Erste Bank Hungary posts €121mn net profit in H1

By bne IntelliNews August 14, 2023

First-half after-tax profit of Austrian-owned Erste Bank Hungary reached HUF46.7bn (€121mn), climbing from HUF4.4bn in the base period, chairman-CEO Radovan Jelasity said last week. Jelasity attributed part of the increase to one-offs, such as the impact of a contribution to the National Deposit Insurance Fund (OBA) to cover the former clients of failed Russian-owned Sberbank Magyarorszag in the base period and a rebate related to that contribution in the first half.

At the group-level press conference two weeks ago, Erste officials said the lender's Hungarian unit paid a total of €101mn levies in the first half, of which the windfall tax accounted for 48%, or €47.9mn. The "regular" bank tax came to €16.5mn and the transaction tax amounted to €35.6mn.

Erste Bank Hungary's operating income climbed to HUF93.6n in H1 from HUF44bn in the base period. The stock of client loans, including bond subscriptions, stood at HUF2.3 trillion, up 10% y/y

Non-performing loan ratio dropped to 2.8% from 3.3%.

Retail lending stock edged up 2% but outlays fell 34% in H1 from the same period a year earlier. Outlays to small businesses rose 20% on the back of state-subsidised credit schemes. The stock of client deposits fell 6% to HUF3.25 trillion.

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