Hungary MKB Bank's H1 profit drops 55%

The after-tax profit of MKB Bank dropped 55% year-on-year to HUF 8.2 billion in the first half, the bank's first earnings report released early Thursday shows. MKB Bank has been listed on the Budapest Stock Exchange since 17 June but no shares have been traded to date.
Hungary MKB Bank's H1 profit drops 55%

Net interest income climbed 6% to HUF 21.5 bn, but net revenue from commissions and fees dropped 17% to HUF 11.7 bn. MKB booked a HUF 6.7 bn loss on the "other income" line, compared to a HUF 12.3 bn gain in the base period. Earnings per share came to HUF 237.2 for the period. MKB had total assets of HUF 1,827.7 bn at the end of June, down 10% from twelve months earlier. Net stock of client loans fell 3% to HUF 924.8 bn and stock of deposits rose 7% to HUF 1,330.2 bn. In a conference call after the report was published, MKB CFO Csaba Gábor Fenyvesi attributed the big drop in H1 after-tax profit to a high base and restrictions on MKBʼs balance sheet because of European Union commitments related to the lenderʼs earlier bailout. He said H1 2018 was an "outlier" because of foreign exchange and yield volatility that had created a "significant distortion", causing after-tax profit to jump while other comprehensive income fell. In an investor presentation, MKB noted that adjusted total comprehensive income for H1 rose by HUF 11.1 bn from the base period. Fenyvesi said MKBʼs balance sheet restrictions had put the lender at a disadvantage compared to its competitors. He added that, at the same time, MKB had managed to reduce costs relative to total assets, boost its capital adequacy ratio and improve its portfolio quality. MKBʼs cost-to-total assets ratio stood at 1.95% in H1, while its capital adequacy ratio reached 19.3% and the rate of loans past 90 days due fell to 3.0%. Fenyvesi noted that MKBʼs private banking assets had reached HUF 605.7 bn in H1, giving it 11.7% market share.

More in Business

Tobias Adrian - IMF
December 10, 2019 12:00

Payments to be transformed completely - This is how the money of the future will look like

IMF top dogs uncover details

Elhunyt az internet egyik alapító atyja
December 10, 2019 08:26

Number of Internet subscriptions grow in Hungary

10.2 million Hungarians pay for the web

December 09, 2019 13:20

Hungarian banks at another level - They have started something completely different

Commerzbank Deputy-CEO on cenbank bond programme, automotive industry and CFO of the Year Award

December 09, 2019 10:53

Hungary's 4iG nets two more public contracts

A combined HUF 2 bn for health and training systems

December 09, 2019 08:57

J.P. Morgan raises target price for Hungary's OTP

Rating remains 'overweight'

December 09, 2019 08:55

These are the greatest risks for Hungary at the moment

IMF outlines risk scenarios