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Profit of banks in Hungary falls 20.7% in H1

Hungary's banks had combined unconsolidated pre-tax profit of HUF 176.5 billion in the first half of 2010, down 20.7% from H1 of 2009, preliminary data from the International Training Center for Bankers (ITCB) reveals.

ITCB said despite figures show a contracting bank sector, there are a larger number of banks showing declining losses.

The stock of retail loans for banks rose HUF 772 billion in twelve months to the end of the first half of the year, while the stock of foreign-currency-denominated retail loans fell 5.2% during the period. The stock of forint-based retail loans rose 3.5%, or HUF 90 billionyx.

The stock of corporate loans slipped 3% or HUF 216 billion compared to the same period last year. However, compared to the end of 2009, corporate loans rose 1.3% or HUF 129 billion, with forint-based loans falling 3.1%, or HUF 101 billion and foreign-currency-denominated rising 5.2%, or HUF 230 billion.

The stock of deposits for the bank sector fell 3.2%, or HUF 414 billion yr/yr, but only 2% or, HUF 266 billion, in the first half. Corporate deposits rose HUF 204 billion in the first six months, while domestic, foreign and local-council deposits contracted by HUF 272 billion, HUF 185 billion and HUF 86 billion, respectively.

The loan/credit ratio, which reflects the bank sector's liquidity position worsened from 151% at the end of 2009 to 163%.

The bank sector's ROE fell from 7.1% in H1 2009 to 5.7% yr/yr. ROA fell from 0.6% to 0.47%.

The bank sector's average capital adequacy ratio rose from 12.3% in H1 2009 to 12.6%. (MTI-Econews)