K&H Bank reports a net profit of HUF 31.7 billion and K&H Insurance a HUF 7 billion in the first 9 months of 2020
Sustained 16% increase in lending for the first 9 months yoy driven by the economic rebound in Q3

K&H continues delivering digital innovations with the launch of the K&H+ mobility solution

K&H Bank had resilient financial results  in the first 9 months of 2020, recording HUF 31.7 billion net profit, a 11% increase yoy on underlying basis excluding the HUF 11.2 billion negative pre-tax impact of exceptional  items.

In the first 9 months of  2020, K&H Insurance reached a profit after tax of HUF 7  billion.

  • In the first nine  months of the year, K&H provided a total of HUF 457 billion new loans and its total loan volume  increased by 16% yoy reaching HUF 1,863 billion driven by strong Q3.  
  • Transactional turnover in Q3  recovered from its bottom in Q2.  Strong business volumes have been driven  by the economic rebound of Q3, while a new slowdown is expected in Q4 due to the 2nd wave of the pandemic. 
  • Retail loans new production market share increased to 13.6% in Q3 (vs. 10.0% in Q32019).  
  • K&H has so far contracted Funding For Growth Hajrá loans in the value of HUF 130 billion. 
  • K&H is continuing its digital innovations by launching K&H+, offering a mobility solution in its mobile bank app, automatically available to more than 460 000 mobile bank users.

Financial results, Q32020

In the first 9 months of 2020, K&H Bank posted a net profit of HUF 31.7 billion, which also includes HUF 11.2 billion negative pre-tax impact of exceptional items: HUF 3.6 billion modification loss related to the payment moratorium, HUF 19.0 billion IFRS9 impairment on the expected future credit losses due to the pandemic and a pre-tax gain of HUF 11.4 billion related to the transfer of activities/operations of K&H Fund Management to the Hungarian Branch of KBC Asset Management. This operation will be delivering synergies for the KBC Group while clients will continue to enjoy the same high standard of services as before.

K&H’s underlying positive net profit increased by 11% yoy in the first 3 quarters thanks to the growing business volumes – especially in Q3 due to the economic rebound - and good cost control. Regarding the economic activities of K&H clients, following the bottom in Q2 the incoming account turnover of Corporates and Micro SMEs started to increase in Q3. Corporate account turnover is now above pre-pandemic level while Micro SME turnover has not fully recovered to the pre-crisis level yet. However K&H Bank expects a renewed slowdown in the economy in Q42020 due to the 2nd wave of the pandemic.

”K&H Bank keeps playing an active role in financing the Hungarian economy, houesholds, small businesses, large corporations and the public sector. In the first nine months of the year, we provided a total of HUF 457 billion new loans and our total loan volume increased by 16% yoy, reaching HUF 1,863 billion. Retail loans new production market share increased to 13.6% in Q3 (vs. 10.0% in Q32019). Retail loans new production reached HUF 172 bln in Jan-Sep (67 billion in Q3), growing by 21% yoy (or 36% yoy in Q3 excl. baby boom). The corporate loan portfolio increased by 16% yoy in Q32020. In the ‘Funding for Growth–Hajrá! scheme we contracted a total amount of 130 billion by 30 September, representing a market share of 15% exceeding the natural market share of our financial institution. The government bonds’ volume in our balance sheet reached HUF 1095 billion by the end of Q32020 representing a 31% growth yoy”, said Attila Gombás, CFO at K&H Group.

Continuous digital transformation and innovations

The coronavirus pandemic has accelerated the usage of digital banking and insurance solutions. 94% of K&H active clients are digitaly active. K&H mobile bank client number reached 462 000 by Q32020, a growth of 29% yoy. This means that there are now 1.5 times more clients using their mobile bank app than the e-bank platform. Over the past year, K&H customers have on average used their mobile bank app 3.8 million times a month. This September, new records were set: e-bank log-ins exceeded 2.5 million, and the mobile bank app was used by K&H customers 4.3 million times, This means that a K&H client on average logs in every other day in their electronic banking.

”People are living their lives more and more on their mobiles. So we will continue to invest and develop our mobile offering: last month, we launched K&H+ in our mobile app. Our clients can now purchase over 1000 types of BKK and Volánbusz tickets and passes in 70 cities, in just a few clicks and without even needing to enter credit card details. This solution is automatically available to all of our 460 000 mobile bank users. Just within 2 weeks we have already completed 1000 succesful purchases in the app. Also, from now on K&H customers can activate, suspend or block their bank cards and check their pin code in their mobile application, a unique feature in the Hungarian banking market”, David Moucheron, CEO of K&H Group, highlighted.

Nik Vincke, CEO of K&H Insurance, added the following: ”In Q32020 our net profit reached HUF 7.0 billion. In Non-Life, premium income reached HUF 40.0 billion, growing by 6% yoy. Life brought strong business performance with a 45% yoy growth in regular unit-linked pension, 41% yoy growth in regular unit-linked non-pension and 24% yoy growth in individual risk products. Our digital service is permanently improving: Paperless sales process was introduced for regular savings life insurances in bank branches. Thanks to simplification and digitalization custmers can conclude their insurance contacts in half the time they used to.”

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

HUF billion

 30 Sept, 2019

30 Sept, 2020


net profit (excl. exceptionals)




net profit




loans to clients




deposits from clients




AuM in mutual funds (supernet)




operating income excluding exceptional items




operating expenses incl. FTL paid




quality of loan portfolio








credit costs




capital and liquidity




capital adequacy (banking group)




loan to deposit ratio




solvency ratio (insurance)








cost/income ratio (incl. bank tax)




cost/income ratio (excl. bank tax)








contact person

K&H Communications Directorate

  • sajto@kh.hu