What will happen to Hungarian banks in 2026? – Bank executives speak out

Péter Csányi, Chief Executive Officer, OTP Bank

1. 2025 was another turbulent year for the banking sector. The Home Start Program gave new impetus to retail lending, while other government measures – freezing account fees, extending the interest rate cap, requiring ATM installation, raising the extra profit tax, raising the free cash withdrawal limit, etc. These unpredictable regulatory measures distort market mechanisms and thus cause significant indirect damage. Despite the turbulence and excessive taxation in Hungary, the international OTP Group has achieved and continues to achieve outstanding results, which is related to the fact that 70% of our profits now come from foreign subsidiaries. 2025 was also characterized by substantial organic growth, stable profitability, a strong capital position, and effective risk management. We were once again among the continent's leaders in the European Banking Authority's stress test, and in S&P Global Market Intelligence's European bank rankings based on financial performance, we finished second this year after taking first place in 2024. This feedback confirms that OTP is one of the most stable and successful banks not only in the region but also at the European level. The market has also recognized this: the more than 60% increase in OTP's share price this year is tangible proof of confidence and performance.

2. In 2026, the regulatory environment will remain a key issue. Uncertainty surrounding fee caps, interest rate caps, and the phasing out of the so-called extra profit tax, which was originally introduced for two years, as well as the localization of international fintech service providers' accounts in Hungary, will bring new challenges. In relation to the latter, the big question is what regulatory response will be given and how the principle of “same activity – same regulation” can be ensured. OTP aims to be a leading player in this environment as well: we are setting the pace in the competition with digital developments that not only represent technological innovation but also create real customer value. Our customers’ expectations are clear: simplicity, speed, security – and we add to this a personalized experience, the possibility of personal contact, and the power of increasingly advanced and extensive ecosystems offering a wider range of services. Reducing data-based fraud even further remains a sector-wide challenge, and OTP was very successful in this endeavor in 2025. I would very much like to see us further strengthen the international group in 2026 with another significant foreign bank acquisition or acquisitions.

3. The rise of artificial intelligence is not a trend, but a paradigm shift. At OTP, AI is not an end in itself, but a strategic pillar affecting all areas of our operations: from customer service to fraud prevention and risk management, it is actively present in our everyday lives. The challenge is to implement all this in a controlled, transparent, and customer-friendly manner, in compliance with European regulations and ethical expectations. The major breakthroughs of the future will be services that offer tangible benefits: real-time payment solutions, green financing schemes, personalized offers, and digital platforms that simplify customers' lives. OTP aims to be at the forefront of these developments. We put technological innovation at the service of customer experience by combining it in a unique way with high-quality personal service, which requires the continuous renewal and development of our branch network. We don't just react to change, we actively shape the future – through our ecosystems, our innovation and personal service capabilities, and the economies of scale that come from our regional presence.

Ádám Egerszegi, Deputy CEO, MBH Bank

1. Despite the economic challenges and geopolitical situation in Europe, the Hungarian banking sector remained stable and resilient in 2025. MBH Bank achieved strong financial results this year, while strengthening its market position and continuing to grow in several areas, including agricultural financing, leasing, factoring, and premium banking. We are proud that MBH Bank's public share sale transaction, which in terms of volume is the largest stock exchange transaction on the domestic market in the last 25 years, has recently been completed with outstanding interest from retail and institutional investors. Following the acquisition of Fundamenta, we also consider the acquisition of Otthon Centrum to be a great success, as it completes our home creation ecosystem. 2025 was a year of IT transformation at our bank: we are nearing the end of the integration of the systems inherited from our predecessor banks, we have started to roll out our cloud-based lending system, we were among the first in the sector to introduce DÁP [digital citizenship] identification on our online platforms, and we have developed various AI-based solutions.

2. Increased market competition, changing customer needs, and the growing presence of fintech players will continue to pose serious challenges for the banking sector in 2026. Maintaining competitiveness requires constant adaptation, in which providing fast and flexible customer service and rapid product development play a key role. With the advancement of digitalization and artificial intelligence, cybersecurity remains a priority in the banking sector, particularly in terms of the continuous development of defense systems and customer information. Following our recent successful share sale transaction, we will continue to strengthen our stock market presence in order to realize our vision of becoming the national champion.

3. On the retail side, further development of the home creation ecosystem – from simplifying the customer journey to digital pre-screening, leveraging synergies with Otthon Centrum – may play a decisive role next year. In the corporate segment, demand for subsidized schemes remains strong, so our priority is to offer the widest and fastest possible solutions in this area as well. In contrast to the recent period, we expect corporate investments and financing needs to increase in 2026. The full rollout of the cloud-based core banking platform and the development of AI-based customer support and advisory tools will be important milestones in digitalization. In addition, the wider adoption of online securities account opening and financial management solutions supporting SMEs may also open up new growth opportunities. We are already working intensively on these developments so that we can offer our customers even easier-to-use, faster, and more personalized services in 2026.

