September 28, 2017 / 6:41 AM / a year ago

Outlook for Hungary's banks positive as loans improve, Moody's says

BUDAPEST, Sept 28 (Reuters) - Rating agency Moody’s kept a positive outlook on Hungary’s banking system on Thursday, saying that its improving economy would improve the quality of loans at its banks and support their profitability while capital buffers remain stable.

Rising wages and house prices as well as government stimulus will spur loan growth, Moody’s said, adding that demand for large corporate loans was expected to remain modest.

Moody’s expects non-performing loans to fall to around 9 percent of total loans by the end of 2018 from 14.7 percent at the end of 2016, driven “mainly by sales and write-offs of problematic loans.”

Reporting by Krisztina Than, editing by Larry King

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