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Hungary's KELER AGM pays no dividend on 2010 profit

Shareholders of Hungary's central depository and clearing house KELER approved at the company's Wednesday AGM the board's proposal to pay no dividend this year, placing all of 2010 unconsolidated Hungarian accounting standards net profit of HUF 1.78 billion into reserves, KELER told MTI on Thursday evening.

KELER paid no dividend in 2009 or 2008 either.

The AGM of KELER also decided tthat the guarantee it provides to KELER Central Counterparty (KELER KSZF), its 75% unit will be HUF 12 billion from August 16, 2011 until the 90th day following the KELER AGM closing the 2011 financial year. The size of the guarantee is unchanged from the prevailing one.

Unconsolidated net profit was up 15.5% from HUF 1.55bn in 2009. Unconsolidated total assets rose to HUF 69.44 billion at the end of December 2010 from HUF 59.05 billion a year earlier.

KELER shareholders also approved the numbers contained in the company's 2010 IFRS report, showing consolidated pre-tax profit of HUF 2.29bn and consolidated net profit of HUF 1.89bn in 2010, down by 28.1% and 26.9%, respectively, from a year earlier.

Consolidated total assets rose to HUF 88.26 billion at the end of 2010 from HUF 52.8 billion at the end of 2009.

An AGM of KELER KSZF on Wednesday also approved the board's proposal to pay no dividend, and decided to place all after-tax profit of HUF 174m into reserves. After-tax (and net) profit fell from HUF 198m in 2010. The unit had total assets of HUF 21.99bn at the end of 2010.

IFRS and Hungarian accounting standards figures were the same in the case of KELER KSZF, which had no unit to consolidate.

The National Bank of Hungary (NBH) owns a 53.33% stake in KELER, while the Budapest Stock Exchange (BSE) owns the remaining 46.67% of the clearing house.

KELER owns 75% of KELER Central Counterparty, while the NBH owns 13.33% and the BSE owns 11.67% of the unit.

KELER Central Counterparty was set up in 2008 and took over bourse-related guarantee services from KELER at the beginning of 2009 at the recommendation of the European Central Bank, which said that combining clearing and guarantee activities as Keler did earlier creates unnecessary risks.