See below main business and financial news from the previous week:
NEW HUF 1,000 BILL ENTERS CIRCULATION TODAY
Hungary’s new HUF 1,000 banknote enters circulation on March 1, the National Bank of Hungary said on Wednesday. Read more HERE.
BEYOND TOURISM – A HUNGARIAN HOUSE WAS OPENED IN BANGKOK
For decades, we mainly knew Thailand for its pleasant, sandy beaches. In the imagination of the world – and Hungarians – it was kept count of as the destination of dream holidays. But today, Thailand is something much more: it is a dynamically developing economic middle power driven by a quickly developing industry and world-class agriculture. So Hungarians don’t only go there on holidays anymore – they also go with the aim of doing successful business. Read more HERE.
EXPANDING BALANCE SHEET LIFTS OTP PROFITS
Fourth-quarter after-tax profit of OTP Bank, Hungary’s biggest commercial lender, jumped by 159 percent year-on-year to 68.5 billion forints (EUR 218m), lifted by an increase in lending activity and a strong performance by the bank’s foreign units, an earnings report showed. Net interest income rose by 6 percent to 140.5 billion forints and net revenue from commissions and fees increased by 20 percent to 58.1 billion forints.
RICHTER ISSUES PROFIT WARNING OVER ESMYA
Hungarian drugmaker Gedeon Richter said it would book a 42 billion forint (EUR 134m) impairment loss related to its uterine fibroid drug Esmya which has come under scrutiny by the European Medicines Agency (EMA). Richter said its 2017 consolidated financial statements would be prepared taking into account the expected negative impact on business caused by temporary measures imposed on Esmya.
HUNGARY BANKING SECTOR PROFIT JUMPS 50 PC IN 2017
After-tax profit of Hungary’s banking sector climbed 50 percent to 632.4 billion forints last year, lifted by higher revenue from commissions and fees, freed up risk provisions and the lower corporate tax rate, data released by the National Bank of Hungary showed. The sector’s net interest revenue edged down by 1 percent to 775.2 billion forints. But net revenue from commissions and fees rose by 5 percent to 512.4 billion forints.
K+H BANK AFTER-TAX PROFIT APPROACHES HUF 42 BN IN 2017
K+H Bank, the Hungarian unit of Belgium’s KBC, had after-tax profit of 41.8 billion forints (EUR 133m) last year, CEO David Moucheron said at a press conference. K+H Bank had total assets of 3,015 billion forints at the end of 2017, up 7 percent from twelve months earlier.
LINAMAR HUNGARY PLANS HUF 8.6BN INVESTMENT
Canadian-owned machinery maker Linamar Hungary will invest 8.64 billion forints (EUR 27.5m) at three bases around the country, creating 200 jobs, Minister of Foreign Affairs and Trade Péter Szijjárto announced. The government is supporting the investments, which will create 200 jobs, with a 1.55 billion forint grant.
HUNGARIAN SOLAR CELL PAVEMENT FOR EXPORT
As we previously reported, a Hungarian enterprise has started to produce solar collecting pavement blocks from recycled plastic. As of now, even the international press caught attention. Forbes.hu states that the invention made it to the list of New Europe 100, that ranks the most promising startups. Read more HERE.
MOL TO BUILD THREE SOLAR PARKS
Hungarian oil and gas company MOL will spend “several billion forints” to build three solar parks on a combined area of 37 hectares, MOL Hungary COO Sándor Fasimon announced. Construction of the parks, in Tiszaújvaros (E Hungary), Százhalombatta (C Hungary) and Füzesgyarmat (SE Hungary), will start in March and wind up by year-end.
HUNGARY PMI SLIPS TO 57.4 IN FEBRUARY
Hungary’s seasonally-adjusted Purchasing Managers Index (PMI) slipped to 57.4 points in February from 61.1 in January, the Hungarian Association of Logistics, Purchasing and Inventory Management (Halpim), which compiles the index, said. An index value above 50 shows expansion in the manufacturing sector, while a value under 50 signals contraction.
DUNA HOUSE PROFIT SLIPS 21 PC IN 2017
Listed real estate broker Duna House’s after-tax profit fell by 21 percent to 918 million forints (EUR 2.9m) last year, an earnings report showed. In a separate disclosure on guidance, Duna House put its 2018 after-tax profit at 2.7-2.9 billion forints.
BAKERY COMPANY ZALACO PLANS HUF 4BN EXPANSION
Bakery company Zalaco Sütőipari announced plans for a 4 billion forint (EUR 12.7m) expansion at its base in Zalaegerszeg (W Hungary). Hungary’s government will support the investment, which will create 150 jobs by 2020, with a 836 million forint grant.
EUROPEAN COURT FINDS FAULT WITH HUNGARIAN GAMBLING RULES
The Court of Justice of the European Union (CJEU) ruled that Hungary’s laws regulating gambling partially violate the tenet of the free movement of services in the Treaty on the Functioning of the European Union (TFEU). The court said rules that require online gambling organisers to have a domestic casino operator’s licence violate the principle as they negatively discriminate against businesses based in other EU member states.
Source: MTI/Daily News Hungary