K&H Banking Group recorded a profit of HUF 10.1 billion in 2017Q1

K&H Insurance profit was HUF 846 million in 2017Q1

K&H Banking Group closed 2017Q1 with an after-tax profit of HUF 10.1 billion. This amount compares to a profit of HUF 9.3 billion in 2016Q1 (+8%). The profit increase is due to higher business volumes, increasing number of customers served, continued low level of credit costs, and lower bank and corporate income taxes.  K&H Insurance in 2017Q1 realised an after-tax profit of HUF 846 million, HUF 10 million above same period previous year.

„Despite the pressure on top line from the low interest rate environment in 2017Q1 K&H posted a solid net profit of HUF 10.1 billion, which represents an 8% increase year-on-year. This good performance is driven by higher business volumes and a growth of our customer base, continued low level of credit costs and lower bank and corporate income taxes. K&H granted HUF 57 billion in new loans in 2017Q1, representing the financing of 684 projects of our SME and corporate and 7160 individual clients. As a result of this strong commercial dynamics our market share in lending increased from 9.8% in March 2016 to 10.1 % in March 2017. – announced David Moucheron, CEO of K&H Group.

“SME and corporate loans grew by HUF 23 billion, 3% year-on-year. K&H remained one of the most active participants in the FfG Scheme with HUF 57 billion contracted volume in 2017Q1. After phasing-out of FfG program, we will continue to offer attractive, fix-interest rate loan products, which can replace FfG in the market. K&H keeps its established position as the second largest player in the market based on customer loan and deposit volumes. “ - said Attila Gombás, CFO of K&H Group.

Nik Vincke, CEO of K&H Insurance added: “Our 2017Q1 profit was up 1% year-on year to HUF 846 million. Thanks to our customer focused strategy we were again able to outperform the market by growing our non-life gross written premium with 19% year-on-year and our life insurance reserves with more than 7% year-on-year.”

K&H’s unaudited, consolidated results according to International Financial Reporting Standards (IFRS) were as follows:

HUF billion

 31 Mar, 2016

31 Mar, 2017

variance

net profit

9.3

10.1

+8.1%

operating profit before provisions and bank tax

14.6

13.0

-10.6%

lending

1255

1287

+2.5%

deposits from clients

1892

2102

+11.1%

AuM in mutual funds

980

793

-19.1%

operating income

36.4

35.5

-2.4%

operating expenses incl. FTL paid

-21.8

-22.5

+3.1%

quality of loan portfolio

 

 

 

NPL

13.1%

9.4%

-3.7%

credit costs

-0.2%

-0.1%

 

capital and liquidity

 

 

 

capital adequacy (group)

15.7%

14.7%

-1.0%

loan to deposit ratio

66.6%

61.6%

 

solvency ratio (insurance)

306%

254%

 

efficiency

 

 

 

cost/income ratio (incl. bank tax)

65.1%

67.2%

+2.1%

cost/income ratio (excl. bank tax)

59.9%

63.3%

+3.4%

ROE

16.5%

15.4%

-1.1%

contact person

K&H Communications Directorate

  • sajto@kh.hu