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.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.