Erste Group earnings in Hungary fall as windfall profit tax weighs

Banking

Austria's Erste Group booked a first-half net income EUR 6.6 million at its business in Hungary, dropping 92% from the base period on the impact of a tax on windfall profit, news agency MTI writes, citing an earnings report released on Monday.

Net interest income at the business climbed 52% to EUR 183 mln and net revenue from commissions and fees increased 8pc to EUR 106.7 mln, but a EUR 49.9 mln, full-year payment for the windfall profit tax weighed on the bottom line.

Erste Group also noted an increase in operating expenses, driven in part by an extraordinary contribution Erste Bank Hungary paid to the National Deposit Insurance Fund (OBA) in Q1 after Russian-owned Sberbank went bust.

Erste Group Hungary had total assets of EUR 12.266 billion at the end of June, up 5% from 12 months earlier. Client deposits rose 10% to EUR 8.735 bln.

ADVERTISEMENT

Hungarians Want to Live to 96 Analysis

Hungarians Want to Live to 96

Parl't approves 2023 budget Parliament

Parl't approves 2023 budget

Wizz Air Malta Names Managing Director Appointments

Wizz Air Malta Names Managing Director

2 Protests to Take Place in Budapest on Aug 20 City

2 Protests to Take Place in Budapest on Aug 20

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.