K&H continued to achieve dynamic growth across its business lines and in its customer base.

Peter Roebben, CEO of K&H Group commented on the results as follows: “K&H delivered robust business performance in the third quarter. We are growing strongly in all our business lines and achieved HUF 91 billion profit after tax.  K&H Bank’s after-tax profit decreased by 15 percent year-on-year due to investment in new IT technology and the impact of a wide range of government measures. I am particularly pleased that more and more customers trust us with their financial services, and  the number of banking customers has grown by 5 percent, exceeding 1 million by the end of the third quarter. K&H is committed to bringing the best of innovation to customers;  80 percent of our customers are now digitally active.  Almost 800,000 customers have interacted with Kate, our AI digital assistant at least once, and more than 25 percent of digitally active retail customers regularly use Kate. However, we also believe in offering a human touch to our customers. Hence, we continue to invest in our service network across 192 locations in the country.”

“We remain committed to supporting sustainable transition for the economy and our efforts are also recognised by many awards in this domain. We won the Green Corporation of the Year award in portfolio’s Green Awards 2025, and we took first place in the Best Mixed Conservative ESG Fund category and third place in the ESG Fund Manager of the Year category at the Privátbankár Klasszis Sustainability 2025 awards. The National Bank of Hungary granted K&H Insurance the Green Finance Award in the Green Insurance and Pension Fund category. At the Portfolio Investment and Wealth Management event, we took home the ESG Sustainable Service Provider/Investment Solution of the Year award. My thank goes to the more than 3800 colleagues for making this outstanding performance possible.”- added the CEO.

Robust business results in the first three quarters of 2025

K&H Bank reported a HUF 91 billion after-tax profit, with the impact of government measures in the first nine months of the year totalling HUF 26 billion (before taxes). The Bank’s income grew by 7 percent. Net interest income increased by 5 percent, while the total loan portfolio grew by 9 percent year-on-year, to HUF 3,266 billion, and the deposit portfolio increased by 6 percent to HUF 4,053 billion. In the first nine months, K&H disbursed HUF 577 billion in new loans to corporate and retail customers. Operating costs rose by 17% due to cost pressures caused by inflation, salaries, spending on new digital and IT solutions, and bank taxes. K&H's government securities portfolio grew by 8% year-on-year to HUF 1,558 billion by the end of September 2025.

“The mortgage market continues to expand dynamically this year, and we have grown in line with the market by 12 percent in 12 months. The Home Start Program, launched in September, has generated significant demand, with an average of HUF 1 billion disbursed daily. We have received loans requests worth of more than HUF  200 billion by mid-November. We expect that the volume of home loans disbursement will exceed last year’s level by 50 percent by the end of this year thanks to the program, within which the proportion of subsidized loans at K&H may rise to 70 percent. The volume of cash loans disbursed increased by 39 percent year-on-year. K&H’s portfolio of preferential loans for workers reached 14 percent market share in the first nine months of 2025. The volume of deposits placed by retail customers reached HUF 1,487 billion representing an increase of 13 percent year-on-year. Assets managed in funds exceeded HUF 1,958 billion by the end of the third quarter, an 18 percent growth year-on-year, which clearly reflects the continued confidence of our customers,” -said Attila Gombás, Chief Financial Officer of the K&H Group.

“According to the latest K&H large corporate growth survey, after a decline in the previous quarter, large companies’ expectations regarding their economic outlook improved slightly in the third quarter of 2025. Most large domestic companies described their economic situation as stagnant, with 57 percent of the respondents saying that there will be no significant change in the next 12 months. 22 percent of company executives expect the economic situation to deteriorate in the next year, while roughly one-fifth reported improving expectations.   In a context where demand for corporate borrowing remains subdued, K&H nevertheless achieved 6 percent portfolio growth year-on-year. K&H continues to actively participate in state-subsidised financing schemes that support the day-to-day operations and development of businesses: our total contracted volume under the Széchenyi Card Program reached HUF 350 billion. K&H's project financing portfolio reached HUF 442 billion, representing a 12 percent market share. At the end of last year, K&H signed contracts worth approximately HUF 81 billion under the Demján Sándor Program launched by Eximbank, achieving a 16 percent market share. Széchenyi Card loans with 3 percent interest, consumer-friendly loans, and CAP loans are now also available to our customers. At the end of the third quarter of this year, our leasing portfolio exceeded HUF 113 billion, with new placements totalling HUF 33 billion”- added Attila Gombás.

