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Banking Sector Profit Climbs 37% in Q1

Banking

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First-quarter after-tax profit of Hungarian banks rose 37% year-on-year to HUF 441 billion, data released by the National Bank of Hungary (MNB) on Wednesday show.

Lenders' net interest income increased 7% to HUF 873 bln. Net revenue from commissions and fees rose 15% to HUF 355 bln.

Banks released HUF 16 bln of risk provisions after booking HUF 22 bln of writedowns in the base period.

Banks' return on equity reached 18.1%, rising 2.1 percentage points from the base period.

Lenders' total assets stood at HUF 94.314 trillion at the end of March, up 10% from 12 months earlier. Lending stock rose 6% to HUF 50.305 tln. The stock of deposits increased 5% to HUF 71.138 tln.

The NPL ratio fell to 2.5% from 3%.

The five biggest lenders had 74.2% market share, based on total assets. The ten biggest lenders controlled 93% of the market.

The domestic ownership ratio in the sector stood at two-thirds.

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