Write-downs at Hungarian unit expected to push BayernLB into red for 2011
Germany’s BayernLB on Thursday said it expects to close 2011 with a net loss because of write-downs at its Hungarian unit MKB Bank.
BayernLB blamed "Hungarian government actions", namely the bank levy and a scheme allowing early repayment of foreign currency-denominated mortgages at discounted exchange rates, for the write-downs.
"The write-down on the book value of its holding in MKB Bank will have a significant impact on BayernLB’s net income under German accounting standards and thus overshadows the positive performance of its operating business with customers," the bank said.
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