Mbh Mortgage Bank Co. Plc. · BET:TAKAREKJZB
Mbh Mortgage Bank — Takarék Mortgage Bank — FY2022 Earnings Presentation
29 slides from Mbh Mortgage Bank's earnings presentation, Apr 26, 2023
Slide 1: Takarék Mortgage Bank Co. Plc. Investor presentation
Takarék Mortgage Bank Co. Plc. Investor presentation 2022 26th April, 2023
Slide 2: Purpose of the presentation
This presentation is to support the understanding of the underlying financial performance of Takarék Mortgage Bank. It serves as an accompanying presentation for the year of 2022 Report. 2
Slide 3: Business and earnings KPIs – summary
Business and earnings KPIs – summary Business environment Profit and Loss developments, Balance sheet Refinanced portfolio, Own originated loans Mortgage bond issuance Green refinancing, ESG project Abbreviations Disclaimer 3
Slide 4: Business and earnings KPIs – summary: Executive summary
Business and earnings KPIs – summary Executive summary Takarék Mortgage Bank had a successful year and strengthened its second position in the Hungarian mortgage bank sector. Profit before tax was HUF 2.2 billion in 2022. It decreased by HUF 579 million (-21.2% y/y) compared to 2021, however, wi
Slide 5: Business environment
Business and earnings KPIs – summary Business environment Profit and Loss developments, Balance sheet Refinanced portfolio, Own originated loans Mortgage bond issuance Green refinancing, ESG project Abbreviations Disclaimer 5
Slide 6: Economy in slowdown, downturn in mortgage lending
Economy in slowdown, downturn in mortgage lending Macroeconomy Economic growth, fixed investments (source of data: KSH) Mortgage lending (source of data: MNB) MARKED SLOWDOWN IN MORTGAGE LENDING: as a result of the ECONOMY IN SLOWDOWN: Following a drop of 0.7% in Q3, GDP contracted tightening of sub
Slide 7: Rising inflationary pressures, housing market downturn
Rising inflationary pressures, housing market downturn Macroeconomy Inflation, house prices (source of data: KSH, MNB) 4-quarter rolling housing market indicators (source of data: KSH, DH) * Based on the MNB’s nominal house price indices * Based on the estimation of the number of transactions by Dun
Slide 8: Profit and Loss developments, Balance sheet
Business and earnings KPIs – summary Business environment Profit and Loss developments, Balance sheet Refinanced portfolio, Own originated loans Mortgage bond issuance Green refinancing, ESG project Abbreviations Disclaimer 8
Slide 9: Over HUF 2 billion pre-tax profit in 2022, despite the special tax on the extra profit
Over HUF 2 billion pre-tax profit in 2022, despite the special tax on the extra profit Profit before tax Y/Y development of profit before tax H/H development of profit before tax (HUF billion) (HUF billion) -21.2% 2.7 2.2 +20.7% 1.2 1.0 2021Y 2022Y H1 2022 H1 2022 Takarék Mortgage Bank’s profit be
Slide 10: Pre-tax profit of HUF 2.2 billion, mainly due to net interest income
Pre-tax profit of HUF 2.2 billion, mainly due to net interest income P&L 2021. 2022. 2022Y/ Separate Statement of Profit or Loss (in HUF million) FY H1 H2 FY 2021Y The profit before tax of the Mortgage Bank Operating income, net 5,439 3,186 2,956 6,142 12.9% reached HUF 2.2 billion despite the speci
Slide 11: 22.4% increase in total assets in 2022
22.4% increase in total assets in 2022 BS 31.12. 30.06 31.12. 31.12.2022/ Separate Statement of Financial Position (in HUF million) 2021. 2022. 31.12.2021. Cash and cash equivalents 229 169 342 49.3% Financial assets measured at fair value through profit or loss 12,146 12,535 11,854 -2.4% The total
Slide 12: Refinanced portfolio, Own originated loans
Business and earnings KPIs – summary Business environment Profit and Loss developments, Balance sheet Refinanced portfolio, Own originated loans Mortgage bond issuance Green refinancing, ESG project Abbreviations Disclaimer 12
Slide 13: Double-digit growth in the refinanced portfolio
Refinanced Double-digit growth in the refinanced portfolio portfolio Development of the refinanced portfolio Development of HUF refinanced portfolio (HUF billion) +10.9% 367.7 331.5 4.5 4.4 363.3 327.1 31.12.2021 31.12.2022 31.12.2022 Refinanced portfolio in EUR Refinanced portfolio in HUF 10.9% 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 Customer loans Currency breakdown of own originated gross loans (HUF billion) The Bank discontinued granting own originated loans in 2018, the stock of the remaining loans is to be amortized as scheduled. The rate of decr
Slide 15: Mortgage bond issuance
