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.