Write-downs weigh on banking sector profit in Q1 

Banking

Image by Shutterstock.com

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The central bank and financial market watchdog noted that the license of Russian-owned Sberbank Magyarország was withdrawn and the lender was ordered to be wound up in Q1.

ADVERTISEMENT

Bourse Turnover Reaches HUF 249 bln in November Figures

Bourse Turnover Reaches HUF 249 bln in November

MPs Approve Tax Changes Parliament

MPs Approve Tax Changes

Home Loan Rates Climb Over 10% Residential

Home Loan Rates Climb Over 10%

Countries Exchange Experiences for Better Production of Catt... Conferences

Countries Exchange Experiences for Better Production of Catt...

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.