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Bank profits continue to fall in first half of 2010

Banks in Hungary generated after-tax profit of HUF 138.9 billion in the first half of 2010, down 14.4pc from HUF 162.2 billion in H1 of 2009, financial-regulator PSzÁF announced.

Banks in Hungary had total assets of 29,828.9 billion at the end of H1 2010, compared to total assets of HUF 2,874.7 billion at the end of H1 of 2009.

The banks' stock of loans was HUF 19,033.4 billion at the end of the first half of this year, up 0.77% yr/yr, while their stock of deposits was HUF 11,682.7 billion at the end of H1, down 2.75% yr/yr.

Banks in Hungary have sustained yr/yr losses in first-half profit for three consecutive years.

In H1 1010, risk provisions grew to a new record of HUF 203.7 billion compared to HUF 188.5 billion in H1 2009. Last time provisioning against bad loans eased was in H1 2008 when the total amount set aside by banks fell to HUF 29.7 billion from HUF 48.7 billion in H1 2007.

Pre-tax profits of banks in Hungary was HUF 162.1 billion in H1 after HUF 192.4 billion in H1 2009. Banks must pay a special levy of at least HUF 110 billion this year. (MTI-Econews)