ADVERTISEMENT

Erste Bank Hungary books HUF 908 mln Q1 loss

Banking

Erste Bank Hungary booked an after-tax loss of HUF 908 million in the first quarter as the lender paid an extraordinary contribution to the National Deposit Insurance Fund (OBA) after Russian-owned Sberbank went bust, chairman-CEO Radovan Jelasity said at a press conference, according to Magyar Nemzet.

Jelasity said Erste was required to pay HUF 7.9 billion to OBA because of Sberbank. He added that the Russian bank's failure shaved a total of HUF 75 bln off the profits of local lenders.

Jelasity noted that Erste had an after-tax profit of HUF 15.1 bln in the base period. Its net interest revenue rose 41.6%, and its revenue from commissions and fees climbed 12.6% in Q1 from the same period a year earlier.

Deputy-CEO for retail banking László Harmati said retail lending stock rose 8% in the 12 months to the end of March, but outlays in Q1 edged 1.9% lower.

Outlays of state-subsidized prenatal credit fell 21.9%, he added. Richárd Szabados, who heads the lender's corporate division, said more than 500 new clients opened corporate accounts at Erste in Q1, more than three times the number a year earlier.

Around one-third of them were former Sberbank clients, he added.

Community Project Promoting Solar Energy Starts in Budapest Energy Trade

Community Project Promoting Solar Energy Starts in Budapest

Hungary, Switzerland Update Double Taxation Avoidance Treaty Int’l Relations

Hungary, Switzerland Update Double Taxation Avoidance Treaty

Hungarian Unis Advance in QS Ranking Science

Hungarian Unis Advance in QS Ranking

White Party at The Duchess Coming This Weekend Drinks

White Party at The Duchess Coming This Weekend

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.