Erste Group net income in Hungary drops 33% in Q1

MNB

Net income of the Hungarian business of Austriaʼs Erste Group dropped 33% in the first quarter of 2018 compared to Q1 2017, to EUR 18.6 million, an earnings report released Friday shows, as reported by state news wire MTI.          

Net interest income was up 1.9% at EUR 47.6 mln.  Net income from commissions and fees increased 8.2% to EUR 40.4 mln, due to higher card, payments and securities fees supported by the acquisition of the former Citibank portfolio.

Operating expenses were stable at EUR 56.7 mln, while the cost-to-income ratio fell from 61.2% to 57.1%.

Erste Group booked EUR 25.6 mln for levies on banking activities in Hungary in Q1, EUR 2 mln more than a year earlier. The bank levies included EUR 13.7 mln for the Hungarian banking tax, posted upfront for the full 2018 financial year, and EUR 11.8 mln in the financial transaction tax. The group also made a EUR 8.0 mln contribution to the deposit insurance fund.      

Ersteʼs non-performing loan ratio fell slightly to 5.4%. 

Erste Bank Hungaryʼs consolidated total assets stood at EUR 7.622 billion at the end of the first quarter, up just 0.2% from twelve months earlier. 

Ersteʼs headcount in Hungary edged down 0.1% to 3,045 at the end of March.  

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