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Impairment puts Erste Group in red in Hungary

Austriaʼs Erste Group booked a EUR 4.9 million first-half loss at its business in Hungary as impairment due to the coronavirus crisis weighed, state news wire MTI says, citing an earnings report released today.

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In the base period, Erste had a net income of EUR 71.8 mln.

The report shows impairment came to EUR 49.9 mln, compared to a provisions release of EUR 14.9 mln in the base period.

"Significantly higher risk costs...were caused by updated risk parameters with forward looking information used in the calculation of credit loss allowances and stage overlays as a consequence of [the] Covid-19 crisis," Erste said.

Net interest income fell 1.2% to EUR 103.7 mln. Net revenue from commissions and fees dropped 3.7% to EUR 87.3 mln.

Erste noted that it paid EUR 14.3 mln on the banking levy, EUR 22.3 mln in transaction duties, and contributed EUR 3.5 mln to the resolution fund during the period.