Okay&H Financial institution achieved a internet revenue of HUF 21.4 billion, whereas Okay&H Biztosító achieved a destructive consequence within the first quarter of 2024 as a result of further revenue tax. The monetary establishment carried out properly in all areas within the first three months: deposits, investments and lending.
Okay&H Financial institution’s revenue after tax amounted to HUF 21.4 billion within the first quarter of 2024.
Okay&H Biztosító posted a lack of HUF 3.1 billion resulting from accounting for the additional revenue tax for your entire 12 months, however by way of its enterprise efficiency, it carried out properly, premium earnings elevated by 10 %, and all its enterprise divisions are continuously rising.
These outcomes embrace the destructive pre-tax impression of varied authorities measures (further revenue tax, different financial institution tax) of HUF 38 billion on the group stage.
The Financial institution’s mortgage portfolio elevated by 5 % within the first quarter of 2024 in comparison with the identical interval of the earlier 12 months, reaching HUF 2,872 billion. The quantity of recent loans granted within the first three months of 2024 amounted to HUF 134 billion. Company loans grew by 5 % in a single 12 months, and residential loans by 7 %.
Buyer deposits grew by 8 % on an annual foundation, their holdings elevated to HUF 3,791 billion, whereas the property managed within the funds elevated by 46 % in comparison with the identical interval of the earlier 12 months, reaching HUF 1,485 billion.
The bank-owned authorities bond portfolio exceeded HUF 1,000 billion, and its e book worth elevated by 6 % in comparison with the earlier 12 months. The Financial institution continues to have favorable liquidity indicators.
Okay&H Financial institution has greater than 650,000 digitally energetic prospects, two-thirds of recent retail account openings happen on-line, and greater than 500,000 customers have interacted with Kate, the primary voice-based digital monetary assistant.
In 2024, the Okay&H Group gained the title of “Hungary’s finest digital financial institution” for the second time. As well as, it obtained the Prime Employer award once more this 12 months for its measures aimed toward bettering the well-being and growth of workers.
Man Libot, CEO of the Okay&H Group, stated: “Within the first quarter of 2024, we as soon as once more supplied steady monetary efficiency. On this quarter, we have been profitable in all banking areas: in deposits, investments and lending, in each company and retail enterprise. Within the first quarter, the variety of our residential and SME prospects exceeded 962 thousand, which represents a 5 % improve in comparison with the primary quarter of 2023. The variety of prospects with common earnings transfers exceeded 605,000, which represents an annual improve of seven.2 %. Okay&H elevated the charges for on a regular basis banking providers to a lesser extent than final 12 months’s inflation. Account administration charges, for instance, confirmed single-digit development and rose by simply over 5 %, in comparison with final 12 months’s 17.4 % inflation. As well as, 63 % of retail prospects with a checking account bundle profit from numerous reductions, a few third of them pay half of the month-to-month account administration charge, and 1 / 4 of them don’t pay a month-to-month account administration charge in any respect. We prioritize the event of digital banking providers, together with cellular banking providers. In consequence, we now have greater than 650,000 digitally energetic prospects. For our pioneering position in revolutionary digital finance, we gained the “Greatest Digital Financial institution in Hungary” award in 2024 for the second 12 months in a row. Within the first quarter, our digital monetary assistant Kate’s HUF switch service by voice command was chosen as one of the best within the “Cash sending answer of the 12 months” class at Mastercard’s Financial institution of the Yr competitors. We’re additionally completely happy concerning the recognition of Privátbankár, as our fund supervisor gained 5 awards, together with first place for one of the best blended dynamic fund. We gained second place in two classes of the Joint Enterprise Affiliation’s “Corporations for the Future” award – the Greatest Ecosystem Constructing Firm and the Greatest Main ESG Values Supporting Firm Program. As well as, we obtained the Prime Employer Hungary award from the worldwide Prime Employers Institute this 12 months as properly. This certification is awarded to firms with confirmed human assets coverage excellence in areas reminiscent of recruitment, variety, work-life steadiness and a dedication to a greater working surroundings. This worldwide recognition proves that, regardless of exterior challenges, we not solely obtain excellent enterprise outcomes, but additionally present a working surroundings the place our workers can discover alternatives for growth no matter their skilled background, life scenario and ambitions.”
Monetary outcomes for the primary quarter of 2024
Okay&H Financial institution achieved a revenue after tax of HUF 21.4 billion. The Financial institution’s revenues elevated by 19 %, whereas working prices (excluding financial institution taxes) elevated by 16 % in comparison with the earlier 12 months as a result of impression of inflation on prices and the funding in new digital options. The full mortgage portfolio elevated by 5 % yearly to HUF 2,872 billion, and the inventory of recent company and retail loans reached HUF 134 billion within the first quarter of 2024.
