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Bank levy, bad loans push Erste Bank Hungary into red

Erste Bank Hungary had consolidated IFRS pre-tax losses of HUF 8.04 billion in the first half of 2011 as the extraordinary banking levy and the steep rise in the non-performing loan ratio adversely affected performance, the bank said, announcing unaudited figures on Friday.

The losses compare to consolidated pre-tax profit of HUF 12.2 billion in H1 last year, and pre-tax profit of HUF 7.9 billion for all of last year.

The ratio of non-performing loans reached 15.1% at group-level by the end of June, the bank said.

The H1 part of the extraordinary banking tax totaled HUF 7.4 billion.

Total assets rose 8% in twelve months to HUF 3,299.9 billion on June 30, 2011, while net assets fell 10% to HUF 145.5 billion.