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Student loan provider posts small profit in 2009

State-owned non-profit student loan provider Diákhitel Központ closed last year with net profit of a symbolic HUF 3 million (€11,319), in line with its target, the company's annual report published on the BSE website shows.

Diákhitel Központ broken even in 2008.

DK had total assets of HUF 212.205 billion at the end of 2009, up 12.4% from one year earlier.

The company had net assets of HUF 2.3 billion at the end of 2009, up HUF 3 million from one year earlier.

The stock of student loans grew 12.1% last year to HUF 187.37 billion at the end of 2009.

The company drew down long-term loans worth HUF 11.15 billion in 2009 under a financing agreement with the European Investment Bank (EIB), increasing its debts to the bank to HUF 47.562 billio.

Liabilities provided by the Hungarian development bank MFB came close to HUF 70 billion at the end of 2009.

The value of the securities issued by Diákhitel Központ amounted to HUF 73.44 billion at the end of 2009 - as a result of bond issues worth HUF 28.5 billion and repayments worth HUF 19.5 billion.

DK made active use last year of its HUF 7.5 billion credit line based on an agreement with Takarékbank. Last year it signed two new standby credit-line agreements with Erste Bank and Takarékbank worth a combined HUF 7.5 billion.

Interest revenue from student loans rose 20.8% to HUF 19 billion, with interest expenditures growing 27.8% to more than HUF 13.6 billion.

Among operating expenditures, material expenses grew 41% and personnel expenditures rose 45.7%.

Loan write-offs came to HUF 55.1 million in 2009. Risk provisions for student loans amounted to HUF 14.78 billion at the end of 2009, up 24% from one year earlier. (MTI – Econews)