Austria’s Erste bank burdened by Hungary in Q1
Austrian bank Erste Group reported Thursday that its profit rose 2.1 per cent year-on-year in the first quarter, but a negative result at its Hungary subsidiary as well as falling income from interest slowed down the increase.
Erste’s net profit improved to 260.6 million euros (387 million dollars) in the first three months of the year, compared to the same period last year.
However, net profit went down 6.5 per cent from the previous quarter.
The result of Erste’s Hungarian operations turned into the red, following the introduction of a banking tax there.
The group’s net interest income fell to 1.3 billion euros, 2.1 per cent less than in the same period last year.
Erste said it expects provisions for bad loans in Central and Eastern Europe to fall by up to 20 per cent this year, even though these risk costs would remain high in Hungary and Romania, where the economic recovery has been delayed.
via Austria’s Erste bank burdened by Hungary in Q1 – Monsters and Critics.
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