Erste Bank Hungary pre-tax profit up slightly in 2018


Erste Bank Hungary had pre-tax profit of HUF 61.3 billion in 2018, up more than HUF 1 bln from the previous year, even as write-backs and other one-off items improving results fell by more than HUF 10 bln from a year earlier, Chairman-CEO Radován Jelasity said Friday.   

Ersteʼs cost-to-income ratio improved to 48.8% at the end of 2018, from 54.1% a year earlier, Jelasity said.

The bankʼs loan-to-deposit ratio was 74.5% last year, as deposits amounted to HUF 1.73 trillion and the stock of loans came to HUF 1.29 tln. Client deposits grew 12.3%, while client loans were up 14.8%.

Operating revenues rose 10%, while expenditures were almost unchanged. As a result, operating profit rose 22.4% to HUF 71 bln.    Non-performing loans (NPLs) fell to a record low of 3.6%, from 5.1% a year earlier.

László Harmati, head of the bankʼs retail division, said retail loans grew 7.1% to HUF 730 bln last year. The bankʼs market share of new mortgage loan disbursements rose from 8% to 10%. Erste projects a 10% increase in home loan placements this year, he added.

In new personal loan outlays, the bankʼs market share rose to 15%, from 10% a year earlier, Harmati noted.

Retail client assets managed by the Erste Group in Hungary, including investments and deposits, grew more than 11% to HUF 2.6 tln, with investments accounting for 60% of the total.

Richárd Szabados, head of Ersteʼs corporate division, said the bankʼs stock of corporate loans grew 21% to more than HUF 600 bln in 2018, compared to the market-average growth of 14%. Ersteʼs market share in corporate lending rose to more than 7%, from 4% three years earlier. The bank aims to become one of the top three biggest providers of corporate loans in 2-3 years.

In the SME segment, new placements grew 16%, which resulted in a 23% increase in the total volume, Szabados said. The ratio of NPLs in the corporate sector remains below 1%, he added.

Paks II Work 'Rumbling Ahead,' Says Szijjártó Power

Paks II Work 'Rumbling Ahead,' Says Szijjártó

Hungary to Host Next EPC Summit Int’l Relations

Hungary to Host Next EPC Summit

New Tenants at Academia Offices Office Market

New Tenants at Academia Offices

Visitor Numbers, Guest Nights Climb in H1 Tourism

Visitor Numbers, Guest Nights Climb in H1


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.