Erste Bank Hungary’s Profit up 13.4 Per Cent in H1

31. Juli 2006, 00:00

Austria’s Erste Bank, the parent of Erste Bank Hungary Rt announced on Monday that the Hungarian unit’s...

Austria’s Erste Bank, the parent of Erste Bank Hungary Rt announced on Monday that the Hungarian unit’s operating profit rose 13.4 per cent on the year from EUR 58 million (HUF 15.7 billion) to EUR 67.8 million (HUF 18.4 billion) in the first half of 2006.

Net interest income increased by 12.5 per cent from the year-earlier level of EUR 97.6 million (HUF 26.5 billion) to EUR 109.8 million (HUF 29.8 billion). Net commission income showed a significant increase in the second quarter.

For the full year, a considerable gain of more than 15 per cent compared to 12 months earlier remains likely. The significant rise in general administrative expenses can be attributed primarily to higher staff and marketing costs in connection with the expansion of the branch network. The operating result was up by 13.4 per cent from EUR 58.0 million (HUF15.8 billion) to EUR 65.8 million (HUF 17.9 billion) and the cost/income ratio improved from 59.9 per cent to 58.7 per cent, the bank said.

Erste Bank Hungary employed 7.5 per cent of Erste groups staff or a total of 2,729 people at the end of June.

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