VIENNA Aug 12 Austrian lenders Erste Group
and Raiffeisen Bank International (RBI)
maintained their guidance on Tuesday after Hungary's OTP bank
issued a profit warning on the grounds that mandatory refunds to
borrowers could be higher than expected.
"RBI confirms the guidance previously communicated of an
expected one-off charge of between 120 million and 160 million
euros ($160-213 million) for 2014 resulting from legislation
relating to foreign currency loans and unilateral rate changes
in Hungary," RBI said in response to an enquiry.
"At this point in time, it is anticipated that the charge
will come in towards the upper end of the range."
"Erste Bank guidance remains unchanged," that lender
said when asked about OTP's comments.
UniCredit Bank Austria said it had nothing to add to its
comments last week on Hungary.
"UniCredit Bank Hungary is less affected than local
competitors by Orban government measures due to a smaller retail
FX loan portfolio (around 460 million euros)."
"Nevertheless, our subsidiary bank built up roughly 30
million euros in provisions (and it is expected to close the
year with a profit)," the bank said in an email.
Bank Austria said all Hungarian banks were awaiting guidance
from the central bank on how to implement the rebates, guidance
that OTP had cited in its comments.
(1 US dollar = 0.7495 euro)
(Reporting by Georgina Prodhan)