Budapest Bank profit falls 6% in 2011
Budapest Bank, a unit of GE Money Bank, had after-tax profit of HUF 9.6 billion in 2011, down 6% from 2010, chairman-CEO György Zolnai said at a press conference on Wednesday.
The bank had total assets of HUF 914.1 billion on December 31, 2011, up 3% from twelve months earlier, according to consolidated Hungarian Accounting Standards.
Zolnai said a government-initiated scheme that allowed early repayment of foreign currency-denominated mortgages at discounted exchange rates caused the bank a net loss of HUF 11.1 billion. He added that 27% of eligible clients had participated in the scheme.
Budapest Bank saw growth in key strategic areas of corporate lending, leasing, mortgage lending and credit card services, Zolnai said.
Risk reserves fell 8% to HUF 31.8 billion because of an improvement in the quality of the lending portfolio.
Operating costs edged up 3% to HUF 37 billion.
Liabilities to client rose 2% to HUF 739 billion and stock of receivables from clients inched up 1% to HUF 646 billion.
Retail lending stock came to HUF 485 billion. Within the stock, mortgage loans rose 1% to HUF 226 billion.
The bank signed new mortgage loans of HUF 10 billion in 2011, three times the amount in the previous year.
Stock of car loans was little changed at HUF 148 billion.
The bank's stock of SME loans rose 12% to HUF 243 billion. New leases signed during the year almost tripled to HUF 14.1 billion.
SMEs account for more than 80% of the bank's corporate lending portfolio, and 90% of these are Hungarian owned.
ADVERTISEMENT
MNB Decides on Technical Changes to Mandatory Reserve System
Parl't Approves Amendments to Legislation on Judiciary
Magnus Aircraft Signs CNY 65 mln Order
Over 10,000 Students Join 'Smashed' Program to Curb Underage...
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.
