K+H Bank Revenue Rises as Government Measures Weigh

K+H Bank, the Hungarian unit of Belgian's KBC, delivered a strong performance in the first half of the year, however, government measures like the windfall tax and the bank levy reduced its results by HUF 78bn, CEO Peter Roebben said at a press conference on Wednesday.

He emphasized that the bank’s operating revenue rose by 3% to HUF 196 billion, while net interest income increased by 9% to HUF 125 billion in the first half of the year.

At the same time, despite strong operating results and expanding lending, net income fell by 80% to HUF 10 billion, compared to HUF 50 billion in the same period of the previous year, he said.

Of all the countries where KBC’s subsidiaries operate, Hungary has the highest level of special taxes, while the bank’s actual business performance is growing dynamically, he added, noting that they understood the new government’s intention to phase these out gradually.

In his assessment, the bank’s business model is sound, and it is performing well amid strong market competition. They achieved double-digit growth in both loans and deposits: the loan portfolio expanded by 17% to HUF 3,733 billion, while customer deposits grew by 11% to HUF 4,463 billion.

Assets under management in investment funds rose by 22% to HUF 2,275 billion by the end of the first half of the year.

Attila Gombás, head of the financial division at K&H Bank, explained that the extra profit tax tripled, rising from HUF 14.9 billion to HUF 46.8 billion. Excluding the impact of government measures, the bank’s net profit would have been HUF 77.4 billion.

Retail lending surged, with new disbursements rising 76% to HUF 288 billion in the first half of the year; within this, mortgage lending increased from HUF 93 billion to HUF 197 billion, he noted.

He also described the 11% increase in the corporate loan portfolio to HUF 2,124 billion as a significant achievement. The leasing portfolio reached HUF 118 billion, with new leasing volume totaling HUF 22 billion in the first half of the year.