ADVERTISEMENT

Impairment puts Erste Group in red in Hungary

Banking

BalkansCat/Shutterstock.com

Austriaʼs Erste Group booked a EUR 4.9 million first-half loss at its business in Hungary as impairment due to the coronavirus crisis weighed, state news wire MTI says, citing an earnings report released today.

Image by BalkansCat/Shutterstock.com

In the base period, Erste had a net income of EUR 71.8 mln.

The report shows impairment came to EUR 49.9 mln, compared to a provisions release of EUR 14.9 mln in the base period.

"Significantly higher risk costs...were caused by updated risk parameters with forward looking information used in the calculation of credit loss allowances and stage overlays as a consequence of [the] Covid-19 crisis," Erste said.

Net interest income fell 1.2% to EUR 103.7 mln. Net revenue from commissions and fees dropped 3.7% to EUR 87.3 mln.

Erste noted that it paid EUR 14.3 mln on the banking levy, EUR 22.3 mln in transaction duties, and contributed EUR 3.5 mln to the resolution fund during the period.

ADVERTISEMENT

MKIK: Local business tax should be maintained Analysis

MKIK: Local business tax should be maintained

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

Capital sees urban exodus during pandemic City

Capital sees urban exodus during pandemic

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.