He attributed the decline to a significant rise in risk reserves in the second quarter required for several big corporate loans. K&H Bank’s first-half pre-tax profits fell 5% year-on-year to Ft 10.6 billion. Operating profits, before accounting risk reserves, rose 15% to Ft 20.2 billion, Voljc said. K&H Bank, a unit of Belgium’s KBC Group, had total assets of Ft 2,183 billion on June 30, 2006, 26.7% more than twelve months earlier.
Answering a question, CFO Attila Gombás said K&H did not set aside any further reserves related to an embezzlement scandal at the bank’s brokerage unit in 2003. The bank earlier said it set aside Ft 1.2 billion in Q1 to cover possible losses caused by the affair.
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
