Intesa Sanpaolo’s Hungarian unit closes record year in 2023

By bne IntelliNews March 27, 2024

CIB realised a record HUF64bn (€160mn) in after-tax profit, up from HUF36.1bn a year ago, which translates to a robust 21.5% ROE, the Hungarian unit of Intesa Sanpaolo said on March 26. 

Net revenue from commissions and fees rose 15% to HUF33.8bn. The lender paid HUF5.3bn in bank tax and HUF14.9bn in windfall tax last year.

CIB ranks 5-7th in the market with total assets of HUF3.3 trillion at the end of December, up 7% from 12 months earlier.

The stock of loans rose by 9% to HUF1.6 trillion and deposits by 12.3% to HUF2.4 trillion, while the quality of the loan portfolio improved further. NPLs fell to 1.9% and the ratio of loans 90 days past due stagnated at 0.6%.

CIB sees organic growth as acquisition targets remain limited in Hungary without compromising the loan portfolio, CEO Pal Simak said.

Retail customer base grew by 4% and corporate declined moderately, but not in strategic segments. Last year, the market share of new retail loans disbursement was 12.1%, for personal loans 5.6%, baby loans 6.1% and corporate loans 4.8%.

CIB claims to have one of the highest penetration rates of digital customers, with an 84.1% rate.

The bank also released its macro forecast. GDP is expected to rise by 2.5%, after contracting 0.9% last year. The net interest income of banks will likely feel the impact of lower rates, as the benchmark Bubor (Budapest Interbank Offered Rate) is set to fall below 7% from 14% in 2023. The HUF/€ average for the year is expected to rise slightly to 386 from 381 a year earlier.


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