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Banking sector earnings climb more than 10% in Q1-Q3

Consolidated after-tax profit of the Hungarian banking sector rose 10.5% year-on-year to HUF 560 billion in Q1-Q3, data released by the National Bank of Hungary (MNB) on Friday show, state news wire MTI reports.

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The sectorʼs net interest revenue was up 10.1% at HUF 940 bln and net revenue from commissions and fees increased 13% to HUF 567 bln.

Write-offs and risk provisions came to HUF 29 bln up from HUF 19 bln in the base period.

Total assets of the sector stood at HUF 48.217 trillion at the end of Q3, up 15.4% from twelve months earlier. Lending stock rose 19% to HUF 30.254 tln. Stock of deposits increased 14.2% to HUF 38.223 tln.

The ratio of non-performing loans fell to 4.5% from 6.2% during the period. The NPL ratio was under 5% at 23 of the 35 financial institutions under the oversight of the MNB. The ratio was between 5% and 10% at nine banks and over 15% at three.

Consolidation in the sector increased as the market share of the countryʼs nine "large banks", based on total assets, rose to 81.8% from 81.3%.

Those large banks include Bank of China Limited Hungarian Branch, CIB, Erste, K&H, MKB, OTP, Raiffeisen Bank, Takarékbank and UniCredit. MKB, OTP, and Takarékbank are the only domestically controlled lenders among them; however, because of OTPʼs scale, the rate of domestic control in the sector stands at 58.3%.