CIB parent committed to Hungarian unit
CIB Group, the Hungarian unit of Italy's Intesa Sanpaolo banking group, sustained after-tax losses of HUF 33.8 bln in the first half of 2014, down from HUF 55.7 bln one year earlier, unaudited consolidated IFRS figures published on the website of the Budapest Stock Exchange on Friday revealed.
CIB said in a statement that H1 losses were pushed up by the bank's need to set aside HUF 20 bln for eventual refunds that the bank will have to pay to retail FX borrowers due to the application of bid/offer spreads that a recent law on borrowers' relief annulled.
Intesa SanPaolo CEO Carlo Messina said he could not say whether Hungarian measures aimed at protecting borrowers could result in further charges, but he maintained that Intesa considered its operations in the country strategic, and and added that the bank wants to stay in Hungary, international news agency Reuters reported.
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