K&H Bank generates a net profit of HUF 7.1 billion in H1 2020
Despite high credit costs related to the expected future credit losses due to the pandemic, positive net result reported in both quarters

The net profit of K&H Insurance reaches HUF 5.5 billion in H1 2020

K&H Bank closed H1 2020 with net profits of HUF 7.1 billion including HUF 22.6 billion Covid-19 related exceptional negative items. Despite high credit costs, positive net result was reported in both quarters (Q1 2020: HUF 6.5 billion, Q2: HUF 0.6 billion). K&H Bank’s underlying profit increased by 12% yoy. In H1 2020, K&H Insurance reached a profit after tax of HUF 5.5 billion. In the first six months of the year, K&H provided a total of HUF 293 billion in new loans.  K&H continues its digital transformation and investments during Covid-19 pandemic. K&H is the first on the Hungarian market to offer fully digital, automated Home, Travel and MTPL insurance in a bank mobile application.

Financial results, H1 2020

K&H Bank posted a net profit of HUF 7.1 billion in H1 2020, including the following Covid-19 related exceptional negative items: HUF 3.6 billion modification loss related to the payment moratorium and HUF 19.0 billion IFRS9 impairment on the expected future credit losses due to the pandemic. Thanks to  growing business volumes and good cost control, K&H achieved positive net profit in both quarters, namely HUF 6.5 billion in Q1 2020 and HUF 0.6 billion in Q2 2020. K&H Bank’s underlying profit increased by 12% yoy. K&H Bank recorded sustained increase in customer loans (a 14 % growth yoy) and deposits (a 21 % growth yoy). K&H granted a total of HUF 293 billion new loans in H12020, a 17% increase yoy.  Retail loan new production reached HUF 104 billion, growing by 39% yoy including HUF 25 billion worth of baby boom loans.

‘K&H Bank keeps playing an active role in financing the economy. The corporate loan portfolio increased by 11% in H1 2020. From April 2020 we joined the MNB scheme, ‘Funding for Growth–Hajrá! and contracted a total amount of 69 billion by 31 July, representing a market share of 24%, far exceeding the natural market share of our financial institution’, said  Attila Gombás, CFO at K&H Group.

Covid-19 impact

During the pandemic K&H provided uninterrupted service to its clients. The impact of he pandemic on banking operations was clear but is gradually recovering.  For example, the number of branch visits during mid-March-mid May period has fallen by 44% compared to the first quarter of the year.  By now, however for non-cash visits the traffic is back to the level before the pandemic. The pandemic also significantly affected business dynamics, across sectors. The annual growth rate in corporate clients’ current account turnover decreased by 5% in Q2 compared to that of previous quarter. Encouragingly, from the bottom in May, the turnover of Corporates started to increase again with the stabilization of the economic situation and is now back to pre-pandemic level. Micro SME turnover, however, has not fully recovered to the first quarter level yet. 

‘The coronavirus pandemic has also accelerated the usage and affinity of clients towards digital banking and insurance solutions. Mobile Bank usage accelerated during the pandemic in all age groups, and exponentially in the senior age groups, most notably among those over 65 years with an annualized growth of 68% when compared to usage rate a year ago. In all other younger age groups, the majority of bank contacts are made already from mobile bank’, David Moucheron, CEO of K&H Group, highlighted.

Nik Vincke, CEO of K&H Insurance, said the following: ’In 2020H1 net profit reached HUF 5.5 billion. In Non-Life, premium income reached HUF 28.3 billion, growing by 5% yoy. Life brought strong business performance with a 24% yoy growth in regular unit-linked pension and 7% yoy growth in individual risk products. For the first time on the Hungarian market, clients can also take out Home, Travel and MTPL insurance using their mobile banking applications. With a few clicks and 3 data only  existing bank customers get a price quote and they can contract fast and convenient new policies. Also on the claims side we improved our service again:  from now on, in case of damage to the house,  K&H  can immediately can pay out the money on the spot  through an instant payment.’

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

HUF billion

 30 June, 2019

30 June, 2020


net profit (excl. exceptionals)




net profit




loans to clients




deposits from clients




AuM in mutual funds (supernet)




operating income excluding exceptional gain on sale of investments




operating expenses incl. FTL paid




quality of loan portfolio






3.0 %


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