K&H Banking Group reports a net profit of HUF 37.7 billion and K&H Insurance a HUF 3.9 billion in the first 9 months of 2019

“K&H Banking Group had a strong financial performance in the first 9 months of 2019 and recorded HUF 37.7 billion net profit, a 5% increase yoy in underlying profit. K&H Bank realised a net profit of HUF 11.4 billion in the third quarter of 2019. Fulfilling its role to finance the economy K&H granted HUF 383 billion new loans in the first 9 months of 2019. Mortgage new production reached 8% yoy increase, cash loans 50% yoy increase, both beating the market. The baby boom loan application volume amounted to HUF 39 billion in volume and 4000 in application number by 31 October. Subscription of MÁP+ reached HUF 136 billion by 31 October. In the MNB corporate bond K&H participated in tenders for half of the deals”, said Attila Gombás, CFO of K&H Group.

“In the first 9 months of 2019 K&H accelerated its digital, innovative transformation, focusing on offering best-in-class user experience across channels, while simplifying its processes and organization. 

• K&H’s innovative fully online cash loan disbursement in its mobile bank app and e-bank reached 25 % of new cash loan production in September. 
• The number of registered mobile bank users has grown to 365 000 by end of October, a 39% increase yoy. Every month, 9000 additional customers start using the mobile bank app at K&H.
• K&H Bank was the first on the market this autumn to introduce the first SRI (Sustainable and Responsible Investment) balanced fund managed in Hungary, the so-called K&H Sustainable Development Balanced Fund. With the introduction of this fund, K&H can now offer SRI funds not only to a limited group of customers with very dynamic risk rating but also as a key component of portfolio building. All elements of the funds went through environmental, social and governance screening.

We aim to offer a positive daily banking experience in the most convenient, fastest and simplest way possible, primarily via our mobile application, in line with the needs of customers in the 21st century,”  - said David Moucheron, CEO of K&H Group.

Nik Vincke, CEO of K&H Insurance added: “In 2019Q3 net profit increased by 20% yoy and reached HUF 3.9 billion. In Non-Life, premium income reached HUF 37.8 billion, growing by 34% yoy. Life brought strong business performance with a 43% yoy growth in regular unit-linked (including pension) and 20% yoy growth in individual risk products. In the third quarter, we finished the innovative, mobile-friendly design of our client portal.  We have about 123 thousand client portal users at the end of Q3 2019, which shows a yoy growth of 23%. Now, all functions of the client portal are usable on tablets and mobile phones as well. In order to help visually impaired people, the site is also available in visually supporting mode.”

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