K&H Bank reports a profit of HUF 32.2 billion in the first 9 months of 2017

„K&H recorded a solid commercial and financial performance in the first three quarters of the year. We increased our new production of loans by 79% in the first nine months of the year compared to the same period last year growing faster than the market in loan new production. This represents over HUF 1 billion new loans every day, financing nearly 25,000 households and 2,300 projects of our SME and corporate customers this year.  With this we are clearly playing our role of supporting the economy.” – announced David Moucheron, CEO of K&H Group.

“Our net profit reached HUF 32.2 billion in the first three quarters of 2017, representing an underlying 8.1% increase year-on-year if excluding the one-off gain on VISA shares in 2016. The bank realized a net profit of HUF 9.7 billion in the third quarter of 2017. Both net interest and fee income increased year on year, by 3.2 and 2.6% respectively, 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.” - said Attila Gombás, CFO of K&H Group.

K&H’s market share in retail lending increased from 9.8% in September 2016 to 10.3% in September 2017. By 30 September 2017 K&H provided HUF 79 billion worth of new mortgage loans, a 34% growth on a year on year basis, and HUF 19 billion worth of new cash loans representing a 78% increase year on year, in 2017. Its market share in mortgage loans new production reached 16.3% and in cash loans 7.4% in the third quarter of 2017.

The new production of business loans fueled by structured finance and commercial and residential real estate deals amounted to HUF 178 billion in the first three quarters of the year, representing a 112 % increase, i.e. more than doubling compared to the same period last year.  K&H could increase both its customer loan and deposit portfolios significantly in the first nine months of 2017 representing HUF 1367 billion loans (+8% y-o-y) and HUF 2199 billion deposits (+15% y-o-y)

In addition to these commercial results K&H continued to invest in digitalisation too to offer simple and smooth banking and insurance solutions to its customers. “The introduction of the K&H mobile wallet integrated into our K&H mobile bank as well as the upgrade of our K&H e-bank with such new services as the K&H e-portfolio, analysing and recommending on the clients’ investments, or the K&H loan overview, showing the current capital and instalment to be paid by the clients, are an integral part of our digitalisation process and greatly contributes to the successful implementation of our strategy.” – added David Moucheron.

Nik Vincke, CEO of K&H Insurance added:  “Thanks to our customer focused strategy and our dedicated sales people we were able to outperform the market both in non-life and in regular life insurances with a year on year growth of 18% and 11%, respectively.  As usual we have an attractive offer in the MTPL campaign at the end of 2017.”

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