K&H Mortgage Bank lifts profit as its balance sheet grows

K&H Mortgage Bank’s unaudited half-year report shows net profit of HUF 537 million, compared with HUF 368 million in the same period a year earlier. Higher net interest income supported the improvement, while operating costs rose only moderately.

Total assets increased to HUF 348.2 billion from HUF 285.8 billion at the end of last year. Loans and receivables measured at amortised cost expanded by 21.75%, mainly because of greater refinancing of K&H Bank’s retail mortgage portfolio. Outstanding debt securities reached HUF 335.0 billion, up from HUF 273.2 billion at the end of December, a rise of 22.64%.

Net interest and similar income climbed to HUF 949 million from HUF 745 million, an increase of 27.4%. The mortgage bank solely refinances K&H Bank’s household mortgage loans, making the rapid balance-sheet expansion relevant to the funding side of Hungary’s housing-credit market. The figures come from the bank’s own unaudited statements and do not cover the full K&H banking group.

For context, see our BSE pre-open briefing and our report on another bank’s half-year results. The primary report is available on the BSE website.