Business and earnings KPIs – summary Business environment Profit and Loss developments, Balance sheet Refinanced portfolio, Own originated loans Mortgage bond issuance Green refinancing, ESG project Abbreviations Disclaimer 15
Slide 16: European Premium Covered Bond Logo and Green Mortgage Label
European Premium Covered Bond Logo and Green Mortgage Label Mortgage bond S&P covered bond rating: BBB positive CreditWatch. The covered bonds could be eligible for collateral-based Rating uplift based on further analysis above the current rating, which reflects the covered bonds’ jurisdiction- su
Slide 17: Increasing share of green covered bonds in the outstanding mortgage bond portfolio
Increasing share of green covered bonds in the outstanding mortgage bond portfolio Mortgage bond Mortgage bond issuance and outstanding amount Overall demand for mortgage bonds at the primary (HUF billion) market significantly narrowed due to high yield volatility amid higher risk in H2 2022. TM
Slide 18: Stable second position among mortgage bond issuers
Stable second position among mortgage bond issuers Share in the mortgage bond market The Bank’s market share in the mortgage bond market Mortgage banks’ share in the volume of outstanding mortgage (based on face value, HUF billion ) bonds* (based on face value), December 31, 2022 +0.9% 20.8% 21.7% 2
Slide 19: Mortgage bonds – issuance strategy
Mortgage bonds Mortgage bonds – issuance strategy issuance strategy Maturity structure of TMB mortgage bonds, April 18, 2023 TMB intends to focus primarily on mortgage bond issues (no (in HUF million) unsecured bonds), while the key short-term strategic aim is still the issuance of green mortgage
Slide 20: Fixed coupon and HUF denominated mortgage bonds dominate
Outstanding mortgage Fixed coupon and HUF denominated mortgage bonds dominate bond portfolio Interest rate composition of outstanding mortgage FX composition of outstanding mortgage bonds (2022Y) bonds (2022Y) 20
Slide 21: Over 10% overcollateralization amid increasing mortgage bond volume
Over 10% overcollateralization amid increasing mortgage bond volume Cover pool assets Cover pool composition (in HUF billion) Implementation of European Covered Bond Directive in Amendment of local mortgage bank domestic Mortgage Bank Act requires mortgage banks to act implemented EU covered bond
Slide 22: Structure of the cover pool
Structure of the cover pool Cover pool assets 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 Homogenous cover asset pool, stable risk profile pool (31.12.2022, in HUF billion) The share of residentia
Slide 23: Green refinancing, ESG project
Business and earnings KPIs – summary Business environment Profit and Loss developments, Balance sheet Refinanced portfolio, Own originated loans Mortgage bond issuance Green refinancing, ESG project Abbreviations Disclaimer 23
Slide 24: Successful green mortgage bond issuances and extending green cover asset pool in 2022
Successful green mortgage bond issuances and extending green cover asset ESG project pool in 2022 • Transparency reporting in relation to green finances: TMB published several reports in relation to outstanding mortgage Green mortgage bonds and cover assets for the same reporting day first time in i
Slide 25: Standalone ESG strategy and Sustainability report
Standalone ESG strategy and Sustainability report ESG Projects and results in 2022 Publication of Standalone ESG strategy and Sustainability report (2021) in September 2022. Quarterly monitoring of KPIs defined in ESG strategy and Sustainability report. Preparation for the development of susta
Slide 26: Abbreviations
Business and earnings KPIs – summary Business environment Profit and Loss developments, Balance sheet Refinanced portfolio, Own originated loans Mortgage bond issuance Green refinancing, ESG project Abbreviations Disclaimer 26
Slide 27: Abbreviations
Abbreviations Bank ROE, ROAE Return on average equity Mortgage Bank Takarék Mortgage Bank ROA, ROAA Return on average assets TMB CIR Cost-to-income ratio MBH Hungarian Bankholding Ltd. KPI Key Performance Indicator NBH National Bank of Hungary KRI Key Risk Indicator ESG Environment, Social, Governan
Slide 28: Disclaimer
Business and earnings KPIs – summary Business environment Profit and Loss developments, Balance sheet Refinanced portfolio, Own originated loans Mortgage bond issuance Green refinancing, ESG project Abbreviations Disclaimer 28
Slide 29: Disclaimer
Disclaimer This presentation contains statements that are or may be deemed to be, “forward-looking statements” which are prospective in Investor relations nature. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Forward-looking