Erste Q1 earnings in Hungary lifted by moratorium base effect
Austria's Erste Group booked net income of EUR 40.1 million at its business in Hungary in the first quarter, climbing from EUR 9.1 mln in the base period, state news wire MTI reports, citing an earnings report released this week.
Net interest income rose 20% to EUR 66.1 mln and net revenue from commissions and fees increased 8% to EUR 49.2 mln.
Earnings rose in part because of a loss booked in the base period related to a repayment moratorium.
Hungary's government-mandated a blanket moratorium on loan repayments last spring to ease the economic fallout from the coronavirus crisis. The moratorium is set to end on June 30, 2021.
Moratorium-related losses raised the Hungarian business's loss on the "other result" line to EUR 41.2 mln in the base period, nearly double the EUR 21.2 mln loss in Q1 2021.
Erste Group noted that the "other result" line also includes the EUR 14.7 mln the Hungarian business paid on the bank levy, EUR 11.6 mln for the transaction duty and a EUR 4 mln contribution to the resolution fund.
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.