MBH Bank (MBHBANK) H1 2025 earnings summary

Executive summary

• Adjusted profit after tax reached HUF 92.9 bn in 1H 2025, down 33.2% year-over-year, with adjusted ROE at 16.4% and accounting ROE at 9.5%.

• Net profit for H1 2025 was HUF 53.5 billion, down from HUF 108.8 billion in H1 2024, with total comprehensive income at HUF 43.1 billion versus HUF 88.7 billion year-over-year.

• Earnings per share dropped to HUF 161 from HUF 325 year-over-year, reflecting lower profitability.

• Profitability remained high despite a decline, mainly due to increased operating costs and lower interest margins.

• Total adjusted comprehensive income for 1H 2025 was HUF 82.5 bn, a 30.6% decrease year-over-year.

Financial highlights

• Gross operating income for 1H 2025 was HUF 272.2 bn, down 16.5% year-over-year, driven by lower net interest income and other income.

• Net interest income for 2Q 2025 was HUF 114.9 bn, down 11.0% year-over-year; net interest margin fell to 3.6%.

• Net interest income decreased to HUF 236.0 billion from HUF 267.4 billion year-over-year.

• Net fee and commission income rose 6.9% year-over-year to HUF 48.9 bn in 1H 2025; net income from fees and commissions rose to HUF 97.3 billion from HUF 76.2 billion year-over-year.

• Operating expenses increased 19.8% year-over-year to HUF 166.2 bn in 1H 2025, with a cost-to-income ratio of 61.1%. Administrative and other operating expenses increased to HUF 257.7 billion from HUF 204.1 billion, driven by higher transactional levies and extraprofit tax.

• Allowances for expected credit losses and provisions improved, resulting in a positive HUF 5.4 billion versus a negative HUF 16.5 billion year-over-year.

• Capital adequacy ratio improved to 21.27% from 19.62% at year-end 2024.

Outlook and guidance

• Management is considering strategic options to increase free float on the stock exchange within 12 months.

• No rate cuts expected in 2025 due to persistent inflation and inflation expectations.

• The Home Start Program, launching in September, is expected to stimulate lending and real estate demand.

• The bank expects continued regulatory and macroeconomic challenges, including the extension of the interest rate cap on retail mortgages until year-end 2025.

• Ongoing focus on prudent risk management and capital preservation, with capital requirements met throughout the period.