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Austrian Bank Predict Record Loss As Romania Adds To Hungary Woes

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http://www.bloomberg.com/news/2014-07-03/erste-sees-2014-loss-of-up-to-eu1-6-billion-on-provisions.html

Erste Group Bank AG (EBS), the Austrian bank earning most of its income in eastern Europe, plunged as a bad-debt clean-up forced by Romanian regulators and fee refunds in Hungary will cause a record loss this year.

Erste, which owns the second-largest Hungarian and the biggest Romanian bank, will post as much as a 1.6 billion-euro ($2.2 billion) loss this year as bad-loan provisions will rise 40 percent more than forecast earlier and trigger additional writedowns, it said in a statement yesterday. The shares fell 16 percent to 19.52 euros in Vienna as of 3:37 p.m., the lowest level in almost a year.

“This is a clearly bad surprise as it comes in addition to the already ‘badly surprising’ warning issued by the group at the beginning of this year,” Natixis Securities SAS analyst Steven Gould said in a note to clients. “These announcements hurt the management’s credibility going forward.”

I hope we aren't about to see another Austrian bank fail, the last time that happened things didn't turn out too well for the world.

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Austrian banks been lending like Larry over Eastern Europe. Seen their presence everywhere inc Kosova.

Worth posting this Hungarian ad again.

Edited by Oliver Sutton

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http://www.bloomberg.com/news/2014-07-03/erste-sees-2014-loss-of-up-to-eu1-6-billion-on-provisions.html

I hope we aren't about to see another Austrian bank fail, the last time that happened things didn't turn out too well for the world.

Yeah, right "here we go again". Look at the recent success of far right parties in the European elections. All we need now is an ethnic minority to blame it all on.

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