K&H Banking Group recorded a profit of HUF 22.5 billion in 1H2017
K&H Insurance profit was HUF 1.37 billion in 1H2017
K&H Bank net profit reached HUF 22.5 billion in 1H2017, representing an underlying 16% increase year-on-year if excluding the one-off gain on VISA shares in 2016. The banking group realised a record underlying net profit of HUF 12.4 billion in 2Q2017. K&H Insurance in 1H2017 realised an after-tax profit of HUF 1.4 billion, representing a 19% decrease y-o-y primarily due to higher insurance tax and lower interest rate environment but it could outperform the market by growing its non-life gross written premium with 20% year-on-year.
„Our net profit reached HUF 22.5 billion in 1H2017, representing an underlying 16% increase year-on-year if excluding the one-off gain on VISA shares in 2016. The banking group realised a record underlying net profit of HUF 12.4 billion in 2Q2017. Both net interest and fee income increased y-o-y driven by higher business volumes and the growth in our customer base, offsetting the negative impact from the low interest rate environment. The results are also supported by the lower level of credit impairments, bank tax and corporate income tax. K&H granted a total of HUF 152 billion new loans in1H17 (Retail, SME and Corporate) representing the financing of nearly 16 000 individuals and more than 1400 projects of our SME and corporate clients. K&H Bank is the second largest player in the market based on total assets as well as customer loan and deposit volumes” – announced David Moucheron, CEO of K&H Group.
“Our market share in lending increased from 9.9% in June 2016 to 10.0% in June 2017. K&H granted HUF 92 billion new loans in 1H 2017 to SMEs and Corporate clients, loan portfolio to SMEs and Corporates grew by HUF 47 billion (7% year-on-year). K&H provided new retail mortgages in the value of HUF 48 billion, which means a 32% growth year-on-year and cash loans in the volume of HUF 12 billion, more than doubled year-on-year in 1H2017“ - said Attila Gombás, CFO of K&H Group.
Attila Kaszab, deputy CEO of K&H Insurance added: “Thanks to our customer focused strategy we were again able to outperform the market by growing our non-life gross written premium with 20% year-on-year and our life insurance gross written premium with 25% for pure risk insurance and 38% for regular pension and unit-link insurances in 1H2017.˝
K&H’s unaudited, consolidated results according to International Financial Reporting Standards (IFRS) were as follows:
|
HUF billion |
30 June, 2016 |
30 June, 2017 |
variance |
|---|---|---|---|
|
net profit |
23.0 |
22.5 |
-2.1% |
|
net profit (excl. VISA gain in 2016) |
19.4 |
22.5 |
+16.2% |
|
loans to clients |
1245 |
1306 |
+4.9% |
|
deposits from clients |
1945 |
2089 |
+7.4% |
|
AuM in mutual funds |
895 |
806 |
-9.9% |
|
operating income |
72.4 |
71.9 |
-0.7% |
|
operating expenses incl. FTL paid |
-44.5 |
-45.5 |
2.2% |
|
quality of loan portfolio |
|
|
|
|
NPL |
12.5% |
8.6% |
-3.9% |
|
credit costs |
-0.1% |
-0.5% |
-0.4% |
|
capital and liquidity |
|
|
|
|
capital adequacy (group) |
16.1% |
15.1% |
-1.0% |
|
loan to deposit ratio |
64.2% |
62.8% |
-1.4% |
|
solvency ratio (insurance) |
268% |
257.3% |
|
|
efficiency |
|
|
|
|
cost/income ratio (excl. VISA) |
66.7% |
67.1% |
+0.4% |
|
cost/income ratio (excl. VISA + bank tax) |
61.5% |
63.3% |
+1.8% |
|
ROE |
20.0% |
17.1% |
-2.9% |
|
ROE excl. VISA |
16.8% |
17.1% |
+0.3% |
contact person
K&H Communications Directorate
- sajto@kh.hu