Hungarian banking sector finishes 2015 just under break-even
shutterstock
Hungaryʼs banking sector had a combined after-tax loss of HUF 3 billion in 2015, a big improvement over a HUF 541 bln loss in the previous year, when lenders were required to pay compensation to clients under borrowers relief legislation, fresh data from the National Bank of Hungary show, Hungarian news agency MTI reported yesterday.
Pre-tax profit reached HUF 39 bln from a HUF 486 bln loss a year earlier.
The sectorʼs net interest revenue fell 16.2% to HUF 793 bln as interest rates fell. Net revenue from commissions and fees dropped 46% to HUF 60 bln.
Operating costs grew 3.1% to HUF 708 bln.
The sectorʼs total assets were practically flat at HUF 32.886 trillion. Net assets fell 3% to HUF 525 bln.
Net lending stock, adjusted for losses and revaluations, was down 7% at HUF 14.727 tln. Corporate lending stock fell 10% to HUF 5.303 tln. Retail lending stock slipped 13% to HUF 5.062 tln.
Gross lending stock was down 8% at HUF 16.337 tln with corporate lending stock falling 12% to HUF 5.937 tln and retail lending stock also falling 12% to HUF 5.883 tln.
The ratio of non-performing loans - those past 90 days due - to gross loans fell to 9.8% from 13.8% in the corporate sector and to 17.6% from 19% in the retail sector from the end of 2014 to the end of 2015.
The MNB said lower ratios in the corporate sector could be explained by a HUF 250 bln fall in the volume of NPL stocks while in the retail sector portfolio cleanups, borrowers relief legislation and FX conversions reduced NPL volumes.
As a significant change, the gross ratio of FX loans for the retail sector fell to 0.9% from 52.8% from the end of 2014 to the end of 2015. The ratio of FX corporate loans also decreased, but at a far slower pace, from 48.7% to 45.9%.
The Tier One full capital adequacy ratio of the system was a preliminary 19.7% at the end of 2015, the lowest quarterly ratio for 2015, but still up from 19.3% at the end of 2014.
Lenders' Home Loan Outlays at HUF 344 bln in H2 2023
EC Calls on Hungary to Comply With CJEU Ruling on Asylum See...
Poland Retail Sales Growth Stable in March
Hungary Launches HUF 15 bln Tourism Sector Support Program
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.
