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Budapest Bank profit jumps in H1 as provisioning for lending losses drops

Budapest Bank, the Hungarian unit of GE Money Bank, had consolidated after-tax profit of HUF 11.16 billion in the first half, up 72% from the same period a year earlier largely because of a HUF 10 billion drop in risk provisioning, the bank said on Monday.

Budapest Bank had total assets of HUF 886.6 billion on June 30, down 5% from twelve months earlier. Stock of client and interbank loans fell 6% to HUF 675 billion while stock of client and interbank deposits dropped 6% to HUF 715 billion.

The bank had net revenue of HUF 44.2 billion in H1, down 6% from the same period a year earlier.

Retail lending stock, including car loans, fell 5.7% to HUF 468 billion. Within the stock, mortgage loans edged down 2% to HUF 217 billion. However, new mortgage loans signed during the period were up five-fold at HUF 4 billion.

Budapest Bank continues to offer a number of solutions to clients struggling with repayments, such as a moratorium on payment of principal, extension of the run of the loan and fixed repayments in the case of foreign currency-denominated loans.

Stock of SME loans, excluding credit extended by the bank's leasing division, rose 4% to HUF 219 billion.

New leasing contracts signed in H1 came to HUF 7.1billion, almost quadruple the amount in the base period.