption

Hungarian Lawmakers Ratify Finland's NATO Accession Parliament

Hungarian Lawmakers Ratify Finland's NATO Accession

Nolato Partners With Happy at Work HR

Nolato Partners With Happy at Work

Sümeg Castle Reopens History

Sümeg Castle Reopens


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
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.