Erste Bank Hungary concluded the year 2006 with a net profit of 21.7 billion forints or 86 million euros, which is 12.3 percent higher than the previous year, but also below the planned increase of 20 percent, as announced by the bank. Management emphasized that they managed to increase the volume of business and market share, but this did not help them compensate for the profit diminished due to lower margins and increased competition in the country.
According to unconsolidated data, net interest income rose by 24.3 percent to 240 million euros, while net fee and commission income grew at a slower pace, specifically by 5.3 percent to 66 million euros. The revenues of Erste Bank Hungary were once again supported by the growth of the lending segment, which recorded a growth of 34.2 percent, with consumer lending leading this segment, increasing by 42.4 percent, while the corporate segment also recorded a high growth of 28.4 percent.
Although the main focus in corporate business is on small and medium-sized enterprises, the bank has made a significant step towards financing infrastructure and housing projects in collaboration with local government bodies. The bank’s assets increased by 22.2 percent last year, amounting to 7 billion euros, with deposits experiencing moderate growth of 9.1 percent to 3.16 billion euros. It should be noted that corporate deposits increased by 70 percent, while household deposits grew by only 1.4 percent.
