K&H Bank achieved a net profit of HUF 50.2 billion in the first half of 2025, while it paid HUF 31 billion for government measures. K&H Insurance recorded a net profit of HUF 5.2 billion, paying HUF 3.8 billion in windfall tax.

Peter Roebben, CEO of K&H Group, commented on the bank’s results: “Despite challenging economic conditions, with the first half of the year characterized by stagnation and higher-than-expected inflation in Hungary, K&H continued to deliver outstanding business performance in the first six months of 2025. Major challenges included an uneven pace of investments by companies, global economic uncertainty and low domestic GDP growth. K&H Bank’s profit after tax decreased year-on-year due to bank taxes, government measures and our intensive IT investments. The number of our banking customers exceeded 1 million, representing a 4 percent increase year-on-year, and 80 percent of our customers are digitally active. We currently operate nearly 600 ATMs, and we will install an additional 110 by the end of 2026, in line with the 20 percent growth required by the National Bank of Hungary. K&H spends nearly HUF 2 billion per year on ATM maintenance. Our least-used ATMs handle fewer than 500 cash withdrawals per year, far below the average of 17,000. We continue to operate all our existing branches because we believe that the personal advisory services provided by our experts fulfil an important customer need. Our new branch concept focuses on digital services and community experience, so our branches will not only be places for banking, but also inspiring meeting points. Our recently opened branch on Oktogon square and our Zenit branch on Bosnyák square, which will open soon, are excellent examples of this.”

“We have won Euromoney’s Best Digital Bank in Hungary award for two consecutive years now, in recognition of our comprehensive digital development strategy and its implementation, which ensures an outstanding customer experience. All of our digital developments strive to enable our customers to manage their finances as conveniently, quickly and easily as possible. We also won Euromoney’s Best ESG Bank in Hungary award this year for the second time, which once again recognizes our sustainability efforts”, added the CEO.

Excellent business results in the first half of 2025

K&H Bank reported a profit after tax of HUF 50.2 billion in the first half of the year and accounted for HUF 31 billion from government measures. The Bank’s income grew by 6 percent. Net interest income increased by 4 percent, while total loans grew by 7 percent to HUF 3,193 billion, and deposits also increased by 7 percent, to HUF 4,038 billion. In the period in question, K&H disbursed nearly HUF 413 billion in new loans to its corporate and retail customers. Assets under management in investment funds grew by 20 percent to exceed HUF 1,872 billion by the end of the first half of the year. Operating costs rose by 19 percent due to cost pressure caused by inflation, wage costs, spending on new digital and IT solutions, and the bank tax. K&H’s portfolio of government securities grew by 73 percent year-on-year to HUF 1,653 billion by the end of the first half of 2025.

“According to the latest K&H corporate growth survey, companies are not in an easy position, as neither the international nor the domestic economic situation gives them cause for optimism at present. They have been adversely affected by rising supplier prices and a decline in investment by their domestic customers. Looking at the economic prospects of their own companies, the proportion of those expecting the situation to deteriorate has more than doubled compared to the previous quarter (26%), and the ratio of those expecting stagnation has also fallen by 20 percentage points (52%). This explains why demand for corporate loans in the banking sector remained subdued; however, K&H was able to further strengthen its market position with a 4 percent annual increase in volume. K&H continues to actively participate in government-subsidized financing schemes that support the day-to-day operations and development of businesses: under the Széchenyi Card Program, our total contracted loan volume exceeded HUF 330 billion. K&H’s project financing portfolio reached HUF 431 billion, representing a market share of more than 12 percent. At the end of last year, K&H signed contracts worth approximately HUF 73 billion under the Demján Sándor Program announced by Eximbank, thus achieving an 18 percent market share. Our leasing portfolio exceeded HUF 111 billion by the end of the first half of the year, with new placements totalling HUF 21 billion,” said K&H Group CFO Attila Gombás.

“The strong growth of the housing market continues this year: while the retail loan portfolio of the banking sector as a whole grew by 11 percent, K&H recorded a 13 percent increase year-on-year. The home loan with a fixed 3% interest rate is expected to give an unprecedented boost to mortgage lending and, through this, to the entire real estate market. Within mortgage lending, this scheme could account for the majority of disbursements, and together with the CSOK Plus product, the proportion of interest-subsidized loans could exceed 70 percent. We are preparing for the expected rush with several measures, such as pre-scoring. Thanks to the program, the volume of mortgage lending on the Hungarian market could increase by 50 percent in the last months of the year compared to a year ago. The volume of cash loan disbursements increased by 34 percent year-on-year. The volume of K&H workers’ loans reached HUF 15 billion in June, and our market share was 14 percent in the first half of 2025. As to savings, the volume of deposits placed by customers reached HUF 1569 billion, which is 11 percent higher than last year, and customer assets managed in funds exceeded HUF 1,872 billion, which clearly reflects our customers’ continued confidence, even in the current volatile market environment,” added Attila Gombás.

Nik Vincke, CEO of K&H Insurance, said: “In the first half of 2025, K&H Insurance’s profit after tax, including HUF 3.8 billion in windfall tax, reached HUF 5.2 billion. In the same period of 2024, we posted a loss of HUF 0.7 billion due to the windfall tax for the entire year. Premium income in the non-life insurance segment grew by 8 percent year-on-year to HUF 43 billion, and all business lines are expanding steadily. Performance in life insurance also continued to improve, with annual growth reaching 18 percent, driven mainly by regular premium, unit-linked pension and non-pension savings, as well as regular premium risk insurance.

