MNB: Hungarian banks see profits rise by 209% in Q1

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Combined first-quarter after-tax profit of Hungarian banks rose 209% compared to the same period a year earlier, reaching HUF 191.4 billion, data released by the National Bank of Hungary (MNB) today show, according to Hungarian news agency MTI.

According to the central bank, higher revenues from financial and investment services and dividends, as well as a lower bank levy, were chief factors contributing to the rise in profits, MTI reported. Lendersʼ combined pre-tax profit rose 168% to HUF 198.5 bln during the period, MTI added. 

The total assets of the sector stood at HUF 33.144 trillion at the end of March, up approximately 3% from twelve months earlier, according to the report cited by MTI.

In data published by the central bank, net interest revenue rose 11% to HUF 213.8 bln, net revenue from commissions increased 2% to HUF 110.8 bln and revenue from dividends jumped 56% to HUF 88.5 bln, MTI said.

Return on assets rose to 0.5% in the four quarters ending in Q1 from 0.1% in Q1-Q4 2015, according to a statement released with the data, MTI reported, adding that return on equity rose to 5.2% from 1.1% during the same period.

Revenue from financial and investment services came to HUF 38.5 bln, improving from negative HUF 2.1 bln in the base period, according to MTI. The line “other non-interest income”, which includes the bank levy, shows negative HUF 103.3 bln, narrowing 15% from negative HUF 121.7 bln in the base period. 

Operating expenses were practically flat at HUF 164.1 bln, central bank data show.

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