Sberbank refused to withdraw from Hungary, portfolio.hu says based on the article of the Austrian magazine Wirtschaftsblatt.
„We continue to be present in the business environment with more difficult market conditions” – said the Vienna-based European center of Sberbank. According to the Austrian newspaper, banking sector has been under pressure for a couple of years not only because of the weak economic growth, but also the various taxes imposed by the Hungarian government. Recently, the Hungarian State bought the Hungarian Foreign Trade Bank, the loss-making subsidiary of the Bayerische Landesbank.
According to portfolio.hu, the head of Russia’s largest bank said that Sberbank Ukrainian and Hungarian subsidiaries are experiencing difficulties. Sberbank acquired Volksbank Central and Eastern European subsidiaries for EUR 505 million two years ago, including Volksbank Hungary Ltd., which is operating as Sberbank Hungary Zrt from November 1 last year. On the basis of the market capitalization, Sberbank is Europe’s third largest financial institution with $ 70 billion after HSBC (USD 170 billion) and Santander ($ 80 billion). Sberbank’s net profit was RUB 252.6 billion (USD 6.8 billion) the first 8 months ending with August this year, which remains 0.5% lower than a year earlier.
Meanwhile, the Metropolitan Court rejected the application of Sberbank against the Hungarian State in the case of the foreign currency borrowers, because the contractual terms of the bank did not meet the principles of objectivity, acutality and proportionality, portfolio.hu says.
based on the article of portfolio.hu
translated by Becsi