Peter Roebben, Chief Executive Officer, K&H Bank

1. 2025 fell far short of our growth expectations; it was again characterized by extreme uncertainty and unexpected situations. At the same time, K&H and the domestic banking sector in general once again demonstrated their resilience and achieved good profitability, further strengthening their capital position. Retail activity was stimulated by the Home Start program, while the corporate lending market remained weak. Unfortunately, regulatory costs continued to rise, making Hungary the most expensive market for banks in Europe from this perspective. Despite all this, 2025 was a successful year for K&H Bank: it was characterized by strong financial performance and a growing customer base, and we also received numerous awards. We successfully completed the IT development of our banking system. This means that we are on a solid IT footing for the coming years and can once again accelerate our investments in digital transformation. Kate, our AI-based digital financial assistant, is a good example of how significant the technological change is. She already offers around 400 functions and is able to perform them completely independently in 70% of cases, which means she is equivalent to the work of 26 employees.

2. I expect similar trends in 2026. The pace of digital transformation will continue to accelerate as competition from non-traditional players intensifies. Cyber security and fraud risks will require increasing attention. K&H will therefore invest even more and faster to remain at the forefront of technological development, provide excellent customer service, and be the primary financial partner for its customers. It is becoming increasingly challenging to find a balance between the existing business model and rapid technological transformation, and to decide where it is (not) worth investing. However, as a member of the strong KBC Group, we are in a favorable position to make these decisions. International political and macroeconomic uncertainty remains, but we expect the domestic economy to grow by 2.4% in terms of GDP, albeit with inflation remaining high at 4%.

3. Retail lending will once again be the main driver of growth next year, while we remain cautious about the business segment. The investment business will also continue to expand dynamically. We are prepared to place even greater emphasis on artificial intelligence tools in our internal processes. These efforts are not just about technology, but also require significant organizational restructuring. As customer behavior changes, we are increasingly rethinking our business model. Customers expect immediate, personalized service and continuous, proactive communication – all at the touch of a button. This means that K&H must go beyond traditional financial services and, in cooperation with other service providers, create an ecosystem that serves the customer's intentions. We plan to make significant progress in this area in the coming year.

Balázs Tóth, Chairman and CEO, UniCredit Bank

1. I consider the results achieved by the banking sector in 2025, despite the stagnating economy, to be extremely positive. This good performance is largely due to passive factors, such as the high savings rate of the population, liquidity inherited from previous years, and the level of the base interest rate. However, our sector prefers to actively lend to the economy rather than seek income through the passive channels mentioned above. UniCredit Bank also closed 2025 with a successful year: we significantly increased our customer base and achieved a significant share of newly disbursed mortgage loans, making us a key player in home lending and in helping Hungarian families achieve their home ownership goals. The latter was greatly aided by our successful partnerships. We made world-class investment funds available to our customers, who actively took advantage of these opportunities. A number of our customer experience improvements reached the finish line this year, which also supported our positions in the increasingly competitive sector.

2. In my opinion, macroeconomic volatility, the global and domestic economic situation, and geopolitical influences will pose challenges; whether there will be peace in Europe and when, at what pace companies will regain their appetite for investment, whether our clients' willingness to invest will increase in the longer term and in riskier products, and, on top of that, it will be an election year. Companies' adaptation to the global and domestic economic environment, the financing needs of the energy transition, and the transformation of supply chains all pose complex challenges, which we strive to address with flexible, innovative financing solutions. The continuous improvement of our service level, taking the customer experience to a new level in the digital space, and further strengthening our cybersecurity solutions are eternal goals in a competitive market. These now require particularly cost-effective solutions, as the sector's margins are under strong pressure as a result of intense and intensifying competition and special taxes.

3. We expect a strong year in the retail market in terms of both lending and investments, with services continuing to become more digitalized in all areas. In mortgage lending, we expect the credit market to continue to expand and competition to remain intense. In terms of digitalization, the spread of new methods of remote administration is particularly exciting, and we are preparing for this with new solutions. In corporate banking, risk management solutions will be key alongside traditional lending. The rise of AI in 2026 could be a catalyst for the digitalization of customer and risk management processes. In addition, digital document management, end-to-end lending solutions, and the expansion of ESG financing products could be key areas of innovation in 2026. Overall, the intensifying competition at the sector level is clear evidence that domestic banks are doing everything they can to provide their customers with the highest level of service, not only in terms of pricing, but also in terms of service quality and customer experience.

