Erste Bank Hungary H1 loss narrows
Erste Bank Hungaryʼs net loss in H1 2015 narrowed to €35.1 mln from €142.9 mln in the same period a year earlier as a €130.3 mln provision related to the Hungarian consumer loan law did not recur, a consolidated earnings report by Erste Group published late yesterday reveals, according to news agency MTI.
Net interest income fell 20.4% to €110.6 mln mainly due to lower loan volumes and lower contribution from bonds.
Net income from fees and commissions rose 2.1% to €70.1 mln mostly because of higher fees from assets management.
Operating expenses increased by 4.1% to €87.1 mln on the back of higher personnel costs following temporary hiring to execute an FX conversion program.
Headcount increased by 5.1% from 2,766 at the end of December 2014 to 2,907 at the end of June 2015.
Operating results fell 29.5% to €90.7 mln and the cost/income ratio was up from 39.4% to 49%.
Erste paid €65.6 mln on the bank levy and financial transaction duty.
Erste Bank Hungary had total assets of €5.87 bln at the end of June, down 19.5% from twelve months earlier.
Erste Group CEO Andreas Treichl said that he was confident the Hungarian unit could turn a profit in 2016 and that talks are going in the right direction with Citibank regarding buying its retail business in Hungary.
Andreas Treichl praised the Hungarian government for its efforts in dealing with the problems caused by failed brokerage Quaestor and said a deal between Erste and the government about it buying a stake in the bank could be wound up by the end of the year.
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