The difference between the price FHB paid for Allianz Bank and Allianz Bank’s book value added about HUF 8.0 billion to FHB’s “other revenue” line. In Q4 2009, FHB booked a loss of HUF 906 million on the line.
FHB agreed to buy Allianz Bank from insurer Allianz Hungary last July. FHB acquired Allianz Bank for 1,829,864 FHB shares – worth about HUF 2.2 billion at market value – and HUF 1.1 billion in cash. When the parties announced the deal in July, they put the value of the transaction at HUF 3.8 billion.
Fourth-quarter earnings per share came to HUF 175.
FHB’s net interest revenue fell 30.7% to HUF 6.75 billion. Net revenue from commissions and fees rose 85.8% to HUF 809m.
Gross financial profit climbed 43.9% to HUF 12.74 billion.
FHB’s lending losses improved to HUF 832m from HUF 2.82 billion.
Excluding the effect of an extraordinary bank levy introduced in 2010, FHB said its after-tax profit would have risen to HUF 9.0 billion.
FHB’s after-tax profit for the full year climbed 60.3% to HUF 11.3 billion, also lifted by the book value of Allianz Bank.
Net interest revenue for the full year fell 3.1% to HUF 26.63 billion. Net revenue from commissions and fees rose 14.9% to HUF 1.65 billion.
Gross financial profit was up 4.3% at HUF 32.83 billion.
Lending losses narrowed to HUF 5.0 billion in 2010 from HUF 7.72 billion in 2009.
ROA rose to 1.4% from 0.9%. ROE climbed to 21.7% from 15.5%.
Without the effect of the bank levy, after-tax profit would have risen 95.5% to HUF 13.78 billion, FHB said.
FHB had total assets of HUF 873.2 billion on December 31, 2010, up 9.0% from twelve months earlier. Lending stock was up 8.4% at HUF 646.9 billion.
The book value of FHB mortgage bonds outstanding fell 8.7% to HUF 400.1 billion.
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