K&H Bank, the Hungarian business arm of KBC, posted a consolidated loss of HUF 29.1bn in 2014. The banks says performance was heavily hit by the compensation it was forced to pay under the country’s borrowers relief legislation.
“Provisions K&H set aside for the compensation for using exchange rate margins when calculating repayments on FX loans and for making unilateral changes to loan contracts, added up to HUF 70.9bn. Excluding one-off factors, the bank would have had a net profit of HUF 28.2bn last year,” said CEO Hendrik Scheerlinck. K&H Bank posted an after-tax profit of HUF 18.5bn in 2013.