Digitalization and innovation

K&H’s customer base exceeded 1 million, while the proportion of digitally active customers grew to 80 percent and the number of mobile banking users exceeded 700,000 (meaning a 12.6 percent increase year-on-year). 60 percent of new retail accounts are now opened digitally. In June, 70 percent of all cash loan applications were also made digitally. This highlights the high quality and convenience of digital channels, and in particular the market leading K&H mobile app and AI digital assistant, Kate.

In addition to the banking and insurance services available in the K&H mobile app, the K&H+ platform is also becoming increasingly popular, enabling customers to pay for parking easily and quickly, purchase public transport tickets, or take advantage of cashback services: the latter is already used by 250,000 clients (meaning an 88 percent growth year-on-year). For spending abroad, K&H offered its customers retroactive refunds at the K&H mid-exchange rate again this summer, an offer that can also be activated in the K&H+ cashback function. The bank has already refunded the difference to nearly 22,000 customers. K&H is the first and only player on the Hungarian market to offer digital SZÉP cards. 21,000 customers have already digitised their SZÉP card through mobile bank, which is almost 30 percent of eligible customers.  In July 2025, digital spending on SZÉP cards reached HUF 100 million. Innovations introduced in the K&H mobile bank so far this year include making out life insurance linked to accounts, customizing the mobile bank home page, and account opening accounts for children. Since its launch in March, more than 11,000 customers have applied for online overdrafts and more than 2,000 credit cards, and in August, 75 percent of credit card applications were made digitally.  All 600 of K&H's ATMs are NFC-enabled. In practice, this means that cash transactions can be carried out at ATMs without a physical card, using a smartphone instead. Its popularity is evidenced by the fact that half of the transactions are already conducted via NFC.

“The future of banking is artificial intelligence, digital efficiency and sustainability, according to McKinsey's latest industry study, which provides a comprehensive view of the future of financial services. According to the comprehensive report, the winners in the coming years will be those institutions that can put technological innovation, digitalisation of the customer experience and ESG engagement at the heart of their operations. At K&H we have been developing our services in this direction already for years, so the findings of the study confirm our long-term strategy. Our digital financial assistant, Kate, is a leading example of applied AI. Kate has had over 2 million conversations and now assists not only retail customers but also SME clients with personalized responses and transaction initiation capabilities. In June, Kate’s usage among active mobile bank users exceeded 20 percent for the first time, meaning that one in five of our active mobile bank users has chatted with Kate at least once. By the end of June, we had made 276 Kate functions available to retail customers and 86 to SME customers. Some new functions were added to the most frequently used functions, such as displaying card details for online purchases and changing transfer limits. Among the old ones, the most popular features continue to be the PIN code display and card limit modification. More than 90 percent of our mobile-active customers have encountered Kate at least once, while this ratio is over 70 percent for our SME customers. In the first half of 2025, the range of transactions that can be carried out from start to finish with Kate – such as the creation, modification, cancellation or even suspension of direct debit authorizations – was expanded further. Kate now provides useful assistance not only in banking matters, but also in a number of other areas: she is the first digital assistant in Hungary to enable customers to start and stop parking sessions by voice command. These developments clearly demonstrate our commitment to fast and easy banking”- said Gergely Lóska, Head of Innovation at K&H.

“Digitalization is also constantly evolving in the field of insurance services: customers can now choose electronic communication for their life insurance policies in K&H mobile bank, and they can also take out travel insurance with the help of Kate, our digital assistant. Since February 2025, it has been possible to take out mandatory motor third-party liability insurance combined with casco insurance, and since May, digital quotes for risk life insurance linked to bank accounts have also been available in the K&H mobile bank. Since its launch 23 percent of pension insurance new businesses were sold in our mobile bank” -added the Head of Innovation.

Sustainability

K&H stands out in the Hungarian banking market by having increased its green loan portfolio to HUF 153 billion, achieving a market share of more than 22 percent in both the retail and corporate green loan markets. K&H’s  green housing loans volume reached HUF 5 billion in HUF in 2025H1, representing 6 percent of all new retail mortgage. K&H HUF has disbursed HUF 24 billion of green housing loans since its launch. In addition, K&H has introduced unique customer solutions such as the energy efficiency calculator for retail customers and the agricultural greenhouse gas calculator, which help households and businesses alike to develop sustainable operations.

“Sustainability is an integral part of K&H’s business model. Winning Euromoney’s Best ESG Bank in Hungary award for the second time in 2025 confirms that we are making real progress in Hungary in areas such as green lending, support for energy efficiency and responsible investments. As a leading bank and insurance company, our goal is to work with our customers and partners to gradually achieve the transition to a sustainable economy. Investment funds promoting social and/or environmental sustainability have reached a new milestone: total assets in responsible funds now exceed HUF 1,000 billion, accounting for 58 percent of total assets under management. Already more than every second forint invested has been going into a responsible fund; we offer 31 responsible funds in total, so we are able to provide solutions for almost every customer need. The 62 percent share of responsible funds in sales is also outstanding, which is positive feedback on our investors’ commitment to a sustainable future”, said Peter Roebben, CEO of K&H Group.

K&H’s unaudited, consolidated results in accordance with IFRS (International Financial Reporting Standards):