Hungary banking sector profits up 10% in 2018

Telco

Combined after-tax profits of Hungarian banks rose 10% to HUF 648 billion last year, according to data compiled by the National Bank of Hungary (MNB). Total assets of the banking sector came to HUF 42.1 trillion at the end of 2018, up 8% from twelve months earlier.

Net interest revenue rose 8% to HUF 1.193 tln, while net revenue from commissions and fees also increased 8% to HUF 678 bln, state news wire MTI reported Tuesday.

Net trading income jumped 127% to HUF 68 bln, while banks booked a HUF 98 bln gain on net exchange rate differences, up 17%.

Total operating revenue of the sector rose 19% to HUF 2.101 tln, while operating costs climbed 15% to HUF 1.320 tln.

The sector released HUF 58 bln of risk provisions in 2018, after making provisions of HUF 18 bln in the previous year.

The lending stock of Hungarian banks rose 10% to HUF 25.439 tln in 2018. The stock of deposits climbed 8% to HUF 33.728 tln.

The sectorĘĽs non-performing loan (NPL) ratio fell from 7.5% to 5.4%.

Domestic ownership still over 55%

The market share, based on total assets, of domestically controlled credit institutions reached 55.4% at the end of 2018, edging down slightly from 55.7% twelve months earlier. HungaryĘĽs government set a goal in 2013 to raise the domestic ownership rate in the banking sector to at least 50%, recalled MTI.

The MNB classifies nine lenders as "large banks" in the fresh data, one more than in 2017, with the addition of Bank of China Limited Hungarian Branch to the list. The other large banks - all banking groups - are CIB, Erste, K&H, MKB, OTP, Raiffeisen Bank, TakarékBank and UniCredit. MKB, OTP and TakarékBank are the only domestically controlled groups among them.

Scope Assigns MOL BBB- Issuer Rating Ratings

Scope Assigns MOL BBB- Issuer Rating

Budapest Residents to Weigh in on Rákosrendező Development P... Issues

Budapest Residents to Weigh in on Rákosrendező Development P...

AutoWallis Becomes Importer of Geely Group’s Commercial EV B... Automotive

AutoWallis Becomes Importer of Geely Group’s Commercial EV B...

These Are the Most Sleep-friendly Hotels in Hungary Hotels

These Are the Most Sleep-friendly Hotels in Hungary

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.