Erste Group reports net income down 77%

Banking

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Austriaʼs Erste Group booked net income of EUR 27.3 million at its business in Hungary in Q1-Q3, down 77% from the same period a year earlier as impairment due to the pandemic weighed, according to an earnings report released on the website of the Budapest Stock Exchange. 

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Net interest income of the business edged up 2% to EUR 160.9 mln, while net revenue from commissions and fees fell almost 5% to EUR 131.5 mln. Erste Group booked EUR 59.2 mln of impairment because of the COVID-19 crisis during the period, after freeing up EUR 18.3 mln in provisions in the base period.

Erste Group noted that the business paid EUR 14.4 mln for the bank levy and EUR 33.1 mln for the transaction duty in Q1-Q3. It contributed EUR 3.5 mln to the resolution fund. It said the data is calculated on a constant currency basis, adding that the forint weakened 7.8% against the euro during the period.

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