Mbh Bank Plc. Class A · BET:MKBBANK
Mbh Bank Plc. Class A — H1 2024 Earnings Presentation
33 slides from Mbh Bank Plc. Class A's earnings presentation, Aug 29, 2024
Slide 1: MBH Group 1H 2024 results
MBH Group 1H 2024 results Investor Presentation 29th August 2024
Slide 2: Executive summary
Executive summary 3 We kindly draw your attention to that in this presentation Business environment 5 MBH Bank’s underlying financial performance presented – if not stated otherwise – using adjusted financial figures (alternative performance measurement indicators – APM). Financial performance 8 For
Slide 3: Executive summary
Executive summary M3H BANK
Slide 4: More than HUF 139 bn adjusted profit in 1H 2024
More than HUF 139 bn adjusted profit in 1H 2024, with moderating net interest income levels Adjusted PAT (HUF bn), Adjusted ROE (%), Accounting ROE (%) 29.0% 18.8% 22.0% 20.3% 20.4% 142.1 139.0 30.4% 34.1% -2.2% ▪ Continued strong profitability in 2Q 23.9% 2024, with adjusted return on equity 22.0%
Slide 5: Business environment
Business environment M3H BANK
Slide 6: GDP slower than expected in 1H
GDP slower than expected in 1H GDP growth (y/y%) and employment Average inflation and wage growth* (y/y %) ▪ Real GDP unexpectedly fell 0.2% q/q in 2Q. Unadjusted GDP was up 1.5% in annual terms, due to poor industrial developments and 75,5% 76,0% investments. We cut our annual GDP growth 74,7% 75,0
Slide 7: Base rate fell to 7.00% by the end of June
Base rate fell to 7.00% by the end of June, decreasing further in 2H 2024 MNB base rate and 3M BUBOR (%) Regional base rates (%) ▪ The NBH has continued to cut interest rates in 14 16.3% 2Q from 8.25% in March to 7.00% by the end 15.2% 12 16.2% of June. Further rate easing is coming in 2H 13.0% 20
Slide 8: Financial performance
Financial performance M3H BANK
Slide 9: Accounting profits increased to HUF 108.8 bn
Accounting profits increased to HUF 108.8 bn; extra profit tax and banking tax are the adjustments on PAT in 1H 2024 Accounting profit after tax (HUF bn), ROE (%) 1H 2024 adjusted Profit after tax breakdown p/p and y/y changes (HUF bn) 20.3% 20.4% 59.6 0.0 0.0 59.7 2Q 12.7 139.0 17.5 108.8 108.8 84.
Slide 10: Gross income moderated in 2Q, margins decreased
MBH Group’s gross income moderated in 2Q, with some decrease in the margins driven by the change in the yield environment Gross Operating Income (GOI, HUF bn)1, TRM % Net interest income (HUF bn), NIM % 6.1% 6.1% 6.0% 6.3% 5.7% 5.5% 5.2% 5.3% 5.3% 5.5% 327.9 315.7 5.1% 4.9% 4.4% 4.7% 288.1 268.4 160
Slide 11: 3.1% increase in the loan book
3.1% p/p increase in the loan book (+17% y/y), quarterly growth driven by the increase in corporate loans Customer gross loan portfolio (HUF bn) Corporate1 5,643.1 5,816.5 19.0% 19.4% 19.1% 19.4% 5,170.6 +3.1% 18.6% 4,956.8 5,018.9 +4.9% 2,693.4 2,684.6 2,840.5 2,755.8 2,890.7 2Q 2023 3Q 2023 4Q 202
Slide 12: Growth in new lending volumes and market shares
Significant growth in new lending volumes and market shares of both mortgages and personal loans in 2Q 2024 Retail mortgage loans – Retail mortgage loans – Gross volume (HUF bn) and market share (%) New loan contracts (HUF bn) and market share (%) Retail mortgage loans: 24.1% 23.8% ▪ Retail mortgage
Slide 13: Deposit portfolios increased in 2Q
Deposit portfolios increased in 2Q, growth was supported by corporate volumes. Retail other savings volumes also continued to grow in the quarter Customer deposit portfolio (HUF bn) Corporate1 7,588.5 7,626.0 6,524.3 6,957.1 +0.5% 19.8% 19.9% 20.0% 19.8% 20.0% 6,270.9 +7.3% 3,648.4 3,990.0 4,036.1 4
