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Non-bank lenders' H1 profits rise 18.4%

Non-bank lenders in Hungary recorded combined after-tax profits of Ft 24.225 billion in the first half of 2006, 18.4% more than in the same period a year earlier, figures published on Wednesday by the State Financial Supervisory Authority (PSzÁF) show.

Non-bank lenders' combined first-half interest revenue rose 13.8% year on year, while net revenue from fees and commissions was a negative Ft 8.511 billion, a 6% deterioration from H1 2005. Write-offs and risk provisions came to Ft 11.997 billion, showing a 3.8% improvement. General administration costs rose 24% to Ft 39.73 billion.
Non-bank lenders' pre-tax profits rose 14% to Ft 30.06 billion during the period. Their lending stock rose 13.7% to Ft 2,088.74 billion in the twelve months to June 30, 2006, and the quality of their portfolio deteriorated. Overdue payments accounted for 4.84% of the portfolio at the end of June, compared to 3.99% at the end of March. Overdue payments rose Ft 16 billion to Ft 65.9 billion during the period. Non-bank lenders' leasing portfolio also deteriorated, with overdue payments rising Ft 5.56 billion to Ft 17.3 billion to account for 2.8% of the total stock at the end of June, compared to 2.1% at the end of March.
Foreign currency-denominated lending continued to show the fastest growth in the portfolio, increasing 36.2% to Ft 1,673.03 billion by the end of June compared to the end of December to account for 80% of non-bank lenders' portfolio. During the same period, the stock of forint-denominated lending fell 31.7% to Ft 415.7 billion. Non-bank lenders' stock of vehicle loans was Ft 1,553.4 billion at the end of June. Forex loans accounted for 89.3% of the stock. The stock of real estate loans was Ft 169.54 billion, with forex lending accounting for 68.1% of the stock.
Banks continued to provide most of non-bank lenders' resources, accounting for 82% of the total at the end of June. The sector's combined net assets rose 15.9% to Ft 181.15 billion in the six months to June 30, 2006.