Erste Bank Hungary’s profit after tax up by a quarter in Q1-Q3

Erste Bank Hungary also made a major announcement on the financing of residential property development:

After-tax profit of Austrian-owned Erste Bank Hungary reached HUF 113bn (EUR 280m) in Q1-Q3, climbing from HUF 90bn (EUR 220m) in the base period, chairman-CEO Radovan Jelasity said at a press conference on Monday.

Operating revenue rose to HUF 183bn from HUF 150bn. Revenue from commissions and fees climbed 22pc.

Stock of client loans, including corporate bonds, edged up 2.2pc in the twelve months to the end of September. The lender’s NPL ratio fell to 2.3pc from 2.8pc.

Outlays in Q1-Q3 rose 25pc from the base period, Erste said.

Retail lending stock increased 11pc, while outlays were up 60pc. New mortgage volume more than doubled and outlays of personal loans increased 40pc. Outlays to SMEs slipped 4pc.

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Stock of retail deposits and managed investments reached HUF 6,163bn at the end of September, up 20pc from twelve months earlier. The share of investments reached a record 71pc.

Corporate lending stock, including bond subscriptions, fell 7pc to HUF 1,102bn in the twelve months to end-September.

At the press conference, it was also announced that after a decade’s hiatus, Erste is again financing residential real estate development: the bank has signed a loan agreement worth more than HUF 12 billion with LIVING to finance the construction of the 257-apartment Rome Park.

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