Erste Bank Hungary's non-performing loans reached 9.03% of total loans at the end of 2016, down from 18.5% when compared to the previous year. Historically, the NPL ratio hit an all time high of 26.3% in 2014 and an all time low of 9.03% in 2016.
Provision coverage amounted to 77.0% at the end of 2016, up from 59.2% compared to a year earlier.
The bank created loan loss provisions worth of 1.21% of average loans in 2016. That's compared to 3.22% of loans the bank put aside to its cost on average in the last five years.
When compared to bank's main peers, OTP Group operated at the end of 2016 with NPL ratio of 14.7% and provision coverage of 96.8%, K&H Bank with 7.34% and 50.1% respectively and MKB Bank had 12.0% of bad loans covered with 76.9% by provisions at the end of 2016.