Business 29 September 2023, 2:15pm

MBH Bank buys bank in Hungary

Portfolio

The acquisition of a direct majority stake in savings bank Duna Takarék Bank Zrt. has been completed, the Győr-based financial institution will now be owned by MBH Bank Nyrt. MBH announced on the website of the Budapest Stock Exchange that it now directly owns 98.46% of the shares of the bank. The transaction, approved by National Bank of Hungary (MNB) on 15 September, was successfully completed today.

According to its 2022 annual report, Duna Takarék Bank, which came into existence as it was left out of the previous merger of savings cooperatives,

closed last year with an after-tax profit of HUF 2.6 billion, a balance sheet total of HUF 128.3 billion, equity of HUF 7.2 billion and 14 branches.

As of now Duna Takarék Bank will continue to operate as part of the MBH Group, but independently, under its own brand name.

Hungarian Bankholding (MBH) was formed by the merger of MKB Bank, Budapest Bank, and Takarékbank. It is owned (about 50%) by Lőrinc Mészáros, the country's richest person and childhood friend of Prime Minister Viktor Orbán, formerly a gas-fitter in Orbán's hometown Felcsút. The state has a minority ownership of slightly over 30%. Beatrix Mészáros, the daughter of Lőrinc Mészáros, is Deputy CEO in charge of the subsidiaries of the bank holding.

The 'superbank' posted HUF 165.5 billion pre-tax profit in the first half of 2023, 60.7% more than in H1 2022. Its after-tax profit amounted to HUF 142.1 billion, up 50.2% yr/yr, even though it paid HUF 66.8 billion in bank tax and the windfall tax (or 'extra profit tax' as the government refers to it).

MBH's total assets grew by 3% to HUF 10,487 billion and its equity jumped 22.7% to HUF 893 bn. The bank's adjusted return on equity (ROE) came in at an outstanding 33.8% in January-June.

"Duna Takarék Bank's particularly strong deposit and loan portfolio and its existing branch network fit well into MBH Bank's growth strategy. Thanks to this transaction, our market presence and position will be further strengthened, but the winners of the transaction are primarily Duna Takarék Bank's customers, who will indirectly become partners of a stable, domestically owned bank and for whom more MBH Bank products and services will gradually become available in the future," said Ádám Egerszegi, Deputy CEO of MBH Bank responsible for transformation and operations.

Customers of Duna Takarék Bank have no further action to take regarding the change.