This is how much the wealthiest Hungarians earned during the pandemic

Photo: www.facebook.com/MagyarNemzetiBank

Assets in private banking services have reached over 6500 billion HUF (18,128,140,523 EUR) thanks mainly to the market recovery that followed the coronavirus crisis in the spring. The average asset of client accounts has also reached a new record with 144 million HUF (401,625 EUR), but the sector did not get many new clients.

Portfolio conducted its six-month survey on private banking services. 15 Hungarian private banking provider participated in the survey – excluding Bank Gutman and MKB Bank, which were calculated by a 2.5 % growth.

As the survey results suggest, the richest Hungarians were not negatively affected by the coronavirus, what is more, the total assets in private banking services have reached over 6500 billion HUF (18,128,140,523 EUR). This means more than a 7 % increase in six-month, and more than 11 % increase in a year. Assumedly, the growth is a result of the positive appreciation of investments.

The assets have increased even by accounts. By December, the average asset per account was over 144 million HUF (401,625 EUR), reaching a new record number.

Based on calculations, Gutman has the highest asset average per account with 820 million HUF (2,287,097 EUR). MKB private banking could be in second place with the average of 370 million HUF (1,031,983 EUR), while Hold, Concorde, Raiffeisen and Erste are all somewhere over 200 million HUF (557,828 EUR).

In the meantime, many private banking providers are increasing their entry limits. In the first half of last year, OTP’s private banking increased from 30 million HUF (83,686 EUR) to 40 million HUF (111,581 EUR), and in its priority private banking, from 80 million HUF (223,189 EUR) to 100 million HUF (278,930 EUR). Budapest Bank went from 25 million to 35 million, Erste increased to 120 million HUF (334,783 EUR), while UniCredit, MKB, K&H, Raiffeisen and Concorde’s limits are all at 100 million HUF (278,930 EUR). Gutman continues to have the highest entry limit with 300 million HUF (836,790 EUR). Takarékbank and Generali have the lowest entry limits with 30 million HUF (83,673 EUR).

The number of new clients, on the other hand, failed to grow in the last year. By the end of December, the number of clients was 45.3 thousand, which means only a 0.1 % six-month increase, and a 0.6 % yearly increase.

The biggest challenge for the sector is definitely the economic, social, and financial changes brought by the coronavirus. As governor of the National Bank of Hungary said earlier, for Hungary’s full economic recovery from the crisis, investment growth, job creation and cheap credit will be necessary.