K&H Bank H1 profits fall on rise in risk reserves
K&H Bank Nyrt had IFRS after-tax profit of Ft 7.1 billion in the first half of 2006, 13% less than in the same period a year earlier, CEO Marko Voljc said on Friday.
He attributed the decline to a significant rise in risk reserves in the second quarter required for several big corporate loans. K&H Bank's first-half pre-tax profits fell 5% year-on-year to Ft 10.6 billion. Operating profits, before accounting risk reserves, rose 15% to Ft 20.2 billion, Voljc said. K&H Bank, a unit of Belgium’s KBC Group, had total assets of Ft 2,183 billion on June 30, 2006, 26.7% more than twelve months earlier.
Answering a question, CFO Attila Gombás said K&H did not set aside any further reserves related to an embezzlement scandal at the bank's brokerage unit in 2003. The bank earlier said it set aside Ft 1.2 billion in Q1 to cover possible losses caused by the affair.
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