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K&H Bank profits plunge 61% in 2009

K&H Bank, the Hungarian unit of Belgium's KBC, saw its after-tax profit fall 61.4% to HUF 10 billion in 2009 as it was forced to set aside big risk reserves because of the macroeconomic situation, K&H group CEO Marko Voljc said at a press conference on Thursday.

Pre-tax profit fell 59% to HUF 17 billion.

The bank had total assets of HUF 3,064 billion on December 31, 2009, down 3.7% from twelve months earlier, according to the consolidated IFRS balance sheet. The bank's loan-to-deposit ratio was 91.1%, making it unique in Hungary, said financial director Attila Gombás. In 2008, the rate was 104.3%, he added.

The loan-to-deposit ratio was 110-115% in the time before the crisis, Voljc said.

K&H Bank's stock of corporate deposits grew 6.7% to HUF 1,647 billion in 2009, but total stock of deposits fell 10% to HUF 1,744 billion because funds of parent KBC did not place any new deposits with the group and a large amount of deposits that arrived earlier from the funds matured. (MTI-ECONEWS)