Green lending: sustainable financing gaining momentum

By: Trademagazin Date: 2025. 12. 23. 11:01

🎧 Hallgasd a cikket: Nyelv: Sebesség: 1.05×

According to the latest data from the Hungarian National Bank, the volume of sustainable financing in Hungary has continued to grow: the corporate and municipal green loan portfolio exceeded HUF 1,143 billion in the third quarter of 2025, which represents an increase of more than HUF 156 billion this year, while the retail capital requirement discount program expanded by nearly HUF 30 billion, reaching an exposure of HUF 271 billion. K&H is one of the leaders in green lending: with its loan portfolio of HUF 247 billion, it achieved a 24 percent share.

According to the central bank, the corporate green loan portfolio was HUF 821 billion at the end of the third quarter of 2025, which was concentrated in two main areas: HUF 473 billion for renewable energy projects and HUF 232 billion for real estate financing.

K&H plays a decisive role in this growth. The bank increased its green loan portfolio to HUF 247 billion, achieving a 24 percent share of the retail and corporate green loan market. The volume of green home loans was HUF 71 billion in the third quarter of 2025.

In addition to the green financing portfolio, the financial institution also reached an important milestone in the field of responsible investments. Assets invested in investment funds that take social and environmental aspects into account approached HUF 1,100 billion by the end of the third quarter of 2025. The popularity of ESG funds is well demonstrated by the fact that these funds accounted for nearly 70% of new sales in the third quarter, and a significant proportion of clients consciously make choices based on sustainability considerations.

“Sustainability is not a separate project for us, but an integral part of our business operations. We believe that in the fight against climate change, banks must simultaneously ensure the transformation of the economic structure, the management of risks and the formation of attitudes. Our sustainability efforts were also recognized by the industry this year: we won the Portfolio Green Awards 2025 large corporate category award and the Euromoney Best Sustainability Bank award,”

said Levente Suba, Head of Sustainability at K&H Group.

The central bank’s green capital requirement allowance (TKK) program continues to serve as a significant incentive for domestic financial players. The program aims to enable the financing of green projects with lower capital requirements and for credit institutions to actively support the green transition.