In the first half of 2026 K&H Group expanded its business activity and customer base, but after‑tax profit dropped to one‑fifth of the year‑earlier level as higher regulatory levies and the extended interest‑rate cap weighed on earnings.
Key financial figures
- Operating income increased by 3 percent to HUF 196 billion in the first six months of the year.
- Operating costs, which include bank taxes and extra profit levies, rose 24 percent to HUF 158 billion.
- As a result, K&H Bank’s profit fell to HUF 10 billion in H1 2026, down from HUF 50 billion in the same period last year.
The deterioration in profitability was driven mainly by HUF 58.3 billion in bank and extra profit taxes and a HUF 15.5 billion loss attributable to the interest‑rate cap (kamatstop).
In the insurance segment, K&H Biztosító paid HUF 4.1 billion in special levies and ended the half with a HUF 1.6 billion profit, while premium income in both life and non‑life lines increased.
Lending and savings: strong growth
Despite weaker profitability, the bank materially expanded lending and savings:
- Total loan volume grew 17 percent to HUF 3,733 billion.
- Retail lending surged by 76 percent. Mortgage disbursements more than doubled to HUF 197 billion, and personal loans rose to HUF 66 billion.
- Corporate lending increased by 11 percent, supported by active intermediation of state‑backed financing programs as well as project finance and leasing transactions.
Customer savings also grew: deposits rose 11 percent to HUF 4,463 billion, and assets under management in investment funds increased 22 percent to HUF 2,275 billion. The government securities portfolio showed a modest expansion as well.
Customers and digital services
- The bank’s customer base rose 6 percent to 1.1 million, with roughly 80 percent of customers digitally active.
- A majority of new retail accounts and personal loans are now applied for online.
K&H highlighted its digital investments: the AI‑based digital assistant Kate handles about half a million customer interactions per month and is capable of resolving nearly three‑quarters of incoming requests autonomously. The mobile banking app received multiple new features during the first half; the Kate Coin personalized loyalty program was launched and attracted 80,000 customers in a short time. The bank improved foreign‑currency transfers, card management and parking functions, made the interface accessible for visually, hearing and mobility‑impaired users, and extended app access to customers without a traditional current account (those holding only securities accounts, credit cards or SZÉP cards).
Why it matters
The figures show that K&H has increased market activity and client reach, but regulatory measures — notably higher bank and extra profit taxes and the extended interest‑rate cap — have substantially reduced near‑term profitability. The notable expansion of lending and savings provides a platform for revenue growth over the longer term if the regulatory environment stabilizes.
(This article was prepared with the assistance of an AI‑assistant; the final content was edited and verified by our journalist.)
