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Bank levy, early FX repayments put FHB in red

Hungary's FHB Bank racked up a consolidated loss of HUF 3.4 billion in the fourth quarter of last year as an extraordinary bank levy and an early forex mortgage repayment scheme weighed, the bank's IFRS report for the period shows.

The loss was well under the HUF 7.9 billion estimate by analysts polled by Portfolio.hu.


FHB said it would have booked a HUF 5.4 billion profit without the bank levy and the government-initiated scheme that allowed full repayment of foreign currency-denominated mortgages at discounted exchange rates.


Net interest revenue fell 36% to HUF 4.1 billion during the period.


Lending losses came to HUF 11.9 billion, compared to just under HUF 1 billion in the base period.


The ratio of non-performing loans in the lending portfolio rose to 14.0% at the end of December from 12.5% at the end of September, the bank noted.


ROE was -24.4% in Q4. ROA was -1.6%.


For the full year, FHB booked a HUF 4.8 billion loss. Excluding the effect of the bank levy and early FX repayments, it would have finished the year with after-tax profit of HUF 8.1 billion.


FHB booked a HUF 12.9 billion loss on the early repayment scheme for the year. It wrote off 30% of the lost against payment due on the bank levy.


Net interest revenue fell 18% to HUF 21.5 billion. 


The bank had total assets of HUF 817.7 billion on December 31, 2011,down 6.4% from twelve months earlier. Gross stock of client loans rose 2.5% to HUF 420.1 billion. Stock of deposits jumped 41% to HUF 159.1 billion.


FHB's outstanding stock of mortgage bonds fell 15.5% to HUF 338.0 billion during the period. Stock of non-collateralized bonds edged up 3% to HUF 100.6 billion.