Belgium financial services group RHJ International(RHJIF.PK ) Thursday reported narrower loss for the full year 2013, reflecting lower SG&A expenses coupled with the absence of goodwill impairment charges, it had incurred last year.Further, it completed the acquisition of BHF-Bank for a total 340 million euros on March 26, 2014.The company expects challenging environment in the short term, citing low interest rate and tight credit spread.
The group's loss before income tax expenses reduced to 50.7 million euros from 53.7 million euros last year and net loss for the year narrowed 21 percent to 66.4 million euros from a loss of 84.4 million euros, last year .The loss narrowed as SG&A expenses reduced significantly to 156.7 million euros from last year's 190.9 million euros with an absence of goodwill impairment charges of 8.6 million euros, it had incurred in 2012.
The core operating segment loss across the financial Services and holding segments was 8 percent lower at 40.1 million euros compared with 43.4 million euros in the previous year.
The company's net interest income for the year amounted to 15.9 million euros compared with 22.5 million euros in 2012.
Acquisition of BHF was completed for a total consideration of 340 million euros with Kleinwort Benson Group or KBG holding 91 percent interest and RHJI acquiring the remaining 9 percent directly for equity-based consideration of 30.6 million euros. RHJI retains a 65.78 percent stake in KBG. After the 9 percent stake, RHJI now has an effective interest of 68.9 percent in BHF.
The company estimates to save the cost to the tune of 20 million euros post acquisition. It also expects the deal to add to its earnings in the future.
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