|K&H Banking Group closed the first 9 months of 2011 with an after-tax profit of HUF 0.1 billion. This amount is 99% lower than same period last year as a result of the amount of the impairment due to the FX mortgage repayment. K&H Banking Group paid HUF 12 billion as banktax in first nine months of 2011. K&H Bank reported a HUF 12 billion loss for Q3, mainly due to the HUF 25.2 billion impairment which was accounted for the expected impact of FX mortgage repayment. The after-tax profit excluding banktax and impairment for FX mortgage repayment for nine months of 2011 is HUF 30 billion which represent 8% higher growth compared to last year same period. Inspite of the sluggish market environment the operating income remained at the same level, while operating expenses decreased by 2% on a year on year basis. The share of non-performing loans increased from 9,4% to 9.7% within a quarter. K&H Insurance continues its strong growth in the third quarter, both in the life and non-life business line.|
„K&H Banking Group after tax profit excluding banktax and impairment for FX mortgage repayment for the first nine month was HUF 30 billion, which is 8% higher than last year same period. But mainly due to due to the HUF 25.2 billion impairment for the expected impact of FX mortgage repayment K&H closed the first nine months of 2011 with a net profit of HUF 0.1 billion, which is 99% lower than previous year same period. K&H Banking Group paid HUF 12 billion as banktax in the first nine months of 2011. Non-performing loans are still increasing, but this time slightly, their share grew from 9.4% to 9.7% within a quarter. We could countinously increase our market share of savings, in the market of capital protected funds the Bank is market leader with a market share of 53%.” – announced Hendrik Scheerlinck, CEO of the K&H Group.
„ Inspite of the sluggish market environment our operating income remained at the same level, while operating expenses decreased by 2% on a year on year basis as a result of strict cost control measures. The deposit portfolio increased in retail segment and sme segments by 13% each, while our corporate deposit portfolio decreased. By the end of September, our loan-to-deposit ratio reached 91.4%, still the best in the Hungarian market by the standards of the major banks.” – said Attila Gombás, CFO of the K&H Group.
K&H’s unaudited, consolidated results according to International Financial Reporting Standards (IFRS) were as follows:
|HUF billion||30 Sep, 2010||30 Sep, 2011||var (y/y)|
|profit after tax||16.0||0.1||-99.2%|
|profit after tax (excl. banktax and impairment for FX mortgage repayment)||28.1||30.2||+7.6%|
|operating profit before||60.9||61.9||+1.6%|
|provisions and bank tax|
|lending to non-bank clients||1,799||1,779||-1.1%|
|deposits from non-bank clients||1,568||1,629||+3.9%|
|AuM in mutual funds||621||610||-1,8%|
|quality of loan portfolio|
|capital and liquidity|
|capital adequacy||12.1% (Basel II standard method)||11.1% (Basel II IRB Foundation)|
|loan to deposit ratio||93.0%||91.4%|
|solvency ratio (insurance)||179%||155%|
|cost/income ratio (excl. banktax)||46.5%||45.6%|
|return on equity (reported profit)||10.1%||0.1%|
Luc Cools, CEO of K&H Insurance added: “The strong growth in the non-life business line continued in the third quarter. The total number of policies exceeded 891,000 representing 59% growth on year. Also in the life business line, we continued the growth both in regular and single premium products.”
K&H Group is one of the leading financial service providers in Hungary. It offers both banking and insurance solutions to meet the financial needs of customers, enabling them to opt for smart solutions best suited to their specific needs. The Group’s product range includes conventional retail and corporate banking products (account management, investments, savings, credits, bank guarantees, bank card services, custody management, treasury, project finance, etc.), premium banking services, investment fund management, leasing, life insurance, property and liability insurance, health and pension fund services and securities trading. With 235 retail branches nationwide, as well as through almost 420 local representatives selling insurance products the K&H Group offers hundreds of financial services.
KBC is one of the leading financial groups in Europe. It is a multi-channel bancassurance group with a geographic focus on Europe. The Group occupies significant, even leading positions in its core home markets of Belgium and Central and Eastern Europe (Czech Republic, Slovakia, Hungary and Bulgaria), catering mainly to retail customers, small and medium-sized enterprises and local midcaps.
KBC is one of the major Belgian companies and is listed on Euronext Brussels. (ticker symbol 'KBC').
As on Sep 30, 2011:
Shareholder’s equity (IFRS consolidated, non-audited): HUF 203 billion
Total assets (IFRS consolidated, non-audited): HUF 2,977 billion
After-tax profit (IFRS consolidated, non-audited): HUF 0.1 billion
As on Sep 30, 2011:
Shareholder’s equity (IFRS consolidated, non-audited): HUF 8.3 billion
Total assets (IFRS consolidated, non-audited): HUF 105.4 billion
Insurance technical profit (IFRS consolidated, non-audited): HUF 1.7 billion
After-tax profit (IFRS consolidated, non-audited): HUF 1.4 billion
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