Good Finance Bank’s corporate loans exceeded 700 billion forints at the end of August this year, reaching 707 billion forints – 22 percent higher than a year earlier – said Richard Szabados, head of corporate banking at a press conference in Budapest on Monday.
The stock increased more than double
The level measured at the end of 2015, by 135 percent. The amount of newly disbursed loans reached HUF 164 billion in the first eight months of this year, which is 13 percent more than in the same period last year.
Richard Szabados pointed out that in the first half of this year, the corporate branch of the Hungarian financial institution showed the most dynamic expansion within the Good Finance Group, keeping non-performing loans below 1 percent. Good Finance plans to become the largest corporate lender in Hungary within five years, said Richard Szabados.
The head of the corporate division explained that every area contributed to the growth of the corporate loan portfolio. Commercial real estate loans reached HUF 270 billion at the end of August this year, an increase of 13 percent year-on-year and 119 percent year-on-year.
In corporate loans
The HUF 178 billion portfolio grew by 27 per cent compared to August last year, and more than tripled compared to the end of 2015, by 217 per cent. The value of new placements in this area reached HUF 49 billion in the first eight months of this year, 36% higher than a year earlier.
Since the end of 2015, the volume of loans to small and medium-sized enterprises has more than doubled, by 118 per cent to HUF 229 billion, and increased by 23 per cent compared to a year ago. In the first eight months of this year, Good Finance Bank issued HUF 48 billion in new loans to small and medium-sized enterprises, 14 percent more than in the same period last year.
In the municipal sector, new placements between January and the end of August this year were 270 percent higher than a year earlier, amounting to HUF 10 billion. The stock more than doubled in one year from HUF 14 billion to HUF 30 billion by the end of August.
Richards Szabados emphasized that, despite the rapid expansion of corporate lending, the portfolio remains healthy, with the extremely low ratio of non-performing loans below 1 per cent being driven by improving the bank’s internal processes and expanding and developing its sales area.
The domestic small and medium-sized enterprise (SME)
Sector is of particular importance to Good Finance, so it is actively participating in the nhp fixed program, which has concluded contracts worth more than HUF 14 billion, which corresponds to the bank’s corporate market share of the total loan portfolio. The scheme is used primarily by companies in the agriculture and manufacturing industries, he added.
He stated that Good Finance has traditionally performed well in agriculture financing, with a dynamically growing market share of over 10 percent, and is one of the largest banking players. Agricultural loans reached HUF 107 billion at the end of August, up 38 percent year-on-year (MTI).