CIB Bank, a subsidiary of Italy's Intesa Sanpaolo, is planning further expansion in 2025 after posting record results last year, CEO Pal Simak said after the release of the annual earnings report.

The Hungarian lender reported a net profit of HUF72bn (€185mn) for 2024, marking a 14% year-on-year increase, which translates to a 21.4% return on equity rate. CIB managed to halve its windfall tax payments from HUF14.6bn in 2023 to HUF8.7bn last year as it boosted its share of government bonds.

Its balance sheet grew 4% to HUF3.46 trillion.

Growth in both lending and deposits outpaced the market, making CIB the fastest-growing bank in Hungary for deposits and second in loan portfolio expansion.

Retail mortgage lending rose by 17% in line with a recovering housing market, and new personal loan disbursals surged 60%. The stock of deposits increased by 6% to HUF2.53 trillion. The bank maintained a healthy cost-to-income ratio of 42.4%, despite inflation-driven cost increases, Simak added.

CIB also saw an improvement in asset quality, with non-performing loans (90+ days overdue) dropping to 0.5%, well below the Hungarian banking sector's 1.8% average.

Fielding a question, Simak said that when excluding the impact of the transaction tax, banking fees in Hungary are not excessively high.

CIB continued expanding its digital services and introduced a new family banking package. The bank also outperformed the market in leasing, particularly in agricultural and equipment financing.

Looking ahead, CIB Bank expects Hungary's economy to grow by more than 2% in 2025, particularly if Western European demand strengthens. The bank is targeting an 8% increase in lending and a 6% rise in savings deposits this year. However, Simak cautioned that while inflation is set to decline, it may remain above the central bank’s target range.