Trading in FHB shares suspended as bank readies capital hike (updated)

MBH Jelzalogbank Nyrt

28/12/2015 10:19

(Adds more detail on shareholder meeting) 
    BUDAPEST, Dec 28 (Reuters) - Trading in shares of Hungarian 
mortgage bank FHB  FHBK.BU  has been suspended ahead of an 
expected capital increase to help the bank fund its expansion 
plans and meet new regulations.  
    The Budapest Stock Exchange said on Monday trading in the 
shares had been halted at the request of the bank and would 
remain suspended until the end of the session on Dec. 30. 
    If the bank publishes relevant information earlier, the 
exchange said FHB shares could resume trading. 
    FHB held an extraordinary shareholder meeting on Monday 
where investors approved the capital hike. 
    In the meeting's agenda posted on the bank's web site, FHB 
said it needed the money due to a recent tightening of capital 
requirements by its supervisory body, the National Bank of 
Hungary, which will take effect from January 2016.  
    The bank said its lending expansion plans would also require 
additional capital. 
    "Based on the ... risks and possibilities outlined in this 
proposal, the capital of the mortgage bank and bank group may 
need to be strengthened already in the short term," FHB said. 
    Shareholders authorised the board to raise the bank's equity 
by 67.5 percent or a maximum of 4.45 billion forints ($15.54 
million) at nominal value.  
    FHB also said that in the coming years it may need 
additional capital worth 30-42 billion forints compared with the 
end of 2015. 
    FHB posted an after-tax loss of 5.8 billion forints in the 
first nine months of 2015. 
    ($1 = 286.1500 forints) 
 
 (Reporting by Krisztina Than and Marton Dunai; Editing by Mark 
Potter) 
 ((krisztina.than@thomsonreuters.com; +36 1 327 4745; Reuters 
Messaging: krisztina.than.thomsonreuters.com@reuters.net)) 
 
Keywords: FHB HUNGARY/