KBC Q1 earnings in Hungary hit by extraordinary OBA contribution

Banking

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Belgian banking and insurance company KBC booked Q1 net income of EUR 35 million at its business in Hungary, down 19% year-on-year, as its local lender, K&H Bank, paid an extraordinary contribution to the National Deposit Insurance Fund (OBA) after Russian-owned Sberbank went bust, an earnings report released on Thursday shows.

KBC said K&H was required to pay EUR 24 mln to OBA because of Sberbank, and the amount was booked in Q1.

Hungarian lenders are paying a combined one-off contribution of HUF 73.6 bln to OBA for payouts to covered Sberbank depositors, the fund announced days earlier.

K&H's net interest income rose 33% to EUR 93 mln during the period. Net revenue from commissions and fees climbed 18% to EUR 51 mln.

K&H's stock of client loans reached EUR 5.436 bln at the end of March, up 8% from 12 months earlier. The stock of deposits rose 13% to EUR 9.897 bln.

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