“Company lending confirmed an annual development of 5 %, thereby surpassing the enlargement of the market as an entire. Thus, by the top of the primary quarter of 2024, our market share in company loans reached 10.2 % (in comparison with 9.8 % within the first quarter of 2023). We proceed to actively take part in state-supported financing schemes that facilitate the day-to-day operations and growth investments of companies: inside the framework of the Széchenyi Card program (together with already closed and ongoing packages) we concluded a contract totaling almost HUF 245 billion. At first of the 12 months, Eximbank Gábor Baross’s Reindustrialization Mortgage Program was supplemented with the Hitel Plusz scheme, of which we contracted greater than HUF 25 billion within the first quarter of 2024 out of the HUF 200 billion body quantity, giving us a 12.5 % market share. Our agricultural market share reached 27.5 % by the top of December 2023,” stated Attila Gombás, monetary supervisor of the Okay&H Group. “Our residential mortgage portfolio recorded a 7 % improve in comparison with the earlier 12 months. The quantity of recent mortgage mortgage contracts reached HUF 41 billion within the first quarter of 2024, i.e. we bought greater than 4 instances as many new mortgage loans as within the first quarter of 2023. Gross sales of the brand new Babaváró loans amounted to HUF 8 billion by the top of the primary quarter of 2024. Because the launch of the Okay&H inexperienced housing mortgage program, now we have disbursed greater than HUF 10 billion for the acquisition of recent energy-efficient properties, in addition to the acquisition and subsequent power effectivity modernization of used residences. So far as investments are involved, the property managed by our funds elevated by 46 % in comparison with the earlier 12 months, to HUF 1,485 billion. Wonderful returns and new cash flowing into funding funds each contributed to the expansion. Within the first quarter, internet gross sales reached a document HUF 86 billion. Within the first half of the quarter, bond and cash market funds have been the most well-liked amongst buyers. As in 2023, a shift in the direction of blended funds may be noticed. The inventory of buyer deposits reached HUF 3,791 billion, which represents an 8 % improve in comparison with the earlier 12 months. On the finish of the primary quarter of 2024, the e book worth of our authorities securities portfolio exceeded HUF 1,000 billion, which represents a 6 % improve in comparison with the earlier 12 months, whereas our liquidity indicators remained unchanged.”
Nik Vincke, CEO of Okay&H Biztosító, defined the next: “Within the first quarter of 2024, we booked your entire 12 months’s further revenue tax, due to this fact we recorded a HUF 3.1 billion loss. Within the non-life insurance coverage enterprise, premium earnings elevated by 10 % in comparison with the earlier 12 months, to HUF 22.0 billion, and on the similar time, all enterprise areas present sustained development. The life insurance coverage enterprise additionally delivered sturdy enterprise efficiency within the focused product traces and grew by 5 % year-on-year, primarily because of the unit-linked pension insurance coverage department. The success of the house insurance coverage marketing campaign is confirmed by the truth that many individuals up to date and renewed their earlier house insurance coverage contracts. The curiosity was big, extra folks took out house insurance coverage within the first three weeks of March this 12 months than in almost eight months final 12 months. On the finish of the primary quarter, our portfolio of house insurance coverage contracts exceeded the extent proven on the finish of the 12 months by 9 %. Consistent with Okay&H’s digitization efforts, the vast majority of those that modified their house insurance coverage firm selected cellular banking fee.”
Digital transformation and innovation
In 2024, the Okay&H Group gained the “Greatest Digital Financial institution of Hungary” award from the celebrated British monetary journal World Banking and Finance Evaluate for the second time in a row. Within the justification, the pioneering position performed by Okay&H within the discipline of revolutionary digital finance was highlighted, with specific consideration to the world-class and easy-to-use cellular financial institution, in addition to to the linked digital monetary assistant, Kate, who’s the primary within the sector to speak with voice and in Hungarian.
“Greater than 65 % of our prospects have already tried the assistance of Kate, our synthetic intelligence-based digital monetary assistant, which already supplies entry to greater than 200 capabilities. Since final September, greater than 500,000 customers have contacted Kate by way of our cellular financial institution,” stated Balázs Németh, head of innovation on the Okay&H Group. “Greater than 115,000 of our small and medium-sized enterprise prospects use digital channels every day. We are actually engaged on making Kate progressively out there to all our company prospects with our cellular banking software. Prospects who’ve already interacted with Kate on their retail account can rely on Kate to help them with their enterprise profile in the identical manner as they’d with retail providers.”
The variety of Okay&H’s digitally energetic prospects has already reached 650,000 (this implies a rise of 9 % year-on-year), and two-thirds of recent retail account openings happen on-line. 66 % of private mortgage contracts (92 % greater than the earlier 12 months) have been concluded digitally.
“We’re continuously increasing the scope of our digitally out there providers. We’ve launched the “Welcome to Okay&H” function, the place Kate personally guides new prospects by way of the preliminary steps. The greater than 60 providers out there in our cellular financial institution have additionally been elevated by yet one more: the lump sum funding. We’ve additionally lately launched the Okay&H cashback service, which is out there to anybody who makes a purchase order with a financial institution card at one of many listed retailers after registering for the service. Customers can obtain personalised affords tailor-made to their buying habits. The money refund possibility has already been activated by greater than 100,000 folks. With only a few faucets, our prospects can apply for a inexperienced card and proof of protection for his or her insurance coverage insurance policies in our cellular financial institution, and the paperwork are instantly out there to them there,” Balázs Németh added.
Sustainability
HVG compiled this 12 months’s checklist of one of the best firms by way of enterprise sustainability, on which Okay&H ranks sixteenth. The checklist contains the 40 Hungarian firms that carried out finest within the environmental, social and company governance (ESG) fields through the 12 months. Through the analysis, the candidates’ science-based local weather safety targets, emissions information, human rights coverage, variety targets and occupational well being and security system, in addition to their printed and audited sustainability reviews and code of ethics have been taken under consideration.
“It’s a nice honor and essential suggestions for us that our sustainability efforts are acknowledged on this manner. With a variety of banking merchandise, we assist our purchasers to make data-driven sustainability selections. As well as, you possibly can monitor your emissions and power consumption with our distinctive calculators. Our revolutionary digital developments guarantee handy and clean banking, and in addition assist our prospects to scale back their carbon footprint by decreasing the usage of paper and journey. We stay dedicated to increasing the vary of accountable investments. After final 12 months’s profitable 12 months, within the first quarter we already directed 50 % of the gross sales to certified, accountable funding funds. Our prospects’ consciousness of sustainability is confirmed by the truth that within the first three months of 2024, we signed contracts for greater than HUF 20 billion in new, inexperienced company loans,” stated Man Libot, CEO of the Okay&H Group.
