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.
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