Granit Bank reported robust results for 2024 as lending grew by many times the sector average and total assets rose by 25% to HUF1.6 trillion (€4bn), the digital lender announced on April 9.  In line with its growth-focused strategy, the board has proposed retaining last year's profit, opting against a dividend payment at the April 30 AGM.

Net profit came in at HUF16.9bn, slightly down from 2023 earnings but ahead of internal targets. Consolidated after-tax profit was flat, at HUF21.2bn, but profitability remained strong, with return on average equity (ROAE) reaching 23%, comfortably above the sector’s 19.7% average.

Net interest income edged lower from HUF38.7bn to HUF31.9bn, which was offset by a surge in fee and commission income, which rose to HUF18.4bn from HUF7.7bn.

Granit’s expansion was broad-based. Deposits and government bond holdings jumped 26% to HUF1.24 trillion, while total credit exposure – including loans, bonds and guarantees – surged 36% to HUF772bn. Lending quality remained exemplary, with non-performing loans accounting for just 0.21% of the portfolio, well below the sector’s 2.4% average.

The bank’s capital position strengthened significantly, with equity up 84% to HUF141bn and a total capital adequacy ratio of 27% at year-end.

The number of client accounts rose by 56% to nearly 227,000, fuelled by digital channels: 99% of new retail accounts were opened remotely, and nearly one in four new Hungarian retail accounts in 2024 were opened at Granit.

Cost control remained a defining strength, with the adjusted cost-to-asset ratio at just 0.89% – around half the sector average. The bank’s digital-only model and streamlined operations continue to support its competitive edge.

Among last year's milestones, management highlighted the bank's IPO, the largest capital raise on the Budapest Stock Exchange in 25 years, raising HUF18b. The shares have since been added to the BUX index as of April.

The bank also expanded across borders, offering financial services in Romania to over 1,000 clients, and launched its AI-based chatbot to support 24/7 home loan applications.

Management said that thanks to a solid capital base and digital savvy, the bank is well-positioned to continue its expansion despite the risks.

Management will propose retaining 2024 earnings at the AGM convened for April 30. According to the bank’s pre-IPO prospectus, dividend payments are expected no earlier than the financial year 2026, with up to 25% of after-tax profit potentially distributed.