|K&H Banking Group closed the year of 2011 with an after-tax profit of HUF 1 billion. This amount is 96% lower than same period last year as a result of the impact of the FX mortgage repayment. The underlying after-tax profit for 2011 is HUF 32.5 billion which represent 16% growth compared to the same period last year. K&H Bank booked HUF 48.9 billion loss for the expected (till 28 February, 2012) and realised (till 30 January, 2012) impact of FX mortgage repayment. Inspite of the sluggish market environment the operating income increased by 2%, while operating expenses decreased by 5% on a year on year basis. The share of non-performing loans increased from 9.7% to 10.3% within a quarter, due to the impact of FX mortgage repayment. K&H Insurance continues its strong above-market growth in the fourth quarter, both in the life and non-life business line. K&H Insurance recorded a profit of HUF 1.9 billion in 2011 compared to HUF 0.8 billion a year before.|
„ The banktax, the FX mortgage final repayment scheme, the fixing of the exchange rate, as well as the last year concluded agreement between the banks sector and the government to help retail FX mortgage borrowers all pose a large burden on the sector. Despite of these factors K&H Banking Group underlying after tax profit for 2011 was HUF 32.5 billion, which is 16% higher than the same period last year. But due to the HUF 48.9 billion loss for the impact of the FX mortgage repayment K&H closed 2011 with a net profit of HUF 1.0 billion, which is 96% lower than previous year same period. About 28,000 clients, representing 30% of eligible FX mortgage loan borrowers have prepaid their mortgage loans. Non-performing loans are still increasing, but this time 0.6% of the increase is due to the FX mortgage repayment impact.” – announced Hendrik Scheerlinck, CEO of the K&H Group.
„Inspite of the sluggish market environment our operating income grew by 2%, while operating expenses decreased by 5% on a year on year basis as a result of strict cost control measures. The deposit portfolio increased in every segment – in retail by 10%, sme by 9%, corporate 13%. Our retail loan portfolio has decreased mainly due to the FX mortgage repayment, demand for new loans remains moderate. By the end of December, our loan-to-deposit ratio reached 82.0%, still the best in the Hungarian market by the standards of the major banks. We could increase our market share of investment funds again, in the market of capital protected funds the Bank is market leader with a market share of 52%.” – 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||31 Dec, 2010||31 Dec, 2011||var (y/y)|
|profit after tax||27.2||1.0||-96.2%|
|underlying profit after tax (excl. FX mortgage repayment, banktax, ALM asymmetric result, litigations)||28.0||32.5||+16.0%|
|operating profit before provisions and bank tax||79.5||86.5||+8.7%|
|lending to non-bank clients||1,836||1,708||-7.0%|
|deposits from non-bank clients||1,591||1,724||+8.4%|
|AuM in mutual funds||629||606||-3.7%|
|quality of loan portfolio|
|capital and liquidity|
|capital adequacy||8.4% (Basel II standard method)||11.4% (Basel II IRB Foundation)|
|loan to deposit ratio||93.7%||82.0%|
|solvency ratio (insurance)||143%||156%|
|cost/income ratio (excl. banktax)||47.4%||44.0%|
|return on equity (reported profit)||12.8%||0.5%|
Luc Cools, CEO of K&H Insurance said: “K&H Insurance recorded a profit of HUF 1.9 billion in 2011 compared to HUF 0.8 billion a year before. The strong above-market growth in the non-life business line continued in the fourth quarter. The total number of mtpl policies grew by 74%, casco by 51%. The results of the 2012 mtpl campaign confirm our position as 2nd largest mtpl insurer in Hungary. In the life business line, we continued the growth both in regular and single premium products. A new asset fund was launched – Hozamkettős – which attracted a record-high invested amount of almost HUF 7 billion. During the entire year, more than HUF 15 billion was raised via single-premium life insurance subscriptions.”
“We are proud to announce that our performance is recognised by the international financial community as well. The Banker Magazine selected K&H as the best bank in Hungary in 2011.” – added Hendrik Scheerlinck.
“In December 2011 K&H Bank started its SZÉP card program, and in addition to pursuing ambitious business goals, we are also mindful of our corporate social responsibility in 2011. The construction of the new K&H head office buildings has been completed, the complex was formally opened and the colleagues have started to move into the buildings in late of 2011. We used modern, cutting edge solutions in the design and the construction of the buildings, enforcing environmentally conscious principles to the full and creating a modern, dynamic and inspiring work environment and healthy working conditions to all 2,350 employees of K&H in the process, and at the same time further increases the attractiveness of K&H as a workplace for all our existing and future employees.
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 236 retail branches nationwide, as well as through almost 390 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 Dec 31, 2011:
Shareholder’s equity (IFRS consolidated, non-audited): HUF 194 billion
Total assets (IFRS consolidated, non-audited): HUF 2,874 billion
After-tax profit (IFRS consolidated, non-audited): HUF 1.0 billion
As on Dec 31, 2011:
Shareholder’s equity (IFRS consolidated, non-audited): HUF 6.8 billion
Total assets (IFRS consolidated, non-audited): HUF 103.7 billion
Insurance technical profit (IFRS consolidated, non-audited): HUF 2.2 billion
After-tax profit (IFRS consolidated, non-audited): HUF 1.9 billion
Tel.: 328 9181
Fax: 328 9220