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Budapest Bank posts HUF 9.2 bln after-tax profit in H1

Hungarian banking group Budapest Bank, owned by the state-owned Hungarian Development Bank (MFB), had HUF 9.2 billion consolidated after-tax profit during the first half of 2018, compared to HUF 9.91 bln in H1 2017, the bank said on Monday.   

The bank noted that for the first time ever this yearʼs report has been assembled according to IFRS accounting standards, while the report in 2017 was compiled using Hungarian accounting standards, therefore the numbers are not fully comparable. 

Total assets of Budapest Bank Group were up 18.3% in H1 at HUF 1,146 bln. Liabilities to customers were up 27.6% at HUF 808 bln, while claims were up 17.6% at HUF 709 bln.

Net revenue rose 3.2% to HUF 34.9 bln, while operating costs, not calculating depreciation, edged up 1% to HUF 19.4 bln.

ROA was down from 2.02% to 1.69%, and ROE also fell from 14.75% to 12.22%. The bankʼs capital adequacy ratio increased from 15.19% to 15.39%.

Budapest Bank said the group continues to be in balance and profitable. Profitability was lifted by credit outlays, namely mortgage and personal lending, and improving quality of the credit portfolio.

The corporate lending stock rose 28% to HUF 652 bln, excluding micro companies and leasing. The leasing stock was up 27% at HUF 113 bln.