Lower risk costs continue to support banking sector profitability
Hungarian banksʼ combined after-tax profit in the first three quarters of 2016 almost tripled year-on-year from HUF 141.6 billion to HUF 416.2 bln on a big drop in risk costs, data released by the National Bank of Hungary (MNB) show, as reported by Hungarian news agency MTI.
Provisions plunged 83% during the period, from HUF 546.2 bln to HUF 91.5 bln.
Trends in the first three quarters were similar to those in the first half of the year.
Net interest income rose 5.8% to HUF 622.4 bln by the end of September 2016 as interest revenues fell 12% from the end of September 2015, while interest expenditures dropped at an even faster rate, declining by 34%.
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