Erste Bank Hungary Reports High profit in H1 2025

Erste Bank Hungary Plc. closed the first half of the year with operating income of HUF 187.5 billion and after-tax profit of HUF 69.2 billion, Chairman and CEO Radován Jelasity said at the company's press conference on Wednesday.

Year-on-year, operating income increased by 6%, while after-tax profit decreased by 7%. Operating profit exceeded HUF 123.5 billion, which is 3% higher than in the same period last year. The result was significantly influenced by the increase in operating costs, which can be explained by wage increases, staff increases and higher administrative expenses.

At the same time, fee and commission income was 23% higher, reaching HUF 68.6 billion, thanks to an increase in transactions and a rise in transaction fees. Interest income increased by 2 percent, with the decline in interest rates offset by the increase in deposits, bringing the total to HUF 98.8 billion, the company's president and CEO added.

Retail customer assets managed by Erste grew by 11% to HUF 6,911 billion, with investments accounting for 71% of savings, increasing by 9% over the year. The loan and bond portfolio grew from HUF 2,428 billion to HUF 2,565 billion, while new retail loans increased from HUF 139 billion to HUF 198 billion. The amount of new corporate loans decreased from HUF 98 billion to HUF 96 billion, but this is a smaller decline than six months ago.

The retail loan portfolio grew by 13% to HUF 1,444 billion. The amount of new mortgage loans increased from HUF 67 billion to HUF 90 billion, personal loans from HUF 45 billion to HUF 69 billion, while subsidized loans from HUF 19 billion to HUF 31 billion, which is divided almost equally between baby loans and worker loans, László Harmati, Deputy CEO for Retail Banking said.

The Deputy CEO responsible for corporate and financial markets, Róbert Cselovszki announced that the corporate bond and loan portfolio fell by 4 percent to HUF 1,075 billion, but within new disbursements, those for small and medium-sized enterprises increased from HUF 28 billion to HUF 64 billion.