KBC Q1 earnings in Hungary hit by extraordinary OBA contribution
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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