K&H first-quarter profits slip on one-off items, risk provisions
K&H Bank Rt had after-tax profit of Ft 3.9 billion in the first quarter of 2006 under International Financial Reporting Standards, Ft 400 million less than in the same period a year earlier, the bank announced on Tuesday.
K&H attributed the fall to several one-off items as well as risk provisions related to an embezzlement scandal at its brokerage.
Pre-tax profit fell Ft 100 million to Ft 5.8 billion in Q1 2006 compared to the same period a year earlier. Risk reserves for brokerage K&H Equities Rt took Ft 1.2 billion out of profits in Q1 2006. Since the scandal in 2003, the bank has set aside risk provisions of Ft 18 billion related to the case, CFO Attila Gombos said.
K&H Bank had total assets of Ft 1,989 billion at the end of March, 18.2% more than twelve months earlier.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
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.