Are you sure?

Bank levy puts K&H in red in Q3, forces layoffs

The bank levy caused K&H Bank a consolidated loss of HUF 7 billion and will force the bank to cut 215 staff next year, CEO Hendrik Scheerlinck said.

K&H Bank group booked the entire amount it must pay on the tax, HUF 14.9 billion, in Q3, Scheerlinck said. The group had after-tax profit of HUF 16 billion in Q1-Q3.

The recently introduced extraordinary tax on financial sector companies is expected to generate HUF 182 billion in budget revenue this year. 

The recently introduced extraordinary tax on financial sector companies is expected to generate HUF 182bn in budget revenue this year.

The bank had consolidated IFRS total assets of HUF 3,151bn on September 30, 2010, up 2.3pc from twelve months earlier.

The ratio of non-performing loans in the lending portfolio rose to 8.7% from 7.5% in Q3, but was still under the average for the sector as a whole, Scheerlinck said. The ratio was 5.5% twelve months earlier, he added.
The bank set aside HUF 14.2 billion in risk provisions on loans in Q3, bringing total provisions set aside in Q1-Q3 to HUF 31.4 billion.

Stock of client loans reached HUF 1,747 billion at the end of September, HUF 4 billion less than twelve months earlier. Client deposits fell about 6pc to HUF 1,572 billion during the period.

The bank group and insurer K&H Biztosíto will pay about HUF 17 billion for the extraordinary financial sector tax in 2010. The parent bank will pay HUF 14.2 billion, the fund manager HUF 200 million, the leasing company HUF 400 million and the insurer HUF 1.3 billion. K&H will also pay a further HUF 900m on an earlier introduced bank tax.

Answering a question, Scheerlinck said Hungary's mortgage market is not working because of the ban on foreclosures, adding that he hoped the moratorium would be lifted by the government in the spring. The moratorium involves a moral hazard as some borrowers may neglect to service their debts in light of it, he said. (MTI – Econews)