Erste Bank Hungary H1 After-Tax Profit Reaches HUF 46.7 bln

Banking

First-half after-tax profit of Austrian-owned Erste Bank Hungary reached HUF 46.7 billion, climbing from HUF 4.4 bln in the base period, chairman-CEO Radovan Jelasity said on Wednesday, news agency MTI writes.

 Jelasity attributed part of the increase to one-offs, such as the impact of a contribution to the National Deposit Insurance Fund (OBA) to cover the former clients of failed Russian-owned Sberbank Magyarország in the base period and a rebate related to that contribution in H1. 

Erste Bank Hungary's operating income climbed to HUF 93.6 bln in H1 from HUF 44 bln in the base period. 

The stock of client loans, including bond subscriptions, stood at HUF 2.346 trillion at the end of June, up more than 10% from 12 months earlier.

The lender's non-performing loan ratio dropped to 2.8% from 3.3%. Retail lending stock edged up 2% but outlays fell 34% in H1 from the same period a year earlier. 

Outlays to small businesses rose 20% on the back of state-subsidized credit schemes. The stock of client deposits fell 6% to HUF 3.25 tln.

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