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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