K&H Bank Q1-Q3 Profit Falls 48%

Wikimedia Commons

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.

Interview

The Mediterranean Diet’s Secret to Longevity

EU

Bóka: Competitive EU Impossible Without Competitive Member States

Manufacturing

Hydro Begins Operations at Aluminum Recycling Plant

Energy

Energy Affairs Ministry Announces Hydrocarbon Concessions Tenders

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.