Earnings Fall 12% in Hungarian Banking Sector, Down to 'Only' HUF 562 Billion
- 6 Dec 2022 11:00 AM
- Hungary Matters
Combined after-tax profit of Hungarian banks fell by an annual 12.4% to 562 billion forints in Q1-Q3 as write-downs and provisions weighed, the National Bank of Hungary (NBH) said.
The sector’s net interest revenue climbed 45.2% to 1,739 billion forints and net revenue from commissions and fees increased 22.7% to 834 billion. Write-downs and provisions came to 379 billion, up 298.7% from the base period.
The NBH acknowledged the impact of the consequences of the war in Ukraine on the figure and said a single, large-scale banking group with “significant foreign exposure” accounted for about two-thirds of net write-downs and provisions.
Operating costs increased by 32.4% to 1,618 billion forints, boosted by a windfall profit tax.
Total assets of the sector stood at 82,710 billion at the end of September, up 23.8% from twelve months earlier.
Lending stock rose by 25.1% to 52,371 billion forints. Stock of deposits increased by 22.2% to 66,218 billion.
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