Erste Hungary's net loss widens 57.4% y/y to EUR 101mn in Jan-Sept 2013.

By bne IntelliNews October 31, 2013

The net loss of the Hungarian unit of Austrian Erste Bank widened by 57.4% on the year to EUR 100.9mn in January to September 2013, the parent bank said.

The deterioration was due to worsening of the operating performance of the bank, coupled with higher tax payments. In particular, Erste booked additional expenses of EUR 36.8mn resulting from the financial transaction tax introduced in 2013. In addition, the entire banking tax for the full year 2013 amounting to EUR 49mn was already booked in the first half of 2013.

The bank's net interest income dropped by 21.6% y/y to EUR 201.9mn and pushed the operating result down by 12% y/y to EUR 139mn in Jan-Sep 2013. This was due to higher refinancing costs for the FX-business, a decline in loan portfolio as well al lower market interest rates, the bank said. By contrast, income from net fee and commission was up 28.6% y/y to EUR 87.2mn.

The lender’s administrative spending edged down by 1% y/y to EUR 123.7mn in the period.

Risk provisions for loans and advances stood at EUR 160.1mn in Jan-Sept 2013, up by 8.8% y/y. The NPL ratio edged up to 27.4% at end-September from 27.3% at end-June and 25.4% at end-2012.

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