Slide 14: Increase in costs p/p, C/I ratio up to 43%
Increase in costs p/p, C/I ratio up to 43% Operating expenses (HUF bn) Personnel expenses (HUF bn) 137.0 124.8 +9.8% 67.0 87.7 62.2 +7.7% 75.4 64.4 68.0 61.6 44.2 35.2 36.4 31.7 30.5 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 1H 2023 1H 2024 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 1H 2023 1H 2024 ▪ Ope
Slide 15: Improving portfolio quality and NPL coverage
Further improving portfolio quality and increasing NPL coverage rates in 2Q Total risk cost (HUF bn) Coverage (%) 153.7% 164.6% 170.6% 62.2 108.7% 110.3% 38.3 37.6 4.20% 8.7 7.4 16.1 0.66% 0.22% 0.78% 0.43% 1.57% 5.0% 4.6% 5.2% 5.1% 5.0% 0% -1.00% -2% -12.4 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 2Q
Slide 16: Stable capital position – 17.8% CET1
Stable capital position – 17.8% CET1 in 2Q 2024 Fundamenta Shareholders’ Equity (HUF bn) Capital Adequacy (%) impact -1.3%pp +86.2 +35.4 21.7% 22.1% 21.2% 1,109.6 22.1% 20.5% 1,074.2 19.9% 21.2% 1,023.4 27.6 -20.1 108.8 108.8 49.1 -30.1 20.1 19.7% 19.3% 16.4 20.3% 18.9% 19.1% 183.2 17.8% 17.6% 17.3%
Slide 17: MREL requirements and adequacy
MREL requirements and adequacy Regulatory MREL requirements and compliance: TREA (%) and TEM (%), 1H 2024 – Jan 2026 MREL new issuances (HUF bn) ~420 19.1% 22.6% 189 18.0% 15.5% 9.7% 135 29 5.9% 5.9% 5.9% 25 1H 2024 2024 - 2026 1H 2024 Jan - 25 Jan - 26 Act Expected MREL - TREA requirement (%) MREL
Slide 18: Stable liquidity ratios
Stable liquidity ratios Customer deposits (HUF bn) LTD (%) 79.0% 76.9% 74.3% 74.4% 76.3% 7,588.5 7,626.0 6,957.1 6,270.9 6,524.3 3,982.3 3,984.4 3,697.6 4,097.6 3,890.4 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3,606.2 3,641.6 2,380.5 2,826.7 2,859.5 LCR (%) 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 148
Slide 19: Additional information
Additional information
Slide 20: Ratings
Ratings In 2024, Moody's affirmed MBH Bank's investment- grade CRR rating of Baa2 with a stable outlook. Rating category Rating achieved Long- and short-term deposit ratings Baa3/P-3 Long- and short-term Counterparty Risk Ratings (CRRs) Baa2/P-2 Adjusted / Baseline Credit Assessment (BCA) ba3 Senior
Slide 21: ESG related updates in the quarter
ESG related updates in the quarter UN EP FI - Principles for Responsible Banking The first Report and Self-Assessment document was published in May 2024. 21
Slide 22: Awards and Recognitions
Awards and Recognitions Hungarian Banking Association HR Fest Golden Beehive Award JOBVERSE Job Fair Based on Zyntern.com's great entry-level research of 2024 MBH Bank is: dr. Tisza-Papp Ákos, Managing Director of Law and ▪ MBH Bank was one of the TOP3 most popular and Governance at MBH Bank success
Slide 23: Annexes
Annexes M3H BANK
Slide 24: Key ratios overview (adjusted)
Key ratios overview (adjusted) ROE % TRM % LCR % 34.1% 6,1% 6,3% 154.8% 30.4% 5,7% 5,5% 134.4% 141.4% 26.1% 5,2% 23.9% 22.0% 2Q 2023 1Q 2024 2Q 2024 1H 2023 1H 2024 2Q 2023 1Q 2024 2Q 2024 1H 2023 1H 2024 2Q 2023 1Q 2024 2Q 2024 C/I % NPL % ▪ Distinguished ROE reaching 26.1% in 1H 2024, driven by hi
Slide 25: Adjusted P&L
Adjusted P&L ADJUSTED P&L 2022 2023 2024 Y-Y (Y) Y/Y Q/Q (HUF bn) FY 2Q 1H FY 1Q 2Q 1H Net operating income 239.4 95.9 203.1 374.7 101.6 77.1 178.7 -12.0% -19.5% -24.0% Gross operating income 482.7 160.3 327.9 655.3 163.1 152.6 315.7 -3.7% -4.8% -6.5% Net interest income 421.8 138.1 288.1 569.6 138.
