Are you sure?

Takarékbank: Savings coop integration achieved goals

The integration of Hungaryʼs savings cooperatives and the bodies overseeing these have achieved all goals set in the past three years, Takarékbank, the “central bank” for the coops, said in a statement yesterday, according to Hungarian news agency MTI.

Takarékbank was responding to an open letter published by the head of the National Association of Savings Cooperatives (OTSZ) and said it would take legal measures to defend its good reputation. 

In the letter, Sándor Demján said the integration had not achieved its goal and that the entire sector had become loss-making.

Takarékbank said the sector has strengthened and its organization made more secure in the past few years. Total assets of the integration have risen from HUF 1.8 trillion in 2014 to around HUF 2.4 tln, making it one of the biggest and safest players on the domestic banking market, it added.

Takarékbank said the integrationʼs pre-tax profit had exceeded HUF 3 billion in 2015 and it dismissed Demjánʼs claim that it had incurred a HUF 2 bln loss last year or that it had generated a profit of HUF 10 bln in any of the previous years.

Takarékbank also denied that its profits had grown by a factor of 16. Takarékbank had after-tax profit of HUF 2 bln in 2014 and HUF 3.2 bln in 2015, it said, adding that FHBʼs earnings had no impact on the sectorʼs results last year.

“The sector has been successfully cleared of abuses during the years under the reign of the OTSZ, of decades of fraudulent failures, and of savings cooperatives that managed their clientsʼ money irresponsibly and in violation of the rules,” Takarékbank said.