RBI’s business in Hungary posted an after-tax loss of 100 million euros in the first half of this year, up 20.4% from 83 million euros a year ago. Loss before tax grew 19.4% to 97 million euros from 81 million euros. Meanwhile, operating income increased 10.2% to 130 million euros from 118 million, but sundry net operating result posted a 19 million euro loss after a loss of 20 million a year ago.

Total assets in Hungary amounted to 6.1 billion euros at the end of June, down 4% from 6.3 billion euros a year earlier. Commenting on the results in Hungary, RBI’s statement said that “new strains on the banking sector” were felt.

Changed legislation for debtor relief resulted in a one-off effect, with a negative impact of 67 million euros so far in the second quarter.

RBI’s Chief Risk Officer Johann Strobl added that the new Hungarian banking law could cost up to 160 million euros, at the upper end of earlier expectations.

Source www.hungarymatters.hu

Follow that link to sign-up for MTI’s twice-daily newsletter.