Erste Hungary's net loss shrinks 88% y/y in Jan-Sep on lower risk provisions.

By bne IntelliNews October 31, 2012
The Hungarian unit of Austrian Erste Bank posted a net loss of EUR 64.1mn in January to September 2012, down 87.9% from a net loss of EUR 531.7mn recorded a year earlier, the parent bank said in a statement. This significant improvement was mainly due to a higher base effect on account of risk provisions. The bank booked EUR 147.1mn in risk provisions in Jan-Sep 2012, down from EUR 701.3mn in the same period of 2011, when it allocated additional provisions related to the early repayment of foreign currency-denominated mortgages at below market rates coupled with challenging economic environment. Erstes net interest income dropped 15% y/y to EUR 257.6mn and its income from net fee and commission was also down 8.1% y/y to EUR 67.8mn in Jan-Sep 2012. Losses under other result soared 87.4% y/y to EUR 107.4mn which was again mainly due to changes in Hungarys legal framework. The NPL ratio deteriorated to 25.3% at end-September 2012, from 16.5% at end- September 2011 and 21.1% at end-2011. On the positive side, the lender managed to cut administrative spending by 20.9% y/y as the bank reduced the headcount by 11.3% y/y to a total of 2,614 employees at end-September 2012. Erste Hungary has earlier announced a number restructuring measures in response to the deteriorating revenue outlook along with lower lending activity, higher provision-requirements, higher expenses resulting from the bank levy and the early loan repayment scheme and rising risks due to the adverse external environment.
Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Assets of Hungarys investment funds up 3.2% m/m in Feb 2013.

Hungary's investment funds had aggregate assets of HUF 3.657tn (EUR 11.98bn) as of end-February 2013, up by 3.2% m/m, MTI news agency reported citing data from the association of investment funds ... more

Hungary's number of employees down 0.6% y/y in Jan 2013.

The number of employees in Hungary's public and private sectors fell for the tenth straight month in January 2013 declining by 0.6% y/y to 2.574mn, the statistics office informed. The decline ... more

Hungarys MVM clears deal for purchasing E.ONs local units.

The assembly of state-owned Hungarian Electricity Works (MVM) has approved the purchase of the local gas business of German power utility E.ON, Hungary AM reported, citing local daily Magyar ... more

Follow Us On

Most Read

  1. Iran vs Israel: Who is better equipped for war?
    4 days ago
  2. Saudi Arabia to scale back plans for Neom city
    8 days ago
  3. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    5 months ago
  4. BREAKING: Iraq, Syria and Jordan close airspace amid Iranian strike on Israel
    4 days ago
  5. PANNIER: Caspian military drills that exclude Russia and Iran have some people in Moscow asking questions
    6 days ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    19 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    23 days ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. UBN: Russia could take the Baltic states in 48 hours
    28 days ago
  5. BRICS announce a blockchain-based payment system to create a common currency
    21 days ago

Reports

Dismiss