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Banking sector profitable, faces slowdown

Hungarian banks on average produce higher profitability indicators than banks in Western Europe, although growth in the sector is expected to slow down in the future, business daily Világgazdaság reported on Monday, citing a conference on the European banking system. Hungarian banks have shown outstanding figures in terms of return on equity (ROE) compared to the average in Western Europe and even compared with other emerging markets in the region, Világgazdaság reported.

Hungary's banking sector has developed admirably over the past fifteen years, privatization has been successful, and currently ten large banks share the market, CEO of Eye Watch Global Network Imre Kiss told the conference. While profits could continue to rise, the current high growth rate in the sector is expected to shrink on uncertainties in monetary convergence and banks will be increasingly looking for acquisitions abroad, Kiss told Világgazdaság.