Lending losses put FHB in red

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FHB Bank said late Friday it racked up a first-quarter after-tax loss of HUF 1.6 billion because of lending portfolio write-offs, exchange rate changes and higher provisioning. FHB Bank just broke even in Q1 2013. The consolidated IFRS report shows lending losses jumped to HUF 2.7 billion in Q1 from just under HUF 1 billion in the base period. FHB Bank said the proportion of non-performing loans in the portfolio rose to 20.5% by the end of March. Net interest revenue fell 24% to HUF 4.3 billion and net revenue from commissions and fees dropped 5% to HUF 855 million. Return on assets was negative 0.88% and return on equity was negative 8.5%. HB Bank noted that it booked the full amount it must on the bank levy for the whole year in the first quarter. However, even excluding the bank levy, the bank would have had an HUF 883 million loss. FHB had total assets of HUF 710.4 billion on March 31, down 9% from twelve months earlier. Net assets rose 42% to HUF 76.1 billion.

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