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Lendersʼ H1 profits down 1% to HUF 322 bln as costs rise

Hungarian lendersʼ consolidated combined first-half after-tax profit slipped 1% year-on-year to HUF 322 billion as costs rose, sector data released by the National Bank of Hungary (MNB) on Friday shows, according to a report by state news wire MTI.

The sectorʼs net interest revenue increased 10% to HUF 617 bln and net revenue from commissions and fees was up 9% at HUF 361 bln. But total operating revenue increased just 5% to HUF 1,062 bln because of declines in income from trading and exchange rate changes as well as "other income".

Operating costs climbed 11% to HUF 713 bln.

Lenders paid a combined HUF 43 bln in tax during the period.

Lendersʼ combined total assets stood at HUF 44,342 bln at the end of June, up 7% from twelve months earlier. Equity was up 13% at HUF 4,989 bln. Stock of loans rose 11% to HUF 27,500 bln. Stock of deposits increased 5% to HUF 35,228 bln.

The sectorʼs non-performing loan (NPL) ratio fell to 4.92% at the end of June from 6.59% twelve months earlier. The NPL rate for retail loans dropped to 8.27% from 11.72% during the period. The NPL ratio for corporate loans declined to 5.25% from 7.18%.

The MNB noted that the NPL ratio at 32 banks, or more than 90% of lenders, did not exceed 10%.