Record Net Profit in Q1 Reported by Banks in Hungary
- 6 Jun 2024 11:14 AM
- Hungary Around the Clock
The unconsolidated net profit of Hungarian banks was up 26% year-on-year to a record Ft 499 billion in the first quarter, largely driven by foreign dividend income and the halving of the extra profit tax, according to data from the MNB.
Excluding the dividends received from OTP’s foreign subsidiaries, the bottom line of local banks rose two-fold to Ft 232 billion in the first three months.
Return on equity was 26%, or 12%, when adjusted for the impact of dividend payments.
Excluding foreign units, OTP remained Hungary’s most profitable bank, with a net profit of Ft 50.1 billion, followed by MBH with Ft 49.1 billion and Erste Ft 28.7 billion.
Lower government taxes propelled earnings higher as banks paid Ft 100 billion in windfall taxes, applicable for the entire year, in the first quarter, compared to Ft 257 billion in the first quarter of 2023.
The bank, tax, in contrast, rose slightly to Ft 97 billion from Ft 76 billion in the base period, also paid in the first three months.
Net interest income fell by 4% to Ft 587 billion but net fees rose by 9% to Ft 243 billion.
There was a 16% decline in operating costs to Ft 600 billion.
MTI Photo: Szilárd Koszticsák
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