Raiffeisen Hungary posts record profit
The Hungarian banking sector closed 2024 with its highest profits ever, with consolidated profits of HUF 2,007 billion and unconsolidated profits of HUF 1,632 billion, according to data released by the National Bank of Hungary (MNB) in early March.
This year, Raiffeisen Bank in Hungary also published its annual results, showing a consolidated
- 6.96% year-on-year decline in net interest income, due to the declining HUF yield environment,
- and a significant 16% year-on-year improvement in net fee and commission income, thanks to an increase in fee income from payment services and investment fund management.
- The increase in the group's operating costs was mainly due to higher wage costs to compensate for the high inflationary environment in 2023 and the resources spent on digital improvements to support the group's strategic objectives.
- During 2024, the bank has released a net risk cost of HUF 13.4 billion.
- The tax liability increased by HUF 6.0 billion in 2024, mainly due to higher business and corporate taxes induced by higher turnover and profit before tax.
- The cost/income ratio improved to 32.02% and the return on equity was 24.52% in 2024 at Raiffeisen.
The amount of the extra profit tax was HUF 217.216 billion, including the 50% tax reduction made possible by the law.
The group's total assets grew by 4.13% (HUF 183 billion) in 2024, but its market share decreased slightly from 6.00% at the end of 2023 to 5.86%. The outstanding portfolio growth seen in recent years continued during 2024, after the slowdown seen in 2023, resulting in an increase in both customer sources and customer assets.
Loans and advances to customers increased by 6.15% and customer deposits by 6.60%.
The loan-to-deposit ratio of the banking group remained almost unchanged (60.57%), thanks to the almost identical growth in customer assets and liabilities. This is reported to be in line with the investment environment, which is influenced by the current inflation and interest rate environment, a trend that is typical of the sector as a whole.
The group's equity increased by 4.70% in 2024, mainly due to the excellent after-tax profit. The company's capital position remains stable, with a capital adequacy ratio of 29.36%, thanks to the profitable period of recent years and the additional Tier 1 and Tier 2 capital provided by the owner.
Raiffeisen bank hungary is paying huf 114.5 billion dividend to its austrian parent,
according to the annual report.
Cover photo: Portfolio
