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About us

The history of FHB

FHB Land Credit and Mortgage Bank Company, a specialised credit institution, was established in October of 1997 with a share capital of HUF 3 milliard by four banks (Magyar Befektetési és Fejlesztési Bank Rt., Mezobank Rt., Postabank és Takarékpénztár Rt., Pénzintézeti Központ Bank Rt.) and the Ministry of Finance. By establishing the Bank, the goal of the founders was to establish long-term financing, to create opportunities for long-term investment, and to promote the development of the real estate market. The Bank was granted a license of operation by the Hungarian Financial and Capital Market Supervisory Agency (the predecessor of HFSA) in March 1998.

In its first year of operation, the FHB managed to gain a foothold on the Hungarian banking market, developed its strategy and clientele, and secured nationwide accessibility to mortgage loans. It developed a continuously molding and refining range of products that are in line with the terms of the capital market and customer needs. FHB played an important role in the realization of the Government's housing subsidy program launched in 1999. By the end of 2001 the Bank became a significant player of the Hungarian housing loan market via its own lending and via the cooperation in household lending with commercial banks and saving cooperatives. The 2001 amendment of the Act on Mortgage Loan Credit Institutions and on Mortgage Bond provided for the refinancing of commercial banks’ mortgage loans by purchasing independent liens. As a result, FHB has signed a framework agreement for refinancing with nine commercial banks, and by the end of 2005 refinancing loans contributed almost 60% of the total mortgage loan portfolio.

The Bank’s own loans and refinanced loans are funded from the mortgage bonds issued by FHB. In the spring of 2001 the mortgage bonds of the Bank were introduced to the Budapest Stock Exchange. Because of the limitations of the domestic capital market demands and conditions the Bank registered an international mortgage bond program in Luxemburg with 1 milliard Euros. Based on the decision of the general meeting of the European Mortgage Federation brought on November 29, 2001, FHB became an associated member of the organization.

The privatization of FHB started in 2003: the share of ÁPV Rt. (State Privatization and Holding Co.) decreased to 53,2%. The Bank’s ordinary shares of Series “A” were put on the trading list of the Budapest Stock Exchange Category “A” shares. FHB share has been members of the BUX basket since April 1, 2004.

The Board of Directors of FHB accepted a new business strategy in February 2006 as part of which the FHB started the process to become a banking group in order that in addition to mortgage lending and real estate financing the Bank could provide the clients with new services and products. The Bank established new subsidiaries in 2006. FHB Commercial Bank Ltd. was established in order to expand the mortgage lending activity and to offer commercial banking products within the Bank Group. FHB Real Estate Ltd. is specialized to fulfill the internal (from within the Group) and external orders related to different functions concerning real estate issues such as consulting, real estate agency functions, valuation and expert functions. The most well-known product of FHB Real Estate Ltd. is FHB Index. The activities of FHB Service Ltd. founded earlier were adjusted to  offering infrastructural, accounting, payroll and IT services for the entire Bank Group. As part of the change, the name of FHB Land Credit and Mortgage Bank owning and managing the Banking Group was modified, since 2006 the company has been operating as FHB Mortgage Bank Public Limited Company (FHB Mortgage Bank Co. Plc., FHB Plc. for short).

In the 3rd quarter of 2007 ÁPV Zrt. formerly holding 54,11%  majority share in the Bank sold its packet of Series “A” ordinary shares of 50%+1 vote in the Hungarian and international capital market in the context of accelerated book building at 29 August, 2007. Since the transaction the ÁPV’s (from 20th of November MNV Zrt.) share in FHB Plc. has dropped to 4,11%.

The agreement between Allianz Hungaria Insurance Co. Ltd. and FHB Mortgage Bank Co. Plc. on the sale of Allianz Bank Ltd. to FHB was concluded on September 30, 2010. The long term strategic cooperation between the two Groups has also taken effect; as a result the financial solutions, banking and insurance products and services of the two Groups are available for the customers of Allianz Hungary and FHB Banking Group in an extended range of FHB branch offices. On 31 March 2011 Allianz Bank merged into FHB Bank with the result that from 1 April 2011 onwards FHB Bank, as its legal successor, also provide banking services to the ex-customers of Allianz Bank.



General information

Year of foundation: 1997
The Bank's English name: FHB Mortgage Bank Co. Plc.
The Bank's German name: FHB Hypotheken- und Bodenkreditbank AG.
Address: 1082 Budapest, Üllői út 48.
Phone number: +36 1 33 44 344; +36 1 452 9100
Fax: +36 1 329 1004
E-mail: fhb@fhb.hu
Postal address: 1908 Budapest

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