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.

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