Erst Group takes $1.4 billion loss

AP News
Posted: Oct 28, 2011 3:13 AM
Erst Group takes $1.4 billion loss

Erste Group Bank AG says it will make a net loss of euro973 million ($1.4 billion)for 2011. It blames the government debt crisis and mortgage troubles in Hungary.

The amount exceeds loss estimates of euro700 million to 800 million announced by the bank earlier this month. It said Friday the write-offs will erase what would have been an euro850 million to euro900 million profit, but would help secure the bank's finances for the future.

Erste Group says it is 9 percent _ or euro59 million _ short of the liquidity threshold set by the European Banking Authority but expects that it will be able to cover most of the shortfall by June.