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Erste Group books EUR 120 mln net profit in Q1-Q3

Banking

Erste Group, including Erste Bank Hungary, had EUR 120 million net profit in Hungary in January-September 2021, up from EUR 27.3 mln from the same period a year earlier, state news wire MTI says, citing a financial report published on Tuesday.

Net interest income grew by 19.8% annually to nearly EUR 193 mln "due to higher customer loan and deposit volumes as well as a positive contribution from securities and money market placements."

Income from fees and commissions was up 15.8% at more than EUR 152 mln on higher securities and payment fees.

Net trading result was up at EUR 24.9 mln from EUR 13.3 mln due to valuation effects.

Overall operating income climbed 20.7% to EUR 376 mln while operating expenses went up just 6.6% to EUR 170 mln on the back of higher personnel costs and depreciation.

Impairment costs fell significantly from EUR 59 mln to EUR 6 mln as "a consequence of last year's update of risk parameters with forward-looking information."

A loss of EUR 60 mln for other results was driven by the temporary booking of the estimated loss related to loan moratorium extension and the estimated interest refund related to revolving loans in the scheme. The line also included the banking tax of EUR 14.9 mln, transaction tax of EUR 35.7 mln and a EUR 5.7 mln contribution to the resolution fund.

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