Mbh Mortgage Bank Co. Plc. · BET:TAKAREKJZB
Mbh Mortgage Bank — H1 2023 Earnings Presentation
29 slides from Mbh Mortgage Bank's earnings presentation, Aug 31, 2023
Slide 1: MBH Mortgage Bank Co. Plc. 2023 H1 Investor presentation
MBH Mortgage Bank Co. Plc. 2023 H1 Investor presentation 31th August 2023
Slide 2: Agenda
Business and earnings KPIs – summary 3 Business environment 5 Profit and Loss developments, Balance sheet 8 Refinanced portfolio, Own originated loans 12 Mortgage bond issuance 15 Green mortgage bond, ESG 23 Abbreviations 26 Disclaimer 28 This presentation is to support the understanding of the unde
Slide 3: Business and earnings KPIs – summary
Business and earnings KPIs – summary
Slide 4: Business and earnings KPIs – summary
Business and earnings KPIs – summary MBH Mortgage Bank had a successful half year and strengthened its second position in the Hungarian mortgage bank sector. Profit before tax was HUF 2.97 billion in H1 2023. It increased by HUF 2.0 billion (+203.5% y/y) compared to H1 2022, however. Total compr
Slide 5: Business environment
Business environment Maas] mortcace BANK
Slide 6: The economy is stuck in recession, mortgage lending is still weak
The economy is stuck in recession, mortgage lending is still weak Economic growth, fixed investments (source of data: KSH) Mortgage lending (source of data: MNB) LENDING DYNAMICS UP: from Q1’s bottom the volume of new mortgage ECONOMY STAYS IN RECESSION: Based on seasonally adjusted time series loan
Slide 7: Inflation has slowed down, housing market remains weak
Inflation has slowed down, housing market remains weak Inflation, house prices (source of data: KSH, MNB) Housing market indicators (source of data: KSH, DH) PROPERTY MARKET TO REMAIN WEAK IN THE SHORT RUN: Deterioration of INFLATION TURNS DOWNWARDS: The annual rate of inflation started to decline h
Slide 8: Profit and Loss developments, Balance sheet
Profit and Loss developments, Balance sheet
Slide 9: Close to HUF 3 billion pre-tax profit in H1 2023, despite the special tax
Close to HUF 3 billion pre-tax profit in H1 2023, despite the special tax on the extra profit Y/Y development of profit before tax H/H development of profit before tax (HUF billion) (HUF billion) +203.5% +151.5% 2.97 2.97 1.18 0.98 2022 H1 2023 H1 2022 H2 2023 H1 MBH Mortgage Bank’s profit before
Slide 10: Pre-tax profit of HUF 2.97 billion, mainly due to net interest income
Pre-tax profit of HUF 2.97 billion, mainly due to net interest income 2021. 2022. 2023. 2023H1/ 2023H1/ Separate Statement of Profit or Loss (in HUF million) The profit before tax of the Mortgage Bank reached FY H1 H2 FY H1 2022H1 2022H2 Operating income, net 5,439 3,186 2,956 6,142 4,186 31.4% 41.6
Slide 11: 1.3% y/y decrease in total assets in H1 2023
1.3% y/y decrease in total assets in H1 2023 31.12. 30.06. 31.12. 30.06. 30.06.2023/ 30.06.2023/ Separate Statement of Financial Position (in HUF million) 2021. 2022. 2023. 30.06.2022. 31.12.2022. Cash and cash equivalents 229 169 342 191 13.0% -44.2% Financial assets measured at fair value through
Slide 12: Refinanced portfolio, Own originated loans
Refinanced portfolio, Own originated loans
Slide 13: Refinanced portfolio continued to rise year-on-year
Refinanced portfolio continued to rise year-on-year Development of the refinanced portfolio Development of HUF refinanced portfolio by counterparty (HUF billion) +5.2% 367.2 348.9 3.8 4.7 344.2 363.4 30.06.2022 30.06.2023 30.06.2023 Refinanced portfolio in EUR Refinanced portfolio in HUF 5.2% y/y
Slide 14: Steady decline in the gross loan portfolio - in line with strategic decision
Steady decline in the gross loan portfolio - in line with strategic decision Currency breakdown of own originated gross loans (HUF billion) 68.0 The Bank discontinued granting own originated 4.6 62.7 loans in 2018, hence the stock of the remaining 4.5 loans has been amortizing at an accelerating 5
Slide 15: Mortgage bond issuance
Mortgage bond issuance Maas] mortcace BANK
