The Hungarian government has increased the corporate income tax rate to 24% from 16% for financial-services companies, effective from next year. The rate should remain at 16% for all other companies. The hike in the CIT is negative for Hungarian banks, but its impact on Erste Bank's consolidated financial statements should be very limited according to our projections. Due to the above, Komercni banka might now (i.e., at current market prices) be seen as more attractive relative to OTP of Hungary by some investors.
Tomáš Gatěk