K&H Banking Group recorded HUF 31.5 billion net profit in 2018H1, HUF 27.4 billion excluding exceptional gains from property and financial instruments transactions
K&H Insurance reached HUF 2.2 billion net profit in 2018H1 - The share of new housing loans applications with fixed rate significantly increased to 82% by end of 2018H1
K&H Banking Group closed 2018H1 with an after-tax profit of HUF 31.5 billion. Excluding a HUF 4 billion exceptional gain from property transactions and financial instruments, net profit amounted to HUF 27.4 billion, a 22% increase yoy. The profit growth is primarily due to higher business volumes, the increasing number of customers served and favourable credit costs. In 2018H1 income excluding gains from property transactions and financial instruments increased by 11.6 % yoy, driven by 4.6 % net interest income and 12 % fee income growth. K&H Insurance reached HUF 2.2 billion net profit in 2018H1, an increase of 63 % yoy.
“Both customer loans and deposits strongly increased yoy. Customer loans reached HUF 1459 billion in 2018H1, which compares to HUF 1306 billion in 2017H1 (+12%). As a result, K&H market share in lending increased from 10.0% in June 2017 to 10.3% in June 2018. Deposits reached HUF 2329 billion in 2018H1, which compares to HUF 2089 billion in 2017H1 (+12%)”, said Attila Gombás, CFO of K&H Group. “Thanks to the growth of lending activity, our loan to deposit ratio increased by 1.5% to 62.7% since the end of 2017”, added Gombás.
Attila Kaszab, deputy CEO of K&H Insurance said: “In 2018 H1 net profit increased by 63% yoy and reached HUF 2.2 billion. In non-life premium income reached HUF 20.4 billion, growing by 11% yoy, driven by MTPL. Life brought strong business performance with a 19% yoy growth in pure risk products.”
“Our solid financial results reflect the strength of our customer franchise and our role in supporting the Hungarian economy. We managed to grow both our total retail customer base to almost 700 000 (+1.4% yoy) by the end of 2018H1 and our regular income transfer customer (RIT) number to 400 000 (+7.4% yoy). This demonstrates an increasing appetite from our clients to trust more of their financial needs with K&H. K&H granted a total of HUF 228 bln new loans in 2018H1. Over the last 12 months our share of new housing loans applications with fixed rate significantly increased from 49% to 82% K&H offers the widest range of mortgage loans. We also continue our investments in digitalisation to offer ever simpler and smoother banking and insurance solutions to our clients. Since the introduction of biometric signature late last year, 60 000 clients have already a biometric profile. 20% of our account related daily banking transactions are now fully paperless enabled. With 209 cash-in ATMs we are also number one in the market. Almost half of branch deposit transactions are served by these ATMs, which enables clients to withdraw and deposit money 24 hours a day, 7 days a week” announced David Moucheron, CEO of K&H Group.
K&H Bank’s unaudited, consolidated results according to International Financial Reporting Standards (IFRS) were as follows:
|
HUF billion |
30 June, 2017 |
30 June, 2018 |
variance |
|---|---|---|---|
|
net profit |
22.5 |
31.5 |
+40% |
|
net profit without exceptional gains from property and financial instruments transactions |
22.5 |
27.4 |
+22% |
|
loans to clients |
1306 |
1459 |
+12% |
|
deposits from clients |
2089 |
2329 |
+12% |
|
AuM in mutual funds |
784 |
806 |
+3% |
|
operating income excluding exceptional gain on sale of investments |
71.9 |
80.3 |
+12% |
|
operating expenses incl. FTL paid |
-45.5 |
-47.4 |
+4% |
|
quality of loan portfolio |
|
|
|
|
NPL |
8.6% |
7.1% |
-1.5% |
|
credit costs |
-0.5% |
-0.3% |
+0.2% |
|
capital and liquidity |
|
|
|
|
capital adequacy (banking group) |
15.1% |
16.6% |
+1.5% |
|
loan to deposit ratio |
62.8% |
62.7% |
-0.1% |
|
solvency ratio (insurance) |
257% |
222 % |
|
|
efficiency |
|
|
|
|
cost/income ratio (incl. bank tax) |
67.1% |
62.7% |
-4.4% |
|
cost/income ratio (excl. bank tax) |
63.3% |
59.1% |
-4.2% |
|
ROE |
18.3% |
23.9% |
+5.6% |
contact person
K&H Communications Directorate
- sajto@kh.hu