Erste Bank Hungary sees net profit fall by 27% y/y in 2009.

By bne IntelliNews March 2, 2010
Net profit of Erste Bank Hungary reached HUF 23.6bn in 2009, falling by 27% y/y, the bank informed. It attributed the deteriorating financial results to the accumulation of provisions against credit losses during the year. Risk reserves consequently increased strongly by 167% y/y to HUF 48.8bn as of end-2010. Despite the unfavourable economic environment, the bank still expanded its loan portfolio by 3% y/y. It represented a 71.4% share in the total asset volume. Loan growth was still financed by new deposits as the deposit base of the bank was up by around 20% y/y to HUF 1.1tn. CEO of Erste Bank Hungary , Edit Papp, noted that the bank had a 13% share on the retail lending market and more than 8% on the market for retail deposits. Its position was especially strong on the segment for home loans, on which its share was around 16%. Papp added that the bank would be looking to further strengthen its deposit base by offering incentives for long-term deposits. Total asset volume of the bank stood at HUF 2.9tn at the end of 2009 and rose by 10.3% y/y.

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