ADVERTISEMENT

Bayern LB turns H1 profit despite big MKB losses

Conferences

Germany-based Bayerische Landesbank (Bayern LB) released figures for performance of its Hungary-based MKB Bank in the first half of 2013 which showed the institution losing €108 million, due to “the ongoing difficult economic and political environment” in the country...

Bank levies and transaction duties accounted for €72 million in expenses and “Hungary’s spluttering economic recovery and … subdued climate for consumption and capital expenditure” also hurt.

Despite the poor results in Hungary, however, Bayern LB was able to report an overall 370% increase in profit before taxes year-on-year from €120 million to €563 million, thanks in large part to the €351 million sale of its GBW real estate business in April.

As part of a €5 billion bailout deal with the German government and the European Commission, Bayern LB must sell its stake in MKB Bank by the end of 2015.

“Developments in Hungary are of key importance for BayernLB,” read a statement from the bank. “The country’s government is toying with the idea of fresh political intervention on foreign currency loans which could severely test the business of banks operating there.”

ADVERTISEMENT

Consumer, business confidence reach 2-year high - GKI Analysis

Consumer, business confidence reach 2-year high - GKI

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

Budapest airport shuttle bus service expanded City

Budapest airport shuttle bus service expanded

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 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.