Bloomberg: Nagy says banking industry’s profits to improve by 2019

Banking

Márton Nagy, Executive Director of the Hungarian National Bank (MNB) says the Hungarian banking industry may break even this year and see earnings comparable to regional peers by 2019, according to an interview Friday.

Despite the banking industry’s difficulties this year, including converting foreign-currency loans to forints and facing a personal bankruptcy law, Nagy said return on equity could rise between 10% and 12% in the coming three to four years. According to data from Bloomberg, this would put Hungary on track to reach levels such as those found in Poland.

Return on equity has been negative in the past four years. Hungarian banks have Europe’s highest banking tax and were forced by the government to reimburse borrowers of foreign-currency mortgages.

Hungaryʼs Prime Minister Viktor Orbán has pledged to gradually lower the bank tax, and the government is expected to cut the special levy to 0.31% of total assets in 2016 from 0.53% this year and will lower the tax further between 2017 and 2019, according to Bloomberg.

ADVERTISEMENT

ÁKK Exchanges HUF 20 bln of Bonds at Wednesday Switch Auctio... Debt

ÁKK Exchanges HUF 20 bln of Bonds at Wednesday Switch Auctio...

Hungary Makes Proposals to Ease Administrative Burden for EU... EU

Hungary Makes Proposals to Ease Administrative Burden for EU...

MOL Signs Antwerp Declaration for a European Industrial Deal Deals

MOL Signs Antwerp Declaration for a European Industrial Deal

Investors of the Year in Limelight at Hipa’s Award Ceremony Awards

Investors of the Year in Limelight at Hipa’s Award Ceremony

SUPPORT THE BUDAPEST BUSINESS JOURNAL

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.