Are you sure?

CIB Bank H1 profit inches up 3% to Ft 20.4 bln

Hungary’s CIB Bank's consolidated H1 IFRS after-tax profit rose 3% to Ft 20.4 billion from the same period a year earlier.

The bank projects full-year after-tax profit of Ft 37.5 billion, CEO László Török announced on Friday.

He added that all comparison was based on adjusted figures in the base period to reflect CIB Bank's merger with Inter-Europa Bank. The merger between the two banks started in May 2007 and was registered on the last day of the year. The merger was decided on after the merger of their owners, the Italian banks Sanpaolo IMI and Banca Intesa, into Intesa Sanpaolo at the start of 2007.

CIB Bank had consolidated total assets of Ft 2,643 billion on June 30, 2008, 14% more than twelve months earlier. Though H1 figures for Hungary's entire banking system have not yet been compiled, CIB Bank's market share was probably over 10% based on total assets, Török said.

The merger did not hurt CIB Bank's efficiency, nor did it lose any clients, Török said.

CIB Bank's net revenue in H1 rose 11% to Ft 68.1 bilion from the same period a year earlier. Operating costs climbed at a slower pace, rising 10% to Ft 33.3 billion to push operating profit up 13% to Ft 34.9 billion.

The bank continued to keep its cost-to-revenue ratio under 50%, which is good in international comparison, Török said.

The bank set aside risk reserves of Ft 7 billion during the period, including Ft 1.5 billion for its retail lending segment, reflecting no deterioration in the quality of its retail loan portfolio, Török noted.

CIB Bank paid Ft 8 billion in tax in H1.

Gross stock of loans rose 23% to Ft 2,134 billion in the twelve months to June 30. Within loan stock, forint-denominated loans rose to Ft 1,000 billion from Ft 847 billion, and foreign currency-denominated loans rose to Ft 1,134 billion from Ft 894 billion. Török noted that the strengthening of the forint reduced the forint value of the foreign-currency denominated stock.

Liabilities to clients fell Ft 3% to Ft 1,352 billion. Managed assets increased, however, 3% to Ft 292 billion and included Ft 191 billion in investment funds, practically unchanged from twelve months earlier.

Török said there is still much room for growth on Hungary's banking market. The ratio of the banking sector's total assets to GDP is 100%, while it is 140% - 200% in more developed countries. (MTI – Econews)