Hungary FHB Chairman Speder resigns, sells stake in bank (updated)

MBH Jelzalogbank Nyrt

14/10/2016 19:39

* Departure follows regulatory crackdown 
    * Two savings and loans groups buy Speder's stake 
 
 (Adds detail) 
    By Gergely Szakacs 
    BUDAPEST, Oct 14 (Reuters) - Zoltan Speder, chairman of 
Hungary's FHB Bank  FHBK.BU , resigned on Friday and sold his 14 
percent stake in the lender after a regulatory crackdown and a 
probe by Hungarian authorities. 
    Speder's departure follows a Hungarian government 
investigation earlier this year of his business interests as it 
tried to loosen the billionaire's influence over its savings 
bank sector.  urn:newsml:reuters.com:*:nL8N1921NX 
    In June the central bank, run by Gyorgy Matolcsy, a close 
ally of Prime Minister Viktor Orban, fined FHB over a 2012 bond 
issue. FHB bought back the bond, hitting its capital position 
and prompting a review for a possible downgrade by Moody's. 
 urn:newsml:reuters.com:*:nL8N19D56Q 
    "Zoltan Speder was the member and the chairman of the Board 
of Directors since 29 April 2008. He had (an) extraordinary part 
in the development of FHB Banking Group during the past years," 
FHB said in a filing with the Budapest Stock Exchange announcing 
Speder's resignation. It did not name a successor. 
    The bank did not say why Speder quit at FHB, the smaller of 
two listed local banks after OTP  OTPB.BU , central Europe's 
largest independent lender. An FHB spokesman declined comment. 
    FHB said an asset management company controlled by Speder, 
A64 Vagyonkezelo, sold 15.57 million FHB shares at 480 forints 
($1.77) each in an off-market transaction to savings and loans 
groups Fokusz Takarekszovetkezet and B3 TAKAREK Szovetkezet. 
    Speder sold the shares, representing a 14.35 percent stake 
in FHB, at a discount to Friday's closing price of 499 forints, 
according to Reuters data. 
    Fokusz and B3 said the transaction would benefit FHB by 
providing a "transparent and predictable" ownership background 
as well as "outstanding potential for growth." 
    Savings banks have been an important avenue for Orban to 
secure more than half of the bank sector in Hungarian hands, 
part of a maverick economic policy that has earned him criticism 
from the European Union. 
    On June 9, police raided FHB's office and some of Speder's 
other business interests such as the Hungarian Postal Service. 
His media company was also hit by a tax probe, and 
government-friendly media published reports sharply critical of 
Speder. 
    The reason and the timing of those moves was unclear, but 
analysts and media commentators suspect Speder, once close to 
Orban, fell out of favour with the premier. 
    Other parts of the banking industry also complained that FHB 
was enjoying tax breaks and other benefits intended for savings 
and loans banks, even though FHB is a classic commercial retail 
lender. 
    Shares in FHB, which has a market capitalisation of $119.3 
million, have fallen 8.4 percent over the past three months, 
underperforming the blue chip  .BUX  index, which gained 4.5 
percent. 
    Including FHB, the savings sector has a 9.1 percent market 
share by total assets, with about 1,500 branch offices and 1 
million customers, according to data on its web site. 
($1 = 271.8 forints) 
 
 (Reporting by Gergely Szakacs; Editing by Adrian Croft) 
 ((gergely.szakacs@tr.com; +36 1 327 4748; Reuters Messaging: 
gergely.szakacs.thomsonreuters.com@reuters.net)) 
 
Keywords: HUNGARY FHB/