Radován Jelasity, Chairman and CEO, Erste Bank

3. The most important challenge is clearly maintaining competitiveness. The additional burdens placed on the banking sector—in particular, the doubling of the extra profit tax—result in a level of costs that non-bank players and cross-border fintech providers do not bear, thus distorting competition. In addition, digitalization and the emergence of artificial intelligence are taking the industry in a completely new direction: the question will no longer be how we use AI, but rather which some customers trust more, their bank advisor or a machine algorithm. The question is whether investments will finally get underway, as economic growth and the sustainability of lending depend on this.

3. We expect demand for retail lending to remain strong, especially for subsidized schemes such as Home Start, where Erste already has a prominent market share of over 25 percent. A turnaround in SME financing began in 2025, which may be followed by a further upturn in 2026. We also expect significant growth in asset management and investment services, where retail savings remain high. We are also making progress in digitalization and AI-based customer service, which not only means greater efficiency but also a better customer experience. However, we can only fully exploit these opportunities if the regulatory and tax environment is predictable and supportive.

György Zolnai, CEO, Raiffeisen Bank

1. I consider 2025 to be a stable and successful year overall, both for Raiffeisen Bank and for the banking sector as a whole. The sector as a whole was characterized by liquidity levels significantly exceeding regulatory requirements, a robust capital position, and strong profitability, which, although falling short of the record levels seen in 2024, can still be considered good. Raiffeisen Bank continued to perform at the forefront in this environment: we maintained our leading position (1st or 2nd place) in terms of return on equity and the cost/income ratio, which measures efficiency. Growth in 2025 was driven primarily by a revival in consumption and an expansion in retail lending. Mortgage lending played a key role in this, particularly the Otthon Start program from September onwards. Here, too, interest in Raiffeisen Bank's offer exceeded the market average; despite the high pressure, we process loan applications quickly and reliably. Our corporate business line also delivered exceptional results: in a barely growing lending market, we managed to achieve growth of over 10%! This was mainly due to the large corporate segment, but our very active participation in subsidized loan programs on the SME side also helped us achieve solid growth similar to that in the retail segment. Year after year, we are strengthening our presence in the digital space: this year, we are once again the first to introduce innovative solutions in the field of merchant payments in Hungary (qvik QR code and payment request payments). We offer market-leading simplicity in opening accounts via mobile and app with our paperless process, which is also available to businesses. Our activities are also confirmed on the customer side by the fact that Raiffeisen Bank continues to hold a top NPS position in both retail and corporate customer satisfaction, including non-bank service providers.

2. I believe that the biggest challenge facing us in the coming year will continue to be the reduction or elimination of state interventions that distort the functioning of the banking sector and EU directives that are far too restrictive in global comparison. A predictable and market-based operating environment is essential for lending to expand in a sustainable manner in the medium term and for banks to effectively fulfill their role as efficient financiers adapted to local economies. I am optimistic about the prospects for corporate lending: confidence indices related to German industry are showing an upward trend, while the upturn in infrastructure and heavy industry investments may also have a positive impact on domestic companies. This could be complemented by a further easing of the interest rate environment and the implementation of investments that companies have postponed due to the uncertainties of recent years. We continue to see significant reserves for deepening the credit market on the retail side. Greater financial awareness, a more predictable economic environment, and targeted support programs could together lay the foundation for further expansion.

3. On the retail side, mortgage lending – building on the Home Start program – and personal loans are likely to remain the main drivers of growth. Although we saw near-record volumes for these products in 2025, the support environment and demand trends continue to point in this direction. Another driver of growth could be corporate lending, particularly through the implementation of previously postponed investments, in which interest-subsidized loan programs will continue to play a key role, primarily in the small and medium-sized enterprise segment. We continue to see significant business opportunities in digitalization! We already have 6-8 internal pilot applications running for risk analysis, fraud prevention, and making our internal processes more efficient, and we are continuing to explore other areas where we can leverage the opportunities offered by generative AI in the near future. In addition to these traditional areas, Raiffeisen has launched three new business lines in the last year and a half: our POS acceptance network, which integrates cheaper domestic payment technology, has been growing rapidly for a year now, payment and lending products sold through non-bank channels have been launched, and we have put our leasing business on a growth path. We expect above-average growth in these three areas in 2026. In short, Raiffeisen Bank's goal remains unchanged: to support its retail and corporate customers as a stable, reliable, long-term partner even in a turbulent environment.

