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.



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