FHB Kereskedelmi Bank, the recently established commercial bank, started its expansion on Wednesday, with the opening of its first branch outside Budapest. The bank is targeting a nation-wide branch network in the medium-term and intends to open 22 branches by the end of 2007. FHB has also implemented new products (i.e. mortgage loans with LTV of 95%, reverse mortgage loans) in the commercial bank.
Our view: We see the news on the start of the commercial bank expansion as positive for the FHB Bank (the bank was established at the end of November 2006) but it was widely expected by the market. Therefore, we do not expect the news to have a trading impact on the stock price today.