Erste Bank Hungary loss shrinks in Q1-Q3

MNB

Erste Bank Hungaryʼs net loss in Q1-Q3 2015 narrowed to €47.2 mnl from €370.7 mln in the same period a year earlier as a €360.8 mln provision related to the Hungarian consumer loan law did not recur, according to a consolidated earnings report by Erste Group published today.

Net interest income fell 23.4% to €157.6 mln mainly due to lower loan volumes and lower contributions from securities.

Net income from fees and commissions edged down 0.2% to €103.5 mln.

Operating expenses increased by 4.3% to €132 mln on the back of higher personnel costs following temporary hiring to execute an FX conversion program.

Headcount increased by 3.9% from 2,766 at the end of December 2014 to 2,873 at the end of September 2015.

Operating results fell 31.3% to €131.5 mln and the cost/income ratio rose to 50.1% from 39.8%.

Erste paid €74.6 mln on the bank levy and financial transaction duty.

Erste Bank Hungary had total assets of €6.21 bln at the end of September, down 2.55% from twelve months earlier.

The NPL ratio of the Hungarian unit was 21.9% as of September 30, with the volume of non-performing loans reaching €789 mln.

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