Banking sector profits double in Q1-Q3 

Banking

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Net profit of Hungary's banking sector rose 111% year-on-year to HUF 642 billion in Q1-Q3, as impairment declined and business volume grew, data released by the National Bank of Hungary (MNB) on Thursday show, according to a report by state news wire MTI.

Net interest revenue increased 14% to HUF 1.198 trillion. Net revenue from commissions and fees climbed 12% to HUF 680 bln.

Impairment and provisions came to HUF 95 bln, well under the HUF 296 bln in the base period.

The sector's total assets stood at HUF 66.815 tln at the end of September, up 16% from 12 months earlier. Lending stock rose 15% to HUF 41.877 tln and stock of deposits increased 16% to HUF 54.209 tln.

The rate of NPLs over 90 days past due in the lending portfolio reached 1.6% at the end of September, down from 2.5% a year earlier. The rate reached 3.7% for the retail portfolio and 1.4% for the corporate portfolio.

Hungary's government rolled out a blanket repayment moratorium in the spring of 2020 to ease fallout from the coronavirus crisis. From November 1, participation in the moratorium was limited to retail borrowers whose incomes have fallen, the jobless, pensioners, and parents raising children, while corporate borrowers must show a 25% fall in revenue to join.

A report released by the central bank a week earlier shows around 5% of lenders' retail portfolio is in the conditional repayment moratorium, although 23% was eligible to participate. Just 2% of banks' corporate loan book is in the conditional moratorium, while 5% of the lending stock was eligible for participation.

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