Mbh Mortgage Bank Co. Plc. · BET:TAKAREKJZB
Mbh Mortgage Bank — FY2023 Earnings Presentation
31 slides from Mbh Mortgage Bank's earnings presentation, Apr 24, 2024
Slide 1: MBH Mortgage Bank Co. Plc. 2023 Investor presentation
MBH Mortgage Bank Co. Plc. 2023 Investor presentation 24th of April 2024
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 24 Abbreviations 28 Disclaimer 30 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 an outstanding year in terms of its financial results and strengthened its second position in the Hungarian mortgage bank sector in 2023. Profit before tax reached HUF 7.39 billion in 2023: it increased by HUF 5.2 billion (+242.2% y/y) c
Slide 5: Business environment
Business environment (M3 MortcAcE BANK
Slide 6: Sudden halt in economic growth; slow pick-up in mortgage lending
Sudden halt in economic growth; slow pick-up in mortgage lending Economic growth, fixed investments (source of data: KSH) Mortgage lending (source of data: MNB) ECONOMY STAGNATED IN Q4 2023: Following solid growth in Q3, the economy SLOW RISE IN MORTGAGE LENDING: credit institutions made new mortgag
Slide 7: Inflation tapers out, signs of tentative growth in the housing market
Inflation tapers out, signs of tentative growth in the housing market Inflation, house prices (source of data: KSH, MNB) Housing market indicators (source of data: KSH, DH) INFLATION CLOSE TO TARGET: The annual rate of inflation moderated to below HOUSING MARKET IS FAR FROM ITS HEYDAY: While the num
Slide 8: Profit and Loss developments, Balance sheet
Profit and Loss developments, Balance sheet
Slide 9: HUF 7.4 billion pre-tax profit in 2023, despite the special tax on the extra profit
HUF 7.4 billion pre-tax profit in 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) +242.2% +48.8% 7.39 4.42 2.97 2.16 2022FY 2023FY 2023 H1 2023 H2 MBH Mortgage Bank’s profit before tax came at a
Slide 10: Pre-tax profit of HUF 7.4 billion, mainly due to net interest income
Pre-tax profit of HUF 7.4 billion, mainly due to net interest income Separate Statement of Profit or Loss 2022. 2023. 2023FY/ (in HUF million) FY H1 H2 FY 2022FY The profit before tax of the Mortgage Bank reached HUF 7.4 billion in 2023 despite the special tax on the extra profit Operating income, n
Slide 11: Total assets increased by 11.4% Y/Y
Total assets increased by 11.4% Y/Y Separate Statement of Financial Position 31.12. 30.06. 31.12. 31.12.2023/ 31.12.2023/ (in HUF million) 2022. 2023. 30.06.2023. 31.12.2022. Cash and cash equivalents 342 191 19,305 - - The total assets of MBH Mortgage Bank Financial assets measured at fair value th
Slide 12: Refinanced portfolio, Own originated loans
Refinanced portfolio, Own originated loans
Slide 13: Refinanced portfolio continued to rise year-on-year in 2023
Refinanced portfolio continued to rise year-on-year in 2023 Development of the refinanced portfolio Development of HUF refinanced portfolio by counterparty (HUF billion) +5.3% 374.6 355.8 3.6 4.5 MBH 96.5% 351.3 371.1 3.5% Other 31.12.2022 31.12.2023 31.12.2023 Refinanced portfolio in EUR Refinanced
Slide 14: Steady decline in the own originated gross loan portfolio
Steady decline in the own originated gross loan portfolio - in line with strategic decision Breakdown of own originated gross loans* (HUF billion) 68.0 The Bank discontinued granting own originated 4.6 loans in 2018, hence the stock of the remaining loans has been amortizing at an accelerating 53.
Slide 15: Mortgage bond issuance
Mortgage bond issuance (M3 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: Permanent issuer activity in both green and non-green mortgage bonds
Permanent issuer activity in both green and non-green mortgage bonds Mortgage bond issuance and outstanding amount (HUF billion) 450 40 HUFbn HUFmrd MNB CB purchase MNB Green CB Program II. purchase Program 400 35 350 30 300 25 250 20 200 15 150 10 100 5 50 0 0 "Mortgage bond gross issuance (non-gre
Slide 18: Stable second position among domestic mortgage bond issuers
Stable second position among domestic 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), 31.12.2023 18.9% 19.3% 18.5% +5.4% 367.2 379.7 387.2 31.12.202
Slide 19: Key player on the domestic mortgage bond market, innovation
Key player on the domestic mortgage bond market, innovation Dominant issuer in the domestic BSE Award: ‚Mortgage bond issuer of Innovative solutions in the mortgage mortgage bond market in 2023 the year in 2023’ lending Share of issuers of new mortgage bond issues in 2023, domestic market Erste MB 5
Slide 20: Frequent mortgage bond issuances on the domestic market
Frequent mortgage bond issuances on the domestic market Maturity structure of MBH MB mortgage bonds (April 11, 2024) (HUF million) 71 200 Total issued mortgage bond volume reached HUF 387.2 bn by end-2023, while the new issue amount was HUF 74.8 bn as a result of eight public auctions. 51 131 22 1
Slide 21: Share of green mortgage bonds increased in total issued volume in 2023
Share of green mortgage bonds increased in total issued volume in 2023 Interest rate composition of FX composition of outstanding mortgage bonds Share of Green Mortgage Bonds in total outstanding mortgage bonds (YE 2023) (YE 2023) mortgage bond volume (YE 2023) 0,0% 9% 14% 4% 2023Q4 2022Q4 86% 96% 1
Slide 22: Mortgage bond volume increased with an OC higher than 15%
Mortgage bond volume increased with an OC higher than 15% Cover pool composition and OC (in HUF billion) 450 20,0% Strict regulatory requirements 18,0% for the structure of cover pool 400 assets and over- 350 16,0% collateralisation 300 14,0% Minimum 2% of over- 12,0% collateralisation 250 10,0%
Slide 23: Cover pool assets: homogenous portfolio structure, low average LTV
Cover pool assets: homogenous portfolio structure, low average LTV FX composition of cover pool Asset types of cover pool Interest rate composition of cover pool (31.12.2023) LTV composition of loans in the cover pool Remaining maturity structure of cover pool (31.12.2023) loans (31.12.2023) 23
Slide 24: Green mortgage bond, ESG
Green mortgage bond, ESG iV MORTGAGE BANK
Slide 25: Green Covered Bond Framework review and Impact report
Green Covered Bond Framework review and Impact report In Q4 2023 MBH MB reviewed the existence of the funded Eligible Green Mortgage Loans and the allocation of Green Covered Bonds proceeds to the portfolio of Eligible Assets. Based on the revised Eligible Green Mortgage Loan Portfolio, MBH MB prepa
Slide 26: Green mortgage bonds
Successful green mortgage bond issuances and growing green cover asset pool • Green transparency reports: From the first quarter of 2022, MBH MB publishes different reports in relation to Green mortgage bonds outstanding mortgage bonds and cover assets for the same reporting day on quarterly basis (
Slide 27: 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 28: Abbreviations
Abbreviations (M3 MortcAcE BANK
Slide 29: 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 30: Disclaimer
Disclaimer (M3 MortcAcE BANK
Slide 31: 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