Profits of Hungarian brokerages soar in 2017


Investment services companies closed the year 2017 with combined net profit of more than HUF 6 billion, some 50% more than the preceding year, fresh data from the National Bank of Hungary (MNB) reveal. At the same time, costs increased more rapidly than revenues, noted a report by business news portal

Similarly high profit was last seen in the sector prior to the introduction of the special tax on financial institutions, noted

The report points to several factors behind the increasing profit. On the one hand, the market continued to be consolidated last year, with numerous smaller, loss-making brokerages shutting up shop, while the remaining major players proved profit-making.

At the same time, turnover increased amid a low interest rate environment and rising stock exchange activity luring many more small investors to the equity market.

Revenues across the investment services sector swelled to HUF 38.68 billion, an increase of some 21% on 2016, and the second highest figure of all time. The record was in 2014, recalled, when brokerages cashed in to the tune of over HUF 40 bln.

Less encouraging news was that expenditures of investment services firms have been growing at a more rapid pace than revenues, amounting to over HUF 18 bln in 2017, around a third more than the preceding year. Among reasons for this, cited supervisory expectations, continuous IT developments, and the costs of preparations for implementation of the updated Markets in Financial Instruments Directive (MiFID II) from January 3, 2018.


Gen Gov't Deficit to Reach 6.1% of GDP in 2022 - Varga Analysis

Gen Gov't Deficit to Reach 6.1% of GDP in 2022 - Varga

Horthy Statue to be Unveiled in Parliament Parliament

Horthy Statue to be Unveiled in Parliament

UPS Appoints Regional Director Appointments

UPS Appoints Regional Director

Completion of Metro Line M3 Renovation Delayed City

Completion of Metro Line M3 Renovation Delayed


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.