MBH Mortgage Bank profits remain high, but there will be no dividend payment
The ownership structure of the MBH Group, formerly known as FHB Mortgage Bank and later as Takarék Mortgage Bank, looked like this at the end of the year:
As the report showed, the company achieved a profit after tax of HUF 6.597 billion last year, up from HUF 6.663 billion a year earlier, and
the board of directors is not recommending any dividend payment.
The company will hold its Annual General Meeting on 22 April 2025 at 14:00.
While profits declined slightly, the company's net interest income rose by 51% to HUF 12.8 billion, mainly due to a strong first half. However, the resulting increase in profit of HUF 4.312 billion was negatively offset by
- the result of the revaluation and derecognition of financial instruments, which was HUF 3.2 billion worse than a year earlier (- HUF 2.206 billion), and
- by the impairment losses and provisions recognised, which were HUF 1.4 billion worse than a year earlier (- HUF 535 million).
The mortgage bank's balance sheet total decreased by 1.6% to HUF 892 billion in 2024. The nominal value of the bank's outstanding mortgage bonds was HUF 364.9 billion at the end of 2024,
and the bank remains the second largest player in this market segment, they said. In 2024, the company held eight public mortgage bond auctions, including two green mortgage bond auctions, issuing mortgage bonds worth a total of HUF 59.6 billion. Thanks to the HUF 14.5 billion of green mortgage bonds issued in 2024, the bank's outstanding green mortgage bonds increased to HUF 48.6 billion by the end of last year. The bank's ESG Strategy includes a key objective to reach a 15% share of green mortgage bonds in the total outstanding mortgage bond portfolio by 2025, reaching 12.9% at the end of the third quarter of 2024. The company has also launched the issuance of mortgage bonds for the general public this year.
MBH Mortgage Bank uses the funds raised from the issue of mortgage bonds to provide refinancing loans to its partner banks. It currently has seven refinancing partners, of which MBH Bank has the largest loan portfolio.
The mortgage bank's statement struck an upbeat note: "MBH Mortgage Bank's annual results confirmed that we have maintained our strong market position despite the still complex geopolitical and macroeconomic environment. Our highly rated securities represent the highest market standards, while we support the development of the capital market with new solutions. In line with our strategic objectives, we will continue to strive to adapt flexibly to market changes and to innovate to strengthen the long-term growth of mortgage lending and the mortgage bond market," said CEO Gyula Nagy. The company's statement also highlighted that in 2024 MBH Mortgage Bank reached another milestone by being the first Hungarian credit institution to hold a mortgage bond exchange auction on the stock exchange, worth HUF 5.6 billion.
They also recall that in July 2024, MBH Mortgage Bank's mortgage bonds were ranked among the top-rated domestic securities by Moody's Ratings. The global rating agency has assigned an A1 rating, the upper-middle of the investment grade range, to the MBH Group's mortgage bond issuance programme. Moody's also announced that the long-term rating base (CRA) for MBH Mortgage Bank's mortgage bond programme is Baa3, also in the investment grade category, four notches above the Hungarian sovereign debt rating.
The mortgage bank's share price is currently 3.3% down on Friday's close.
