A quarter of the increase results in the first half of the Erste Bank

Erste Bank Hungary Zrt. the first semester 28,2 billion operating result, which is nearly 25 percent increase compared to the previous year, for the first six months 19,3 percent 61,4 billion increase to the bank told MTI.

According to the announcement, the schedule, better results, inter alia, the retail credit disbursement, increased the credit card and the premium wealth management segment for further expansion, as well as the corporate division of the strengthening is due.

The financial institutions in the second half double-digit loan portfolio growth in the retail and corporate business alike.

Jelasity Radován president and ceo according to the announcement, stated: “the non-performing loans ratio of single-digit for have been pushed down, successfully been carried out in the last 10 years, the largest banking acquisition and now all of our energy to take the credit we want to pay”.

The retail credit disbursement growth, the number of customers increased, primarily in the credit card business and premium property management, greatly supported the Citibank retail business of integration.

The operating costs in the first half of the bank’s acquisition by 15,1 percent 33,2 billion rising, at the same time, the bank’s overall cost reduction program started which has full effect in 2018.

Stress that is further purified Erste’s loan portfolio: non-performing loans ratio was 7.2 percent in 2016, the first half of end of 14,5 percent compared to that in the corporate and the retail loan portfolio cleaning both played a role.

In the corporate sector, to 7.8 billion was operating profit, which compared to last year’s 9 percent increase. This, inter alia, the company’s performing loan portfolio, a significant increase in non-performing loan portfolio reduced, the cost-cutting measures and the profitability improvements played a role.

Erste Group Bank AG at the beginning of August stated that last year approximately 26 percent less 624,7 million euros was Erste Group’s first half year profit.

Last year, the first six months of the biggest half-year profits of Erste Group Bank AG, net profit 841,7 million euro, which is partly the Visa-interest sales of 120 million euros based.

This year’s January-June period, half the annual operating result of 3.5 percent, 1,289 billion euros. The non-performing loans ratio of the former is 5.8 percent to 4.7 percent.

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