K&H Banking Group recorded a profit of HUF 22.5 billion in 1H2017

„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:

K&H Group

As one of the leading financial institutions in this country and employing over  4 100 employees nationwide, the goal of K&H is to serve the needs of its customers at a high standard of quality at all times and to offer them the most comprehensive product range possible. K&H operates 208 retail branches throughout the country and offers financial services to around a million retail, SME and corporate customers. It supports the Hungarian economy with more than 1 700 bln in credit and credit commitments granted, financing households, small businesses, large corporations and municipalities. K&H’s lending to the sovereign amounts to HUF 664 bln on 30 June 2017. Across its operations, the Group relies on around 4000 Hungarian suppliers and around 700 banking and insurance agents, guaranteeing them regular business.

Key figures:

K&H Bank As at the end of 2Q2017:
Shareholder’s equity (IFRS consolidated, non-audited): HUF 244 billion
Total assets (IFRS consolidated, non-audited): HUF 2 809 billion
After-tax profit (IFRS consolidated, non-audited): HUF 22.5 billion

K&H Insurance As at the end of 2Q2017:
Shareholder’s equity (IFRS consolidated, non-audited): HUF 12.1 billion
Total assets (IFRS consolidated, non-audited): HUF 165.5 billion
Insurance technical profit (IFRS consolidated, non-audited): HUF 2.47 billion
After-tax profit (IFRS consolidated, non-audited): HUF 1.37 billion