K&H Bank's After-Tax Profit Declined in H1 2025

K&H Bank's after-tax profit fell to HUF 50.2 billion in the first half of the year, down from HUF 66.9 billion a year earlier, with government measures accounted for during the period reducing the financial institution's results by HUF 31 billion, the financial institution told MTI on Thursday.

Peter Roebben, CEO of the K&H Group, said in the announcement that despite economic challenges, stagnant economic growth, and higher-than-expected inflation, the financial institution performed exceptionally well. In addition to government burdens, the decline in after-tax profit was influenced by IT investment costs.

According to the announcement, the number of the bank's customers rose by 4% to 1 million, with digitally active customers accounting for 80% of the total portfolio. K&H currently operates nearly 600 ATMs and will install an additional 117 by the end of next year in accordance with MNB regulations. According to their calculations, the annual cost of maintaining ATMs is nearly HUF 2 billion. K&H's revenues increased by 6% and net interest income by 4%, while operating costs rose by 19% due to wage increases and new digital and IT developments. The bank's total loan portfolio grew by 7% year-on-year to HUF 3,193 billion, while deposits grew at a similar rate to HUF 4,038 billion.

The bank's total loan portfolio grew by 7% year-on-year to HUF 3,193 billion, while deposits grew at a similar rate to HUF 4,038 billion. In the first half of the year, K&H disbursed nearly HUF 413 billion in new loans, while assets under management in investment funds rose by 20% to over HUF 1,872 billion.

Demand for corporate loans grew by 4% above the banking sector average, and K&H is actively participating in state-supported financing schemes, according to Attila Gombás, CFO of the K&H Group, quoted in the press release.