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Bank levy causes €24m Q3 loss at KBC businesses in Hungary

Belgium's KBC on Wednesday reported a €24 million loss in the third quarter of 2010 at its businesses in Hungary because of an extraordinary bank levy.

K&H Group, KBC's unit in Hungary, booked the €46 million full-year after-tax impact of the levy in Q3.

KBC said its businesses in Hungary generated net interest income of €98 million in Q3, up 6.5% from the same period a year earlier. Total income climbed 16.9% to €152 million.

Operating costs jumped 76.4% to €127 million. Impairment was up 72.4% at €50 million.

The proportion of non-performing loans in the Hungarian portfolio reached 8.1% at the end of September. The total loan portfolio fell 11% to €6.66 billion in the twelve months to the end of the period because of a drop in the corporate loan book, KBC said.

Deposit stock was also down 11%.

The Hungarian banking businesses cost-to-income ratio rose to 83% in Q3 2010 from 56%. (MTI-ECONEWS)