The Hungarian business of Belgian's KBC generated a €36 million after-tax profit in the third quarter, compared to a €50 million loss in the same period a year earlier as impairment improved, the parent company's report for the period, published Thursday, shows.
KBC booked a €7 million impairment at the Hungarian business in Q3, just a fraction of the €126 million booked in the base period. KBC noted that impairment charges in Q3 2011 included €92 million related to a government scheme allowing early repayment of foreign currency-denominated mortgages at discounted exchange rates. Net interest income of the Hungarian business fell to €66 million in Q3 from €95 million in the same period a year earlier. Cost-to-income ratio rose to 53% from 48%. KBC's Hungarian business includes K&H Bank, one of the country's biggest commercial banks.