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Erste Bank Hungary to pay HUF 20 bln dividend

Erste Bank Hungary will pay its owners a HUF 20 billion dividend on last yearʼs earnings, the lender said on Tuesday after a shareholdersʼ meeting, state news agency MTI reported.

Hungaryʼs state-owned Corvinus Zrt. and the European Bank for Reconstruction and Development (EBRD) each hold 15% stakes in Erste Bank Hungary.

Despite lower provisions releases and one-offs, after-tax profit rose 2.1% to HUF 61 bln, according to IFRS. 

Total assets stood at HUF 2.564 trillion at the end of 2018, up 15% from 12 months earlier.

The bankʼs net stock of client loans increased 14.8% to HUF 1.29 tln, while client deposits were up 12.3% at HUF 1.73 tln. Shareholdersʼ equity increased 5% to HUF 358 bln. The cost-to-income ratio improved from 54.1% to 48.8%.

Radován Jelasity, who was re-elected chairman-CEO of Erste Bank Hungary for another five years, after already heading the lender for eight years, said that the bankʼs management expects continued growth in 2019, although at a more moderate pace.

Erste Bank Hungary aims to achieve the 10% ROE characteristic for the sector in the mid-term, he added.