Erste Group losses in Hungary widen
Erste Group booked a €72.7 million net loss at its business in Hungary in the first half, growing from a €51.2 million loss in the same period a year earlier, the banking group said in its H1 report on Tuesday.
Net interest income fell 7.0% to €175.9 million. Erste Group said the decline caused by a government scheme allowing early foreign currency-denominated mortgage repayments at discounted exchange rates was offset by a shift of interest income from trading assets to net interest income.
Net fees and commissions dropped 7.6% to €45.3 million.
Risk provisions for loans and advances fell to €106.6 million in H1 from €154.6 million in the base period. Erste Group said the decline was triggered by legislative changes to a subsidy scheme for retail borrowers with FX loans applicable for the coming five years.
Average risk-weighted assets of the business in Hungary came to €3.489 billion in the period.
The Hungarian business's cost-to-income ratio improved to 38.2% from 41.4%.
Headcount at Erste Bank Hungary Group was 2,598 on June 12, down 11.9% from December 11 of the previous year.
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.