Evgeni Benbasat, CEO of K&H Insurance, said: “In Q3 2025, K&H Insurance’s net profit, including HUF 3.8 billion in windfall tax, reached HUF 7.3 billion. In the corresponding period of 2024, the entire year’s windfall tax was HUF 1.2 billion of net profit. Premium income in the non-life insurance segment grew by 6 percent year-on-year to HUF 61.0 billion, with all business lines expanding steadily. Performance in life insurance also continued to improve significantly, with year-on-year growth reaching 17 percent, driven by regular premium, unit-linked pension and non-pension savings, as well as regular premium risk insurance.”

Digitalization and innovation

K&H's customer base exceeded 1 million, while the proportion of digitally active customers grew to 80 percent, and the number of mobile banking users exceeded 720 000 (a 12 percent increase year-on-year). Approximately 60 percent of new retail accounts are now opened digitally.

Kate, K&H’s artificial intelligence-based digital financial assistant, is an integral part of the Bank’s mobile banking application and is handling more and more tasks independently on behalf of customers – she is now able to resolve 70 percent of cases on her own. She has recently been upgraded with new features that make her even more personal, faster and easier to use. One of the most striking new features is that Kate, who now offers a prominent search field in the mobile banking app, addresses users by nickname, making digital transactions a much more personal experience. Customers can highlight the features they consider most important on the main screen, and widgets have also been created. For the most frequent payments, a new Kate widget helps speed up the process, offering access to transactions with regular partners with a single click. Kate now also supports customers in purchasing highway toll and even warns them when the term thereof is about to expire, so that they are not caught off-guard. She also guides customers through the entire account opening process, notifying them when the promotional conditions of the account opening campaign have been met, and when the funds have been received

New features in the K&H mobile bank include direct debit management, which is now available in the app on a transparent, user-friendly interface – for ease of use, each direct debit can be named, making them easier to find. For those frequently using public parking, the automatic extension of parking time provides convenience and helps avoid fines.

“With these new developments, we have made the mobile banking experience not only simpler but also much more personalized. In addition to making payments or managing their card details with just a few clicks, customers can now also immediately check their SZÉP Card balance, current account balance changes and upcoming payments on the home screen. The fact that they log into the mobile bank more than 14 million times a month and make 2.7 million transactions clearly shows that mobile banking has become the number one financial channel in our customers’ everyday lives,” said Gergely Lóska, Head of IT and Innovation at K&H.

“In terms of digitization, insurance services are also constantly improving thanks to our renewed sales process for designer and contractor liability insurance, from October our customers can take out new insurance policies with our sales representatives in half the time required before,” Mr Lóska added.

Sustainability

K&H stands out in the Hungarian banking market as it has increased its green loan portfolio to HUF 390 billion, achieving a market share over 25 percent in both the retail and corporate green loan markets. The volume of K&H’s green home loans exceeded   HUF 9 billion by mid-November, which corresponds to 5 percent of all new retail mortgage loans. K&H has disbursed green home loans worth HUF 28 billion.

“Investment funds promoting social and/or environmental sustainability reached another milestone in the last quarter: the assets in ESG funds now have approached HUF 1100 billion, accounting for 56 percent of the total managed portfolio.  The results of ESG funds, which focus on sustainability and social responsibility, shows that majority of our customers, make conscious decisions, as evidenced by the remarkable gross sales in the period.    We have sustainable solutions for every customer segment. With our agricultural calculator for corporate customers, we already have accurate greenhouse gas emission data for more than half of our agricultural portfolio and it helps to measure the impact of their sustainable investments. In retail mortgage lending, we offer interest rate discounts for financing energy-efficient properties or renovations. Our continuous sustainability efforts are duly recognised by our recent awards. Winning the Green Corporation of the Year at the Green Awards 2025, as well as K&H Insurance winning the Green Insurance Award of the National Bank of Hungary, constitute recognition of our commitment to combating climate change. Sustainability is not an isolated project for us, but an integral part of our business operations. To fight against climate change, we believe that banks must ensure the restructuring of the economy through a combination of financing, risk management, and education carried out simultaneously. K&H Group continues to pursue its goal of not only providing loans but also shaping customers’ attitudes towards sustainability”-said Peter Roebben, CEO of K&H Group.

K&H’s unaudited, consolidated results in accordance with IFRS (International Financial Reporting Standards):