Erste Bank Hungary net income up 23% in 2017

MNB

Net income of the Hungarian business of Austriaʼs Erste Group rose 23.4% to EUR 164.9 million last year, an earnings report released Wednesday shows. Erste Bank Hungaryʼs consolidated total assets stood at EUR 7.151 billion at the end of the year, up 8.2% from twelve months earlier.

Net interest income was up 14.4% at EUR 198.4 mln on the back of the acquisition of Citibankʼs retail portfolio. Most of the loans in the portfolio are unsecured, Erste said, cited by national news agency MTI. Net income from commissions and fees increased 11% to EUR 157.4 mln due to higher card payments and securities fees in the retail business, also supported by the former Citibank portfolio.

Operating expenses rose 12.9% to EUR 220.8 mln, but the businessʼs cost-to-income ratio fell from 57.5% to 55.9%.

Erste Group booked a EUR 55.3 mln cost for the bank levy at the business and made a EUR 8.7 mln contribution to the deposit insurance fund.

Erste Bank Hungaryʼs stock of client loans increased 9.9% to EUR 3.621 bln. Its stock of client deposits rose 8.4% to EUR 4.965 bln. Ersteʼs headcount in Hungary rose 6.1% to 3,047 at the end of December.

Erste Group is not interested in acquiring Budapest Bank, a lender the state of Hungary plans to part with, Erste Group CEO Andreas Treichl said, fielding a question by business news site portfolio.hu at a press conference after the earnings report was released.

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