K&H Banking Group recorded HUF 15 billion – excluding exceptional gain from a property transaction HUF 13 billion - net profit in 2018Q1
K&H Insurance reached HUF 1 billion net profit in 2018Q1 - K&H launched 15 and 20-year fixed interest rate mortgage loans and continues to invest in digitalization
K&H Banking Group closed 2018Q1 with an after-tax profit of HUF 15.1 billion. Excluding a HUF 2.1 billion exceptional gain from a property transaction, net profit amounted to HUF 12.9 billion, a 30% increase yoy. The profit growth is primarily due to higher business volumes, increasing number of customers served and further decreased credit costs. In 2018Q1 income increased by 8% yoy, driven by 7.5% net interest income and 10.6% fee income growth. K&H Insurance reached HUF 1.0 billion net profit in 2018Q1, an increase of 22% yoy.
“Both customer loans and deposits increased yoy. Customer loans reached HUF 1412 billion in 2018Q1, which compares to HUF 1287 billion in 2017Q1 (+10%). As a result market share in lending increased from 10.1% in March 2017 to 10.4% in March 2018. Deposits reached HUF 2244 billion in 2018Q1, which compares to HUF 2102 billion in 2017Q1 (+7%)”, said Attila Gombás, CFO of K&H Group. “On the loan side both the NPL rate and credit costs decreased further. On the savings side, a 3.1% increase in mutual funds was recorded, marking a positive turning point. As a consequence, our loan to deposit ratio increased by 1.3% to 62.9%”, added Gombás.
Nik Vincke, CEO of K&H Insurance said: “We managed to grow in all main product groups in our non-life business, which resulted in an income of HUF 12.4 billion, a 10% growth yoy. In our life business, the driving force behind the strong business performance was the pension product with a 75% yoy growth.”
“We are obviously pleased with these solid financial results. They reflect the strength of our customer franchise. This spurs us to continue to improve our client service and adapt to their changing needs. For example, we recently extended our product range with 15 and 20-year fixed interest rate mortgage loans, qualified as customer friendly by NBH. We also continue our investments in digitalisation to offer ever simpler and smoother banking and insurance solutions to our clients. On the retail side we, for example, introduced electronic signature on tablets, saving paper and hassle for our clients. For our corporate clients we launched our Trade Platform in 2018Q1, a business partnering community for corporations across European countries, which also provides extensive market information for them”, announced David Moucheron, CEO of K&H Group.
K&H Bank’s unaudited, consolidated results according to International Financial Reporting Standards (IFRS) were as follows:
|
HUF billion |
31 Mar, 2017 |
31 Mar, 2018 |
variance |
|---|---|---|---|
|
net profit |
10.1 |
15.1 |
+ 50.4% |
|
net profit without property transaction |
10.1 |
13.1 |
+30.0% |
|
lending |
1287 |
1412 |
+9.6% |
|
deposits from clients |
2102 |
2244 |
+6.7% |
|
AuM in mutual funds |
778 |
802 |
+3.1% |
|
operating income |
35.5 |
38.3 |
+7.8% |
|
operating expenses incl. FTL paid |
-22.5 |
-23.2 |
+3.0% |
|
quality of loan portfolio |
|
|
|
|
NPL |
9.4% |
7.7% |
-1.7% |
|
credit costs |
-0.1% |
-0.5% |
-0.4% |
|
capital and liquidity |
|
|
|
|
capital adequacy (group) |
14.7% |
16.6% |
+1.9% |
|
loan to deposit ratio |
61.6% |
62.9% |
+1.3% |
|
solvency ratio (insurance) |
254% |
249% |
|
|
efficiency |
|
|
|
|
cost/income ratio (incl. bank tax) |
67.2% |
64.3% |
-2.8% |
|
cost/income ratio (excl. bank tax) |
63.3% |
60.5% |
-2.8% |
|
ROE |
16.6% |
23.5% |
+6.9% |
contact person
K&H Communications Directorate
- sajto@kh.hu