MBH Bank (MBHBANK) H2 2024 earnings summary

Executive summary

• Total assets increased by 8.6% to HUF 11,951.7 billion, driven by the acquisition of Fundamenta and organic growth.

• Net profit after tax rose 34.2% year-over-year to HUF 158.8 billion, with equity up 5.4% to HUF 1,033.3 billion.

• The bank maintained strong capitalization, liquidity, and funding structure, with a capital adequacy ratio of 21.94%.

Financial highlights

• Net interest income was HUF 423.5 billion, down 2.6% from the previous year due to market interest rate changes.

• Net fee and commission income increased by 28% to HUF 133.1 billion, mainly from payment transactions.

• Operating expenses rose 16.1% to HUF 384.8 billion, driven by higher staff, IT costs, and transaction fees.

• Impairment and provisioning decreased by 51% to HUF 35.0 billion.

• Return on Equity (ROE) was 15.8%, and Return on Assets (ROA) reached 1.4%.

Outlook and guidance

• The bank targets further product and process consolidation, digital transformation, and efficiency improvements in 2025.

• Plans include increasing free float on the stock exchange, enhancing branch network efficiency, and developing the MBH Bank App.

• Economic growth in Hungary is expected to recover, with lending and fee income projected to improve, though net interest income may decline.