The Land Credit and Mortgage Bank Zrt (FHB) announced on Wednesday that its new unit, life annuity provider FHB Életjáradék Zrt, was registered by the registration court on August 16.
FHB Életjáradék was set up with net assets of Ft 150 million, including registered capital of Ft 100 million and capital reserves of Ft 50 million. FHB owns 95% of the company's shares and 5% is owned by the bank's unit FHB Szolgáltató Zrt.
Under the bank's new mid-term strategy for 2006-2010 announced in February, FHB said it aimed to expand its activities to include the entire mortgage market, which comprises banking, property, mortgage and capital market activities. FHB's management announced earlier it would divide up its activities among five of its subsidiaries, including a commercial bank, to be set up with net assets of Ft 6 billion, a property appraisal and real estate management unit, a leasing company, a life annuity provider and a services company, FHB Szolgáltató, an existing unit, which will receive a capital injection of Ft 2 billion.