One-Offs Reduce K&H Earnings

Banking

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First-half after-tax profit of K&H Bank, the Hungarian unit of Belgium's KBC, fell 74% year-on-year to HUF 9.7 billion on the impact of one-time factors including the windfall profit tax, compensation for clients of failed Sberbank Magyarország and a freeze on mortgage rates, CEO Guy Libot said on Monday, according to a report by state news wire MTI.

Excluding those extraordinary items - HUF 26 bln for the windfall profit tax, the HUF 8.9 bln contribution to the National Deposit Insurance Fund to cover Sberbank depositors, and the HUF 7.3 bln cost of the mortgage rate freeze - K&H's profit would have reached HUF 46.2 bln, Libot said. 

Net interest revenue rose 40% to HUF 71.1 bln and net revenue from commissions and fees climbed 15% to HUF 37.6 bln. 

The stock of loans increased 17% to HUF 2.291 trillion in the 12 months to the end of June. The stock of client deposits rose 14% to HUF 3.659 tln.

K&H added 40,000 retail clients in the first half, bringing the total to 800,000.

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