Are you sure?

CIB Bank books H1 loss on interest revenue, bank tax

CIB Bank had losses of HUF 11.2 billion in the first half of 2011 compared to a modest after-tax profit of HUF 105 million in H1 of 2010 due primarily to HUF 6 billion in special banking-sector tax during the period and a HUF 4.76 billion yr/yr drop in net interest revenue, CIB Bank announced early on Friday.

Interest revenues fell 15% to HUF 60.6 billion in the first half of 2011, while interest expenditures dropped to an identical magnitude to HUF 29.3 billion.

Net revenues from commissions and fees declined HUF 1.2 billion from a year earlier, while expenses required by risk provisions, impairment and lending losses rose almost HUF 2 billion. Thus, CIB had losses of HUF 3.9 billion compared to profits of HUF 1.3 billion last year even excluding the effect of taxation and the special bank levy.

The bank's total assets declined HUF 528 billion to HUF 2335 billion in the 12 months to the end of June as client deposits fell HUF 300 billion, or 12%, and loan placements dropped HUF 354 billion.

The bank only expects to see modest improvement for the entire year due to the special bank levy and low demand for financing.