Hungary banking sector profits jump on lower provisions

Banking

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First-half after-tax profit of Hungarian banks rose 297% year-on-year to HUF 405 billion on a big decline in provisions and write-downs, state news wire MTI reports , citing data released by the National Bank of Hungary (MNB).

Banks' net interest revenue increased 11% to HUF 770 bln, while net revenue from commissions and fees climbed 10% to HUF 441 bln.

Provisions and write-downs came to HUF 38 bln in H1, a fraction of the HUF 251 bln in the base period.

Total assets of the banking sector came to HUF 63.765 trillion at the end of June, up 16% from 12 months earlier. Lending stock increased 13% to HUF 39.817 tln and stock of deposits rose 17% to HUF 51.920 tln.

In the loan book, the NPL ratio stood at 3.4%, down from 4% a year earlier.

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