Credit institutions make profit for the first time since 2010
According to Hungarian News Agency(MTI), HUF 155,2 billion were earnings before taxes at the credit institution last year after HUF 91 and 248,8 billion losses in the previous two years, revealed by preliminary data published on the National Bank of Hungary(MNB) website.
55,8 billion HUF are the result of normal business activities, while HUF 94,4 billion are extraordinary, of which three quarters are from one big bank’s extraordinary results.
The 131 credit institutions realized HUF 325,8 billion aggregate profit, 40 credit institutions closed with a loss of HUF 170,7 billion the last year.
The earnings after taxes were HUF 67,6 billion according to preliminary data after the losses HUF 173,5 billion and HUF 288,7 billion in 2012 and 2011.
The interest results of the credit institutions decreased by HUF 12,5 billion (1,3%) to HUF 950 billion, however, the commission results increased by HUF 145,6 billion (54,2%) to HUF 414,8 billion as the transaction tax was shifted onto the clients.
The annual result was charged by HUF 302,3 billion by the net loss of value and provisioning, which increased from 2012’s HUF 200,7 billion to about HUF 300 billion, but it is still nowhere near the HUF 784 billion in 2011.
What makes the comparing difficult is that the loss of value in 2012 contains the loss of value retrievals of the currency loan final payoffs, which had only effects on the Profit and Loss Statement, not the earnings after taxes, because at the same time with the retrievals the credit institutions accounted the same amount of losses – explained the MNB.
The profitability of the credit institutions – both looking at the assets(ROA) and capital profitability (ROE) – improved, because profit was accounted instead of loss. The asset profitability increased from 2012’s -0,3% to +0,5%, the capital profitability from -3,2% to 4,6%. At shareholder credit institutions the profitability increased from -0,4% and -3,6% to +0,5% and +4,8%. The profitability of cooperative credit institutions decreased from 0,7% and 8,2% to 0,2% and 2,1%.
Translated by Oliver Tamasi
based on mti.hu