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K&H Group's H1 post-tax profit falls 46% as result of banking tax

Hungary's K&H Bank Group posted consolidated post-tax profit of HUF 12.5 billion in the first half of 2011, down 46% yr/yr as a result of the government's extraordinary financial-sector tax and a rise in lending costs, K&H Bank Group CEO Hendrik Scheerlinck announced on Thursday, referring to data in the group's H1 IFRS report.

Scheerlinck noted that the group paid HUF 8 billion in extraordinary banking-sector tax during the period, adding that the percentage of non-performing loans rose to 9.4% from 9.3% of all loans in the second quarter. Scheerlinck said that the group's lending costs were high during the period, though conformed to expectations.

K&H Insurance CEO Luc Cools said that the company had registered growth in both its life-insurance and non-life-insurance operations in the first half of 2011, noting that the unit now commands a 5.7% share of Hungary's total insurance market. Cools said that K&H Insurance has gained a second-highest 14.1% share of Hungary's mandatory vehicle-liability insurance market.