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CIB Group 2014 losses drop despite provisioning for refunds

Telco

CIB Group, the Hungarian unit of Italyʼs Intesa Sanpaolo banking group, had after-tax losses of HUF 104.1 bln in 2014, down from HUF 136.7 bln in 2013, audited consolidated IFRS figures of the bank, sent to MTI on Friday show.

The bank noted that losses fell considerably from the previous year despite the 70.2 bln in provisions CIB had to set aside for the refunds it must make to clients under last summerʼs legislation on borrowerʼs relief.

CIB paid HUF 11.9 bln in bank levies in 2014, just HUF 200 mln less than in 2013. Risk provisioning fell to HUF 41.5 bln, less than half of the HUF 103.1 bln a year earlier. Net interest revenue rose to HUF 40.0 bln from HUF 37.5 bln in 2013, while net revenue from fees and provisions fell to HUF 29.4 bln from HUF 31.6 bln. 

he groupʼs loan-to-deposit ratio fell 8.7 percentage points in one year to 91.3%. Capital adequacy ratio of the group reached 18.2% at the end of 2014, rising 2.7 percentage points. Total assets fell 6.3% in 12 months to HUF 1,733.6 bln at the end of last year. The bank added that new retail and SME outlays were up almost 40% from a year earlier.

CIB underlined the parent bankʼs support in the procedure whereby CIB would sustainably regain its profit-generating capacity. According to earlier reports, last year, Intesa Sanpaolo decided to raise capital at the unit by HUF 15.4 bln in July, by HUF 13.7 bln in October and by HUF 38 bln in December.

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