Hungarian banks’ combined after-tax profit in the first three quarters of 2016 almost tripled year-on-year to HUF 416.2 billion from HUF 141.6 billion on a big drop in risk costs, data from the National Bank of Hungary shows. Trends in the first three quarters were similar to ones in the first half of the year. Net interest income rose 5.8pc to HUF 622.4 billion by the end of September 2016 as interest revenue fell 12pc from the end of September 2015, but interest expenditures dropped at an even faster rate, by 34pc. Non-interest income was up 213pc at HUF 255.97 billion on lower commissions revenue, higher dividends and a 260pc jump in income from financial and investment services. The National Bank said that of the 120 credit institutions over which it has regulatory authority, 76 were profitable and 44 were loss-making at the pre-tax level. Combined pre-tax profit of the banks in the black came to HUF 457.2 billion, while those in the red had losses of HUF 13.7 billion.
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