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Bank levy eats up FHB profit

After-tax profit of Hungary’s FHB Bank plunged 80.8% to HUF 277 million in Q3 from the same period a year earlier, the bank said in its consolidated IFRS report. Losses and provisions on the bank’s lending portfolio were down sharply, but an extraordinary bank levy nearly wiped out profit.

FHB booked HUF 1.7 billion for the bank levy in Q3, three-fourths of the total the bank must pay in 2010. Excluding the effect of the bank levy, after-tax profit for the period was up 37.8% at HUF 2.0 billion, the bank said.

Losses and provisions on loans an impairment was down sharply at HUF 288 million from HUF 2.32 billion in the same period a year earlier.

Cost-to-income ratio reached 61.1% in Q3 2010 from 43.7% in the same period a year earlier.

Net interest income fell 5.0% to HUF 6.32 billion. Net revenue from commissions and fees dropped 15.7% to HUF 271 million.

The bank booked a HUFF 1.0 billion loss on changes of fair value of derivatives, compared to a HUF 4.16 billion gain in Q3 2009.

Operating income was down 28.6% at HUF 5.47 billion, while operating expenses rose 61.1% to HUF 5.36 billion.

FHB’s total comprehensive income for the period was negative HUF 619m, down from positive HUF 1.87 billion in the same period a year earlier.

Lending, impairment losses pull down Q1-Q3 profit

FHB’s after-tax profit was HUF 3.07 billion for Q1-Q3, down 44.2% from the same period a year earlier as losses from lending and impairment as well as the bank levy eroded earnings.

Losses and provisions on loans and impairment came to HUF 4.18 billion during the period, 14.8% less than in Q1-Q3 2009.

Without the effect of the bank levy, FHB’s after-tax profit would have fallen 13.0% to HUF 4.78 billion, the bank said.

Earnings per share came to HUF 64, down 44% from the same period a year earlier.

Net interest income rose 12.0% to HUF 19.88 billion. Net income from commissions and fees fell 15.9% to HUF 844 million.

The bank booked a HUF 438 million loss on changes of fair value of derivatives, compared to a gain of HUF 2.16 billion in the same period a year earlier.

Operating income was up 11.2% at HUF 20.09 billion. Operating costs rose 24.3% to HUF 12.28 billion.

Net interest margin rose 19bp to 3.31%.

ROE plunged to 8.3% from 16.8%, but the drop was just 3.8 percentage points excluding the effect of the bank levy.

ROA was halved to 0.5%.

Total comprehensive income fell 72.9% to HUF 1.61 billion.

FHB had total assets of HUF 806.3 billion on September 30, 2010, up 2.5% from twelve months earlier. Net assets were up 12.9% at HUF 51.6 billion.

Stock of loans climbed 3% to HUF 339.6 billion. Refinanced mortgage loans fell 3% to HUF 257.6 billion. (MTI – Econews)