Erste Bank Hungary operating profit down 24.4% in Q1

MNB

Austriaʼs Erste Group booked a first-quarter loss of €200,000 at its business in Hungary, a big improvement over a net loss of €15.6 million in the base period, an earnings report released today shows, according to Hungarian news agency MTI.

Net interest income declined 18.2% to €45.9 mln mainly due to lower loan volumes and the impact of the consumer loan law. 

Net income from fees and commissions dropped 3.4% to €33.1 on lower fees from payments and card business. 

Operating expenses increased 15.4% to €49.9 mln due to the booking of the full-year contribution of €7.1 mln to the deposit insurance fund. 

Operating profit fell 24.4% to €32.7 mln. 

With operating expenses up and income down, the cost-to-income ratio rose to 60.4% from 50%. 

Total assets edged up half a percent to €6.465 trillion. 

Erste Bank Hungaryʼs headcount rose by 2.6% to 2,886 from the end of last year to the end of March. 

Erste Bank Hungary booked the amount it owes on the bank levy for the full year in Q1: €17.5 mln. It also booked €9.6 mln on the transaction duty. 

Erste Group CEO Andreas Treichl noted that “banking taxes continued to weigh”, but that in Hungary the government had followed through on its promise to reduce the bank levy, which led to saving of €25 mln. 

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