K&H Banking Group recorded a profit of HUF 39.2 billion in 2016
K&H Insurance 2016 profit was HUF 2.8 billion
K&H Banking Group closed 2016 with an after-tax profit of HUF 39.2 billion. This amount compares to a profit of HUF 37.9 billion in 2015. The profit increase is due to the combined effect of higher business volumes, more customers, decreasing credit costs and reducing bank tax. The year also included one-off items such as the non-recurring impact of VISA transaction in Q2 and the negative deferred tax impact of the announced corporate income tax rate reduction in Q4. K&H Insurance in 2016 realised an after-tax profit of HUF 2.8 billion, HUF 881 million above previous year.
„In 2016 the net profit was HUF 39.2 billion, compared to a profit of HUF 37.9 billion in 2015, which is a 3.4% increase year-on-year. The profit increase is due to the combined effect of higher business volumes, more customers, decreasing credit costs and reducing bank tax. The year also included one-off items such as the non-recurring impact of VISA transaction in Q2 and the negative deferred tax impact of the announced corporate income tax rate reduction in Q4. Our market share in lending increased from 9.8% in 2015 to 10.2% in 2016. K&H disbursed HUF 220 billion new loans in 2016” – announced Hendrik Scheerlinck, CEO of K&H Group.
“Loans to SMEs grew by HUF 27 billion year-on-year, K&H remained one of the most active participants in the FfG Scheme with HUF 357 billion contracted volume. K&H Bank keeps stable its position as being the second largest player in the market based on customer loan and deposit related volumes.“- said Attila Gombás, CFO of K&H Group.
K&H’s unaudited, consolidated results according to International Financial Reporting Standards (
|
HUF billion |
31 Dec, 2015 |
31 Dec, 2016 |
variance |
|---|---|---|---|
|
net profit |
37.9 |
39.2 |
3.4% |
|
operating profit before provisions and bank tax |
59.9 |
58.8 |
-2.0% |
|
lending |
1254 |
1290 |
+2.8% |
|
deposits from clients |
1873 |
2141 |
+14.3% |
|
AuM in mutual funds |
1001 |
811 |
-19.0% |
|
operating income |
145.6 |
150.1 |
+3.1% |
|
operating expenses incl. FTL paid |
-85.6 |
-91.3 |
+6.6% |
|
quality of loan portfolio |
|
|
|
|
NPL |
13.3% |
9.8% |
-3.5% |
|
credit costs |
0.1% |
-0.3% |
-0.4% |
|
capital and liquidity |
|
|
|
|
capital adequacy (group) |
13.9% |
15.4% |
+1.5% |
|
loan to deposit ratio |
67.2% |
60.5% |
-6.7% |
|
solvency ratio (insurance) |
169% |
232% |
|
|
efficiency |
|
|
|
|
cost/income ratio (incl. banktax) |
69.7% |
65.9% |
-3.8% |
|
cost/income ratio (excl.banktax) |
58.8% |
60.8% |
+2.0% |
|
ROE |
19.6% |
16.2% |
-3.4% |
Attila Kaszab, deputy CEO of K&H Insurance added: “In 2016 our net result reached HUF 2.8 billion, which is 46% above previous year. Our customer focused strategy results in dynamic growth. We finished 2016 with double digit growth in GWP in regular (12%). The life reserves reached HUF 105 billion at the end of 2016, which means a 10.6 % year-on-year growth. In non-life, premium income reached HUF 27.6 billion, a 23% growth year-on-year."
contact person
K&H Communications Directorate
- sajto@kh.hu