K&H Bank Q1-Q3 Profit Falls 48%

Banking

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After-tax profit of K&H Bank, the Hungarian unit of Belgium's KBC, fell 48% year-on-year to HUF 31 billion in Q1-Q3, CEO Guy Libot said on Tuesday, according to a report by state news wire MTI.

Libot said the lender and its insurance businesses booked HUF 55 bln in additional costs due to government measures, including HUF 29 bln for a windfall profit tax, close to HUF 9 bln for an extraordinary payment to the National Deposit Insurance Fund (OBA) to cover clients of failed Sberbank Magyarország, and HUF 17 bln related to a mortgage rate freeze and a repayment moratorium for farm sector borrowers.

The extension of a rate freeze to some SMEs will hit the lender's bottom line in the fourth quarter, he added.

K&H Bank had total assets of HUF 5.525 tln at the end of September. The lending stock rose 24% to HUF 2.562 tln in the 12 months to the end of September. The stock of deposits rose 14% to HUF 3.71 tln. 

Retail and corporate credit outlays reached HUF 517 bln in Q1.

Insurance business K&H Biztositó's after-tax profit fell to HUF 1.8 bln in Q1-Q3 from HUF 4.8 bln in the base period. Revenue from premiums on general insurance policies increased by 11% to HUF 44.7 bln.

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