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FHB elects new chairman, to pay no dividend

Hungarian mortgage bank FHB's shareholders elected a new chairman and approved the board's proposal to pay no dividend on 2007 earnings, the company said.

The annual general meeting elected Zoltan Spéder, the former chief financial officer of the country's biggest commercial bank, OTP, as FHB's chairman to replace the representative of the state privatization agency, which sold its stake last summer.

Spéder holds a 7.31% stake in FHB and is one of the biggest single shareholders in the bank.

Chief Executive Dániel Gyuris said the company plans to return to paying out 25% of its net profit in dividends next year, state news agency MTI said.

The company's net profit dropped by 30% in 2007 to Ft 5.3 billion on rising costs related to starting up its new commercial banking operations. (Reuters)