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K&H Bank income grows even with low base rate

Telco

K&H Bank recorded net income of HUF 32.2 billion in the first three quarters of 2017, including net income of HUF 9.7 bln in Q3 alone, unaudited consolidated IFRS figures published by the bank show, according to Hungarian news agency MTI.

Q1-Q3 net income dropped 3.6% year-on-year as the sale of VISA shares raised the base. Excluding that effect, net income rose 8.1%, MTI noted.

Net interest revenue rose 3.2% to HUF 53.9 bln in Q1-Q3, while net revenue from fees and commissions rose 2.6% to HUF 40.3 bln. Higher business volumes and higher client numbers offset the effect of the low interest rate environment, the bank said in a press release, citing CFO Attila Gombás.

The stock of loans to clients rose 8.2% to HUF 1,367 bln, while client deposits rose 15% to HUF 2,199 bln in the twelve months to the end of September 2017. Operating costs including the transaction duty rose 2.4% to HUF 69.5 bln.

New loan outlays were up 79% year-on-year, the bank reported. Net mortgage lending rose 34% to HUF 79 bln in the three quarters, while new personal loan outlays were up 78% at HUF 19 bln.

The group granted HUF 178 bln in business loans, 112% more than one year earlier. The ratio of non-performing loans (NPLs) dropped 3 percentage points from a year earlier to 7.8%, while the ratio of lending losses dropped 0.1 of a percentage point to 0.3%.

K&H Biztosító, the groupʼs insurance unit, had after-tax profit of HUF 2.1 bln in January-September. Its premium revenues from non-life insurance rose 18%, and those from life policies by 11%.

Consolidated assets stood at HUF 2,926 bln at the end of September, including HUF 255 bln in shareholdersʼ equity.

K&H Bank is part of the Belgian KBC Group.

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