2011年10月10日星期一

UPDATE 1-Erste to take Romania, Hungary hit, sees FY loss

AppId is over the quota
AppId is over the quota

* Sees 2010 net loss of 700-800 mln euros

* To delay repayment of state capital, skip dividend

* Shares fall more than 10 pct

VIENNA, Oct 10 (Reuters) - Erste Group Bank said on Monday it expects to report a 700-800 million euro 2011 net loss after writing down goodwill in Romania and Hungary and scaling back euro zone exposure.

Emerging Europe's second-biggest lender said it would delay repayment of state capital to Austria and omit a 2011 dividend.

Erste said Hungarian legislation that lets customers repay foreign-currency loans at below market rates meant that it would suffer a 500 million euro ($675 million) loss at its unit there, which will now get about 600 million euros of new equity.

In Romania, it said a slower-than-expected economic recovery meant that it would have a 700 million euro pretax writedown of goodwill.

Erste said it had cuts its sovereign exposure to Greece, Portugal, Spain, Ireland and Italy to 0.6 billion euros as of the end of September and marked 95 percent of its exposure to market.

It said its core tier 1 ratio would remain unchanged at around 9.2 percent as operating profit helps offset the one-off charges.

It shares fell more than 10 percent by 0718 GMT.


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