K&H Banking Group reports a net profit of HUF 45.1 billion in the first 9 months of 2018
K&H Insurance reached HUF 3.2 billion net profit in the first 9 months of 2018. K&H increased the corporate loan portfolio by 17% and the retail one by 4%, both faster than the market.
K&H Bank realised a net profit of HUF 13.6 billion in the third quarter of 2018, a yoy increase of 40%. Its net profit reached HUF 45.1 billion in the first nine months of 2018, a yoy increase of 40%. Excluding a HUF 4.2 billion exceptional gain from property transactions and financial instruments, net profit amounted to HUF 40.9 billion, a 27% increase yoy. The profit growth is primarily due to higher business volumes, the increasing number of customers served and favourable credit costs. K&H increased the corporate loan portfolio by 17% and the retail one by 4%, both faster than the market. In the first 9 months of 2018 K&H Insurance reached HUF 3.2 billion net profit, 20% increase yoy.
“K&H increased the corporate loan portfolio by 17% and the retail one by 4%, both faster than the market. K&H granted a total of HUF 372 bln new loans in 2018 until end of September. As a result of the growth of our lending activity, our loan to deposit ratio increased by 2.8% over the last 12 months, to 65%. In the first nine months of 2018 our income increased by 12% yoy, driven by 3.4 % net interest income and 12.6% fee income growth”, said Attila Gombás, CFO of K&H Group.
Nik Vincke, CEO of K&H Insurance said: “In the first 9 months of 2018 our net profit increased by 20% yoy and reached HUF 3.2 billion. In non-life premium income reached HUF 28.2 billion, growing by 12% yoy, driven by MTPL. Life brought strong business performance with a 17% yoy growth in pure risk products.”
“From our commercial activities I would call attention to four new items:
- First, our regular investment product that we introduced to our clients in September has largely outperformed our expectations as over 5000 clients signed up for this service in just 2 months.
- concerning digital services 84% more of our clients use our mobile bank services than a year ago, and every 7th clients have already a biometric profile using their biometric signature. This is a further step to make our transactions fully paperless.
- We are also proud to see that our start-up incubator program Start it @K&H became the market leader in the private sector in the Hungarian start-up ecosystem with 22 start-ups. K&H supports these future entrepreneurs to become successful SMEs in the future.
- And last but not least for SME clients we have sped up our investment loan process to 48 hours.
These innovations show our commitment to continuously improve our services in order to, andhelp them realise their dreams and protect them,” 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 Sept, 2017 | 30 Sept, 2018 | variance |
|---|---|---|---|
| net profit | 32.2 | 45.1 | +40.1% |
| loans to clients | 1362 | 1490 | +9.4% |
| deposits from clients | 2199 | 2293 | +4.3% |
| AuM in mutual funds | 781 | 819 | +4.9% |
| operating income excluding exceptional gain on sale of investments | 109.1 | 122.1 | +12.0% |
| operating expenses incl. FTL paid | -69.5 | -72.3 | +4.0% |
| quality of loan portfolio | |||
| NPL | 7.8% | 6.8% | -1.0% |
| credit costs | -0.3% | -0.2% | +0.1% |
| capital and liquidity | |||
| capital adequacy (banking group) | 14.9% | 16.2% | +1.3% |
| loan to deposit ratio | 62.2% | 65.0% | +2.8% |
| solvency ratio (insurance) | 222% | 200 % | |
| efficiency | |||
| cost/income ratio (incl. bank tax) | 67.5% | 62.7% | -4.8% |
| cost/income ratio (excl. bank tax) | 63.7% | 59.2% | -4.5% |
| ROE | 17.3% | 22.2% | +4.9% |
contact person
K&H Communications Directorate
- sajto@kh.hu