KBC: €231 mln provision to cover borrowers’ relief
Belgian KBC Group booked a €231 mln provision in Q2 for covering the effect of the recently approved borrowers' relief legislation in Hungary, an earnings report published today revealed.
KBC has revised its estimated compensation cost. Earlier in July, a few days after the passing of a law which requires banks to compensate borrowers for losses incurred on foreign-currency loans, the Belgian group had announced it would set aside a net provision of €162 mln in Q2.
KBC racked up a net loss of €139 mln on its activities in Hungary in Q2, as compared to a net income of €26 mln for the base period.
Net interest income rose 4% to €72 mln. Net income from commissions and fees climbed 18% to €40 mln.
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