MBH Bank (MBHBANK) Q3 2025 earnings summary

Executive summary

• Adjusted profit after tax for 9M 2025 was HUF 156.1 bn, down 17.4% year-over-year, with accounting profit at HUF 116.7 bn, down 26.5% year-over-year.

• Adjusted ROE reached 18.1% for 9M 2025, with accounting ROE at 13.5% and cost-to-income ratio at 62.0%.

• High profitability and stable capital/liquidity ratios maintained in 3Q 2025, with total assets at HUF 12,280.5 bn (+0.4% y/y, -1.4% q/q), supported by deposit and loan growth.

• Profitability improved sequentially in 3Q 2025 due to increased FV results, lower operating costs, and risk cost release.

• Loan-to-deposit ratio at 78.6%, LCR at 147.5%, and NSFR at 125.6%, all well above regulatory minimums.

Financial highlights

• Gross operating income for 9M 2025 was HUF 408.1 bn, down 12.1% year-over-year.

• Adjusted net interest income for 9M 2025 was HUF 348.7 bn (-10.0% y/y), with net fee income at HUF 76.7 bn (+13.8% y/y).

• Operating expenses for 9M 2025 increased 11.9% year-over-year to HUF 253.0 bn, mainly due to IT standardization and inflationary pressures.

• Total risk cost was a release of HUF 29.3 bn in 9M 2025, with NPL coverage at 117.8%.

• Adjusted total comprehensive income for 9M 2025 was HUF 148.5 bn (-20.7% y/y).

Outlook and guidance

• Mid-term guidance targets ≥10% annual business volume growth (CAGR), ROE ≥15%, CIR <55%, TRM ≥4.5%, risk cost ratio ≤0.6%, and ~50% dividend payout ratio by 2030.

• The bank aims to pay dividends above regulatory requirements and a management buffer, balancing shareholder returns, organic growth, and M&A financing.

• Expectation of continued stable capital and liquidity positions, with focus on digitalization and product innovation.

• Anticipated slow stabilization of investments and cautious growth in industrial production from 2026.

• Inflation expected to average 4.5% in 2025, with central bank rate cuts likely only from mid-2026.