K&H net income edges down on base effect of VISA sale

Telco

K&H Bank, owned by KBC Bank of Belgium, had first-half net income of HUF 22.5 billion, down 2.1% from the corresponding period a year earlier, state news agency MTI reported Monday.

Excluding the one-off impact of the sale of its stake in VISA in the base period, net income was up 16.2%, the lender noted.

"Our net interest income, as well as revenue from fees, were up because of an increase in business volume and client numbers, which offset the effect of the low-interest environment," CEO David Moucheron said.

Operating income edged down 0.7% to HUF 71.9 bln as operating costs, including the financial transaction duty, rose 2.2% to HUF 45.5 bln.

ROE stood at 17.1%, down an unadjusted 2.9 percentage points, but up 0.3 of a percentage point excluding the impact of the sale of the VISA stake.

K&Hʼs stock of client loans reached HUF 1,306 bln at the end of June, up 4.9% from twelve months earlier. New outlays came to HUF 152 bln during the period.

K&Hʼs non-performing loan (NPL) ratio fell from 12.5% to 8.6%.

Client deposits rose 7.4% to HUF 2,089 bln. Assets of K&Hʼs investment funds were down 9.9% at HUF 806 bln.

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