Are you sure?

FHB Q2 profit slips 50% on provisions, higher costs

Hungary's FHB Bank had second-quarter after-tax profit of HUF 1.29 billion, down 50.4% from the same period a year earlier as costs rose and provisions grew, the bank's consolidated IFRS report shows.

FHB's net interest income rose 5.7% to HUF 6.71 billion, but operating costs climbed 10.3% to HUF 3.61 billion and the bank booked risk provisions and impairment on loans of HUF 1.87 billion, up 17.8%.

The proportion of non-performing loans within the lending portfolio rose to 5.06% at the end of the period, up from 4.25% at the end of March and 2.77% twelve months earlier.

In the first half, FHB's after-tax profit slid 31.1% to HUF 2.79 billion from the same period a year earlier. Net interest income rose 22.1% to HUF 13.55 billion, but operating costs were up 5.5% at HUF 6.91 billion and risk provisions jumped 50.5% to HUF 3.89 billion.

FHB had total loan loss provisions of HUF 12.03 billion at the end of June, up from HUF 4.08 billion twelve months earlier and HUF 9.49 billion at the end of March.

FHB had total assets of HUF 829.5 billion on June 30, up 1.4% from twelve months earlier. Net assets rose 9.1% to HUF 49.6 billion. (MTI – Econews)