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FHB turns profitable in first quarter

FHB Mortgage Bank, Hungaryʼs largest mortgage re-financer, booked a HUF 279 million after-tax profit in the first quarter, compared to a HUF 1.27 billion loss in the base period, an earnings report published late Thursday shows, according to state news wire MTI.

Net interest income was down 0.8% at HUF 3.44 bln. Net revenue from commissions and fees was up 14.3% at HUF 1.94 bln.

Provisions for impairment fell to HUF 598 mln from HUF 1.58 bln in the base period.

Profit before tax in Q1 2017 was HUF 336 mln, compared to a HUF 824 mln loss a year earlier.

FHB had total assets of HUF 575.1 bln at the end of the first quarter of the year, down 22% from twelve months earlier. Shareholders’ equity fell 45.9% to HUF 58.13 bln.

The stock of FHB consumer loans rose 3.3% to HUF 320.5 bln. Refinanced mortgage loans were down 44% at HUF 43.7 bln.

Due to increasing new loan disbursement, the quality of the loan portfolio improved. The rate of non-performing loans (NPLs) dropped to 9.8% by the end of March 2017, a 3.7 percentage-point improvement from the 13.5% level on March 31, 2016.

Client deposits fell 12.7% to HUF 289.54 bln.

Total provisions were down 4% at HUF 22.59 bln.