Pál Simák, Chairman and CEO, CIB Bank

1. This year was a milestone in CIB's history, as we closed a four-year strategic cycle with outstanding results. A major contributor to this was the fact that our expected profit for this year will be the highest in the bank's history. The profit growth this year is primarily attributable to lower impairment losses and provisions, while our revenues are at the previous year's level due to the stabilizing interest rate environment, the government's ban on adjusting transaction costs in line with inflation, strong price competition in retail loans at market interest rates, and margins under strong pressure in the corporate deposit market. In line with our growth strategy, we achieved stronger customer growth and further increased our market share in retail lending in terms of both new and existing portfolios. Retail loans grew at a double-digit rate, while on the corporate side, the change in the portfolio was in line with the rate of inflation. In terms of savings, we are seeing processes that are consistent with the sector as a whole: deposit growth is lower than lending growth. Beyond our professional successes, I think it is important to emphasize that over the past four years, including 2025, we have done a great deal to strengthen and further develop our corporate culture and community: the fact that CIB employees are "in the right place" is confirmed not only by those who work here, but also by numerous professional accolades.

2. The biggest challenge is maintaining profitability amid ever-increasing competition, but it should also be noted that a number of new government measures have been introduced recently that are having a negative impact on profitability. The most significant of these is the amendment to the rules on extra profit tax in an interest rate environment that no longer guarantees extra interest income, while increasing the tax payable by banks by 50%. The regulation affecting ATMs significantly increases costs and also reduces the predictability of the business environment. The extra volume generated by the Home Start Program showed again that the efficiency of lending processes can be improved even more. As government measures cause significant fluctuations in volume, a scalable, flexible solution must be found. This brings AI-based solutions to the fore, and I consider their appropriate implementation and production to be one of the main challenges in 2026.

3. We expect growth primarily from Home Start loans, but in 2026 CIB will also launch a new product on the savings market, with certificates to be issued with the help of our parent bank. Our mobile app is currently being revamped, and in addition to the new design, we are also preparing a number of new features for 2026, some of which will fill a long-awaited gap in the market, while others will be innovative solutions not yet widely available on the market, which will also be an important source of further growth for us. Various alternative payment solutions (payment requests, pay by link, qvik, etc.) offer significant potential (in terms of replacing card payments), and we expect a breakthrough in this area next year. Nevertheless, one of CIB's main goals for next year will continue to be to offer services and solutions that prove, both professionally and personally, that banking can indeed be enjoyable.

Éve Hegedüs, Chairman and CEO, Gránit Bank

1. Despite a high tax burden by international standards and slower-than-expected economic growth, the Hungarian banking system is expected to close 2025 on a positive note, although profitability will not reach the previous year's level. The banking sector's corporate lending performance was influenced by global market conditions, a decline in investment, and state-supported loan programs. In contrast to the corporate segment, the retail loan portfolio grew dynamically, primarily due to demand for unsecured loans, thanks to the Home Start and CSOK Plus programs. Credit institutions continued to play an active role in financing the budget this year through purchases of government securities. Gránit Bank performed excellently in 2025, as in previous years, achieving its highest ever after-tax profit in the first nine months, which was 14.4% higher than a year earlier. The growth momentum continued this year, with the bank and the banking group further increasing their market share in all target segments, expanding their end-to-end digitally available product range, and updating their mobile application every 2.5 weeks on average. The bank converted the nearly HUF 70 billion capital increase implemented last year into robust loan portfolio growth, with the loan portfolio expanding by 43% at the end of September compared to the same period last year, compared to the sector's 3.7% growth, all while maintaining outstanding cost efficiency (cost/total assets: 0.95%) and excellent portfolio quality (NPL: 0.19%).

2. The banking sector will continue to face challenges in 2026, given the extra bank tax and macroeconomic fundamentals. I believe that in the long term, banks that adapt quickly and effectively to change and see opportunities in challenges will be successful. This approach has been a key element of Gránit Bank's strategy from the outset, and we will continue to build on it in 2026. We will continue to focus on dynamic yet sustainable growth and innovation-based value creation. We intend to make digital solutions that have already proven themselves in the retail banking sector increasingly available to SMEs, while consciously expanding our international presence.

3. I am convinced that we cannot close the door on digitalization and artificial intelligence, but must instead use them to our competitive advantage. Customers prefer the highest possible UX, and better operational efficiency increases shareholder value. In 2025, we took a step forward with cutting-edge innovations: we introduced credit cards available in an end-to-end digital process, single-use virtual cards, and enabled bank card payments not only with mobile phones and smartwatches, but also with bracelets and rings. I expect qvik to gain ground in the field of payment services, which is why we have integrated qvik transactions into our FairPay system—we serve our customers in a unique way with mass QR code generation—and card acceptance. At Gránit Bank, continuous innovation is realized through a business and customer value-based approach, because developments only create value if they also provide tangible benefits for customers. Competition in the sector will remain strong in 2026, and Gránit Bank plans to introduce new, cutting-edge digital solutions in daily banking, investment services, and SME and unsecured retail lending. Building on the experience of the successful launch of cross-border retail services in Romania, we are exploring opportunities for further international expansion.

The answers are ranked based on the banks' consolidated balance sheet total at the end of 2024.

Cover photo (for illustration purposes only): Getty Images