Erste Bank Hungary Earnings Fall 59% in Q1-Q3

Banking

After-tax profit of Austrian-owned Erste Bank Hungary fell 59% year-on-year to HUF 18.3 billion in Q1-Q3, chairman-CEO Radovan Jelasity said at a press conference on Wednesday, according to a report by state news wire MTI.

Jelasity attributed the decline to higher costs and state burdens, as well as write-downs and provisioning. Costs were driven up by an extraordinary payment to the National Deposit Insurance Fund (OBA) to cover clients of failed Sberbank Magyarorszag, he added.

New credit outlays rose 44% to HUF 493 bln, lifting the stock of client loans, including corporate bonds, by 16% to HUF 2.286 trillion.

The lender's NPL ratio fell to 2.5% from 2.9% during the period.

The retail lending stock edged up 1% to HUF 1.137 tln as the market for mortgage loans and state-subsidized prenatal baby credit contracted, while demand for consumer credit grew. Outlays of personal loans increased by 11%.

The corporate lending stock rose 34% to HUF 1.122 tln.

Erste Bank Hungary said it will close for a day early in December when it closes the acquisition of Commerzbank Zrt.

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