Budapest Bank, majority owned by GE Money Bank, reported HUF7.85 billion (€31.6 million) consolidated after-tax profit in 2005, which represents 30% year-over-year decline, CEO Mark Arnold announced. The outcome was triggered by higher operating costs (up by 14%) as the bank embarked on developments mainly focused on network expansion and introduction of new products.
The credit activity, however, was rather dynamic with stock of retail loans surging by 41% to HUF202.9 billion at the end of last year. The stock of corporate loans also booked solid performance after rising by 21% y/y to HUF212.1 billion. Noteworthy some 64.2% of that portfolio consisted of SME loans (after rising by 26% y/y), which is in line with the bank’s strategy to increasingly target that segment. The net interest revenue of Budapest Bank increased by 2% y/y, which is well below the market average for last year. Arnold stressed that this year the bank targets 10-15% growth in net profit, along with continuation of the branch network expansion. Total assets of Budapest Bank stood at HUF 563.3bn at end-2005, up by 24% y/y.