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Lower profit, expanding lending at CIB Bank

The first-half earnings report of Italian-owned CIB Bank shows net profit of HUF 9.5 billion. This is lower than the HUF 12.9 bln recorded a year earlier, although at that time the figure was boosted by a one-off item, the bank told state news wire MTI on Wednesday.

The bankʼs consolidated earnings reveal revenues of HUF 31.0 billion, down 22.2% from the corresponding period of 2016.

Operating costs fell 12.9% to HUF 18.9 bln, excluding the special bank levy and the transaction duty. The bank levy amounted to HUF 3.8 bln and the transaction duty HUF 5.1 bln in the first half of 2017.

Net interest income came to HUF 10.8 bln, down 23.1% from a year earlier. Net commission income rose 0.9% to HUF 14.0 bln, while profit from trading was down 2.8% at HUF 5.1 bln. Other operating revenues were down due to the effect of a one-off item in 2016, namely the revenue from sale of a holding in Visa Europe.

New loan outplacements grew by 24% in the retail segment and by 149% in the corporate segment from a year earlier. The non-performing loan (NPL) ratio fell to 6.5% of the total lending portfolio, down 2.9 percentage points from December 2016.

Total assets stood at HUF 1,582 bln at the end of June, compared to HUF 1,629 bln a year earlier.

The groupʼs capital adequacy ratio was above 20% in June 2017.

Net assets fell 5.6% to HUF 201.1 bln as CIB repaid HUF 36 bln it received from its parent bank Intesa Sanpaolo to cover losses in 2013.

CIB Bank said it aims to continue its growth-oriented strategy, focusing on the retail and SME segments. It also plans to further clean up its lending portfolio and continue the digitalization and innovation processes, it added.