Erste Bank Hungary delivered robust operational growth in the first half of 2026, expanding lending across both retail and corporate segments despite reporting lower net profit after the introduction of new accounting rules for Hungary’s banking levy.
The Austrian-owned lender posted an after-tax profit of nearly HUF 56 billion, down from HUF 69 billion a year earlier. Operating revenue increased to HUF 138 billion, up from HUF 124 billion in the first six months of 2025. Net interest income climbed 11%, while fee and commission income rose 6%, supported by stronger customer activity.
Retail loan disbursements increased 65% year-on-year, while corporate lending volumes almost doubled, rising 97% compared with the first half of 2025. The bank’s total client loan portfolio, including corporate bond subscriptions, expanded 17% over the past twelve months.
Mortgage demand rebounds sharply
Housing finance proved to be one of the main growth engines during the first half, as Erste’s retail lending portfolio expanded 25% year-on-year, while new mortgage lending surged by 110%.
Demand has been supported by improving financing conditions and by Hungary’s Home Start subsidised mortgage programme for first-time buyers, which has stimulated activity across the residential property market in recent months.
Personal lending also remained robust, with the volume of newly signed personal loan contracts increasing 42%, indicating that consumer confidence is gradually recovering after several years of subdued borrowing.
Corporate investment returns
Businesses also returned to the credit market in greater numbers. Erste’s corporate loan portfolio increased to HUF 1,147 billion, representing annual growth of 7%, while new corporate loan disbursements almost doubled.
Banking taxes continue to weigh on profitability
While Erste’s operating performance strengthened considerably, accounting rules requiring the full annual windfall tax to be recognised in the first half reduced reported earnings. The issue is not unique to Erste.
Higher banking levies have weighed on profitability across Hungary’s banking sector in recent years, even as lenders continue to report solid underlying business growth. At group level, Erste has also highlighted rising bank taxes in Hungary as one of the factors affecting earnings, despite strong operating performance across CEE.