Slide 26: Balance sheet
Balance sheet STATEMENT OF BALANCE SHEET 2022 2023 2024 Y/Y Q/Q (HUF bn) 4Q 2Q 4Q 1Q 2Q Financial assets 1,511.0 1,234.1 1,516.9 1,612.0 1,372.5 11.2% -14.9% Trading portfolio 489.0 341.1 274.6 272.1 237.0 -30.5% -12.9% Securities 3,403.4 3,733.0 3,907.2 3,955.9 4,051.6 8.5% 2.4% Loans and advances
Slide 27: Adjusted KPIs
Adjusted KPIs KPIs based on adjusted PAT and Balance Sheet 2022 2023 2024 ∆%-p ∆%-p ∆%-p (HUF bn) FY 2Q 1H FY 1Q 2Q 1H Y-Y (Y) Y-Y Q-Q Profitability TRM - Total Revenue Margin 4.65% 6.14% 6.30% 6.16% 5.73% 5.22% 5.47% -0.83% -0.92% -0.51% NIM - Net Interest Margin 4.06% 5.29% 5.53% 5.36% 4.87% 4.44%
Slide 28: Unadjusted KPIs
Unadjusted KPIs KPIs based on unadjusted PAT 2022 2023 2024 ∆%-p ∆%-p ∆%-p (HUF bn) FY 2Q 1H FY 1Q 2Q 1H Y-Y (Y) Y-Y Q-Q Profitability TRM - Total Revenue Margin 4.58% 6.17% 6.40% 6.21% 5.73% 5.22% 5.47% -0.93% -0.96% -0.51% NIM - Net Interest Margin 4.06% 5.29% 5.53% 5.36% 4.87% 4.44% 4.65% -0.88%
Slide 29: Unadjusted and adjusted P&L
Unadjusted and adjusted P&L P&L 2Q 2024 Unadjusted Adjusted (HUF bn) P&L P&L Net operating income 77.1 77.1 Gross operating income 152.6 152.6 Net interest income 129.7 129.7 Net fee and commission income 26.3 26.3 Other operating income -3.4 -3.4 FX and FV results -4.1 -4.1 Other income 0.7 0.7 Ope
Slide 30: Changes in the regulatory environment and post-closing events
Changes in the regulatory environment and post-closing events # Changes in 2Q The international credit rating agency Standard & Poor’s affirmed its investment-grade rating of ‘BBB-/A-3’ on Hungarian government debt obligations in foreign and local currency in the 1 short and long term on April 26. T
Slide 31: Abbreviations
Abbreviations Secured loans Home Loans + Free-to-Use M ortgages Unsecured loans Personnel loans + Baby loans + Other consumer loans FVTOCI Fair value through OCI FVTPL Fair value through P&L FTE Full time equivalent NPL Non performing loans DPD90+ Days past due over 90 days ROE, ROAE Return on (aver
Slide 32: Disclaimer
Disclaimer BANK Me
Slide 33: Disclaimer
DISCLAIMER This presentation contains or may contain statements that are or may be deemed to be, “forward-looking statements” which are Investor relations prospective in nature. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. F