Write-downs weigh on banking sector profit in Q1
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After-tax profit of Hungary's banking sector fell 57% year-on-year to HUF 78 billion in the first quarter, dragged lower by write-downs, state news wire MTI reports, citing data released by the National Bank of Hungary (MNB) on Friday.
Net interest revenue of the sector climbed 33% to HUF 506 bln and net revenue from commissions and fees rose 23% to HUF 261 bln.
Write-downs and risk provisions came to HUF 218 bln, well over the HUF 15 bln in the base period.
MNB said that the "dominant part" of the write-downs could be attributed to "a large-scale banking group".
The central bank and financial market watchdog noted that the license of Russian-owned Sberbank Magyarország was withdrawn and the lender was ordered to be wound up in Q1.
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