CIB Bank, a Hungarian unit of Intesa Sanpaolo, posted a 37% increase in profits for 2006 to Ft 25.3 billion (€95.6 million), with strong growth in all major operating areas, but especially in the household loan and project finance sectors, said CEO László Török. “CIB grew well above the market in Hungary, which grew 18%,” said Török. “Growth was aided by all our important three business areas: the household sector, the business sector, and leasing.”
CIB net assets grew 27% to Ft 1,874 billion (€76 billion) over the period, largely thanks to project finance, up 32% to Ft 227.8 billion (€920 million), and household loans, up 45% to Ft 213.9 billion (€870 million), the bank said. Loans to businesses grew at a slower rate, as loan stock in this sector grew 13% to Ft 844.6 billion. CIB’s leasing business saw financing in this sector up 17% to 179.4 billion. CIB deposits grew 42% to Ft 1,019 billion, with business deposits growing 43% to Ft 590.3 billion and household deposits up 35% to Ft 409.2 billion.
CIB is due to be merged with Intesa’s other Hungarian unit IEB by the end of the year to create the second largest bank in Hungary. “We want the new institution to grow at least as fast as the market but preferably faster over the next three years,” said György Surányi, Intesa’s regional director. The two banks give Intesa a market share in Hungary of over 10%. (abcmoney.co.uk)
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