K&H Bank books HUF 7 bln profit in Q1
K&H Bankʼs consolidated first-quarter after-tax profit was up nearly 10% at HUF 7 bln as compared to the same period of the previous year, CEO Hendrik Scheerlinck said at a press conference on Monday.
Increased revenue from corporate and SME lending, lower risk costs and stricter cost management countered the negative effect of the compensation required under borrowers relief legislation, Scheerlinck said.
K&H ʼs new loan outlays reached HUF 46 bln in Q1, giving it 9.6% market share, up from 8.7% in the base period. The bankʼs share of loans financed with cheap credit in phase II of the National Bank of Hungaryʼs Funding for Growth Scheme reached 20.2% or HUF 133 bln. Stock of client loans, excluding the impact of the borrowers relief settlement, rose 4% to HUF 1.424 trillion in the twelve months leading up to the end of March. Stock of client deposits increased almost 8% to HUF 1.349 trillion.
Scheerlinck said K&H is looking to assume 15-20% of the business of Hungarian borrowers who refinance their loans once the conversion from FX to forints is complete. About one-fifth of all borrowers are expected to refinance their loans.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.