ADVERTISEMENT

Erste Bank Hungary H1 loss narrows

MNB

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.

ADVERTISEMENT

Consumer, business confidence reach 2-year high - GKI Analysis

Consumer, business confidence reach 2-year high - GKI

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

Budapest airport shuttle bus service expanded City

Budapest airport shuttle bus service expanded

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.