Bloomberg reported, citing Edit Papp, the CEO of Erste Bank Hungary, the bank plans to expand its network from 182 to 200 branches in 2007. Papp said the bank wants to increase its stake in the retail market from 10.6% at the end of 2006 to 20%, with the main drivers being mortgage lending and consumer loans. Erste Bank Hungary's stock of retail loans grew to HUF 517bn by the end of 2006 from HUF 363bn in 2005.
Our view: We expect the news to have a neutral impact on the stock price today.