Slide 16: European Premium Covered Bond Logo and Green Mortgage Label
European Premium Covered Bond Logo and Green Mortgage Label S&P mortgage bond rating: S&P Global Ratings (Frankfurt) announced on April 25, 2023 that it affirmed its ‘BBB’ credit ratings on MBH Mortgage Bank’s Hungarian mortgage covered bond program and related Rating issuances, while it removed t
Slide 17: Increasing outstanding mortgage bond volume amid strong issuer activity
Increasing outstanding mortgage bond volume amid strong issuer activity Mortgage bond issuance and outstanding amount (HUF billion) The total volume of mortgage bonds issued in the first 6 months of 2023 was HUF 41 billion (first 7 months: HUF 53 billion) – 5 transactions Out of which green mort
Slide 18: Stable second position among mortgage bond issuers
Stable second position among mortgage bond issuers The Bank’s market share in the mortgage bond market Mortgage banks’ share in the volume of outstanding (based on face value, HUF billion ) mortgage bonds* (based on face value), 30.06.2023 21.7% +3.4% 19.4% 18.9% 19.3% 18.1% 364.0 365.2 367.2 379.7
Slide 19: Mortgage bonds – issuance strategy
Mortgage bonds – issuance strategy Maturity structure of MBH MB mortgage bonds, 30 June, 2023 (in HUF million) 81,871 Active mortgage bond issuer – monthly/bimonthly covered bond auctions 71,200 MBH MB, as a mortgage bond issuer entity, plays an important role supporting MBH Group prudential man
Slide 20: Fixed coupon and HUF denominated mortgage bonds dominate
Fixed coupon and HUF denominated mortgage bonds dominate Interest rate composition of FX composition of outstanding mortgage bonds Share of Green Mortgage Bonds in total outstanding mortgage bonds (H1 2023) (H1 2023) MBH MB mortgage bond volume (H1 2023) 11% 0,0% 8% 4% Q2 2023 Q4 2022 89% 96% 100,0%
Slide 21: Over 10% overcollateralization amid increasing mortgage bond volume
Over 10% overcollateralization amid increasing mortgage bond volume Cover pool composition (in HUF billion) Amendment of domestic mortgage 450 bank act implemented EU covered 400 bond directive on July 8, 2022, that required mortgage banks to maintain 350 a 180-day liquidity buffer (liquid 300 a
Slide 22: Structure of the cover pool
Structure of the cover pool FX composition of cover pool Asset types of cover pool Interest rate composition of cover pool (31.12.2022) LTV composition of loans in the cover pool Remaining maturity structure of cover pool Homogenous cover asset pool, stable risk (30.06.2023, in HUF billion) loans (3
Slide 23: Green mortgage bond, ESG
Green mortgage bond, ESG iY MORTGAGE BANK
Slide 24: Green mortgage bonds
Successful green mortgage bond issuances and extending green cover asset pool • Green transparency reports : MBH MB publishes different reports in relation to outstanding mortgage bonds and cover Green mortgage bonds assets for the same reporting day on quarterly basis (MNB mortgage bond transparenc
Slide 25: Standalone ESG strategy and Sustainability report
Standalone ESG strategy and Sustainability report Sustainability report for 2022 Stakeholder and materiality assessment for 2022. Development of sustainability reporting according to the GRI standard: total carbon footprint (Scope 1, 2, 3) calculation in 2022 Publication of Standalone ESG st
Slide 26: Abbreviations
Abbreviations Maas] mortcace BANK
Slide 27: Abbreviations
M3H Abbreviations MORTGAGE BANK Bank, MBH MB. ROE, ROAE Return on average equity MBH Mortgage Bank - Mortgage Bank ROA, ROAA Relurn on average assels NBH, HNB National Bank of Hungary CIR Cost-lo-income ratio ESG Environment, Social, Governance KPI Key Performance Indicator GBP Green Bond Principles
Slide 28: Disclaimer
Disclaimer Maas] mortcace BANK
Slide 29: Disclaimer
Disclaimer This presentation contains statements that are or may be deemed to be, “forward-looking statements” which are prospective in nature. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Investor relations Forward-looking