Fundamenta-Lakáskassza profit drops to HUF 5.3 bln on IT developments

Sustainability

Home savings bank Fundamenta-Lakáskasszaʼs consolidated after-tax profit fell about 18% to HUF 5.3 billion last year because of IT developments, the lender said yesterday, Hungarian news agency MTI reported.

Outlays reached HUF 101 bln. Allocations to members came to about HUF 200 bln and were matched by HUF 29 bln in state subsidies.

Hungarians who put money into home savings banks get a 30% state subsidy of up to HUF 72,000 a year. The number of new contracts was up one-fifth.

Fundamenta managed 730,000 customer contracts at the end of 2016, with the combined contractual amount almost reaching HUF 2.5 trillion. The average contractual amount rose to more than HUF 4 million, up 10% from a year earlier. 

Deputy CEO László Morafcsik said customer satisfaction is shown by the fact that the percentage of customers renewing their contracts on expiry is steadily increasing, with contract renewals of existing or earlier customers accounting for 43% last year. 

Lending stock came to HUF 283 bln at the end of last year, up 24% from a year earlier. Loan-to-deposit ratio rose to 70% from 60% a year earlier based on earlier data.

About 69% of the loans were used to buy homes, while 16% were used for renovations, 6% for home construction and 9% to refinance loans. 

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