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Hungary’s FHB expects to match 2008 profits, total assets in 2009

  FHB Mortgage Bank expects 2009 consolidated profit to at least match 2008 profits, and total assets are also seen reaching at least their level at the end of 2008, CEO Daniel Gyuris told shareholders at an annual general meeting on Tuesday.

The bank also aims to keep its cost-to-income ratio under 50%, Gyuris said.

Shareholders approved a proposal to place 2008 profits of HUF 6.8 billion (about $30 million) into profit reserves, paying no dividend. The AGM also approved a capital raise by the state, announced on March 30. Shareholders also voted to scrap the 10% limit on voting rights.

FHB paid no dividend in 2008. It paid a HUF 32/share dividend in 2007. Shareholders approved FHB’s 2008 IFRS report showing consolidated after-tax profit of HUF 6.7 billion and total assets of HUF 689.5 billion.

Shareholders approved a HUF 30 billion capital raise by the state to be carried out through the issue of 46,153,999 dividend preference shares and a single share that carries veto rights for strategic decisions, as outlined in a contract signed at the end of March. The shares have a nominal value of HUF 100 apiece but will be subscribed at HUF 650 apiece.

The share issue will raise FHB’s registered capital by HUF 4.65 billion to HUF 11.22 billion and will raise its capital reserves by HUF 25.28 billion. The state’s stake in FHB will rise from 4.11% to 43.57% as a result of the capital increase. The preference shares pay a dividend of 10.49% of issue price.

Shareholders approved the conversion of shares issued earlier that carry veto rights held by the state and insurer Allianz Hungarian into ordinary shares. (MTI-Econews)