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ELLA Bank receives new subordinated loan from majority owner

ELLA First Home Loan Bank Zrt announced on Thursday it received €1 million ten-year subordinated loan capital from its majority shareholder Mortgage Holding S.A. on August 31.

ELLA Bank said the loan will be disbursed in several installments. This is the third subordinated loan Mortgage Holding extended to ELLA Bank after a ten-year €1 million subordinated loan at the end of June and a similar-term €1.5 million at the end of March this year.
The main activity of ELLA Bank is mortgage lending to retail clients and SMEs. The bank was transformed from a savings cooperative to a commercial bank in 2004. Mortgage Holdings, owned by Emerging Europe Capital Investors (EECI), holds 90.25% of the bank's registered capital of Ft 2 billion. The EECI fund will end its run in two years, and ELLA Bank said at the end of March that Mortgage Holdings will either set up a new fund to buy the bank's shares, or sell the bank.
According to its unaudited first-half report, Ella Bank had pre-tax profits of Ft 383 million in the first half of 2006, sharply up from Ft 27 million a year earlier. Loans to clients increased 160% to Ft 66.72 billion in the twelve months to the end of June 2006, and total assets increased 165% to Ft 74.06 billion.