Mbh Mortgage Bank Co. Plc. · BET:TAKAREKJZB
Mbh Mortgage Bank — H1 2024 Earnings Presentation
32 slides from Mbh Mortgage Bank's earnings presentation, Aug 30, 2024
Slide 1: MBH Mortgage Bank Co. Plc. 2024 H1 Investor presentation
MBH Mortgage Bank Co. Plc. 2024 H1 Investor presentation 30th of August 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 25 Abbreviations 29 Disclaimer 31 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 half year in terms of its financial results and strengthened its second position in the Hungarian mortgage bank sector in H1 2024. ▪ Profit before tax reached HUF 4.2 billion in H1 2024: it increased by HUF 1.2 billion (+40.
Slide 5: Business environment
Business environment M3 Morteace BANK
Slide 6: Unstable growth performance; strong growth in mortgage lending
Unstable growth performance; strong growth in mortgage lending Mortgage lending Economic growth, fixed investments (source of data: MNB) (source of data: KSH) DISAPPOINTING ECONOMIC GROWTH IN Q2: following unexpectedly solid growth RAPID RISE IN MORTGAGE LENDING: credit institutions made new mortgag
Slide 7: Inflation within tolerance band; growth in the housing market
Inflation within tolerance band; growth in the housing market Inflation, house prices Housing market indicators (source of data: KSH, MNB) (source of data: KSH, DH) ▪ INFLATION WITHIN THE CENTRAL BANK’S TOLERANCE BAND: the annual ▪ INCREASING TRANSACTION FIGURES IN THE HOUSING MARKET: although rate
Slide 8: Profit and Loss developments, Balance sheet
Profit and Loss developments, Balance sheet
Slide 9: Close to HUF 4.2 billion pre-tax profit in H1 2024, despite the special tax
Close to HUF 4.2 billion pre-tax profit in H1 2024, 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) +40.7% -5.4% 4.2 4.4 4.2 3.0 2023 H1 2024 H1 2023 H2 2024 H1 ▪ MBH Mortgage Bank’s profit before tax c
Slide 10: Pre-tax profit of HUF 4.2 billion, mainly due to net interest income
Pre-tax profit of HUF 4.2 billion, mainly due to net interest income Separate Statement of Profit or Loss 2023. 2024. 2024H1/ 2024H1/ (in HUF million) H1 H2 FY H1 2023H1 2023H2 The profit before tax of the Mortgage Bank reached HUF Operating income, net 4,186 5,056 9,242 6,064 44.9% 19.9% 4.2 billio
Slide 11: Total assets increased by 17.1% Y/Y
Total assets increased by 17.1% Y/Y Separate Statement of Financial Position 30.06. 31.12. 30.06. 30.06.2024/ 30.06.2024/ (in HUF million) 2023. 2024. 30.06.2023. 31.12.2023. The total assets of MBH Mortgage Bank reached Cash and cash equivalents 191 19,305 3,686 - -80.9% HUF 876 billion at the end
Slide 12: Refinanced portfolio, Own originated loans
Refinanced portfolio, Own originated loans
Slide 13: Refinanced portfolio rose both annual and half-year basis
Refinanced portfolio rose both annual and half-year basis, MBH Bank is the dominant refinancing partner Development of the refinanced portfolio Development of HUF refinanced portfolio (HUF billion) by counterparty +7.3% 393.3 366.4 3.3 3.8 MBH 96.8% 390.0 362.6 3.2% Other 30.06.2023 30.06.2024 30.06
Slide 14: Steady decline in the own originated gross loan portfolio
Steady decline in the own originated gross loan portfolio - in line with the business strategy 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 53.5 loans has been amortizing at an accelera
Slide 15: Mortgage bond issuance
Mortgage bond issuance M3 Morteace BANK
Slide 16: MBH MB's covered bonds are rated by S&P and Moody's
MBH MB’s covered bonds are rated by S&P and Moody’s Standard and Poors rates MBH MB covered bonds since 2018., while Moody’s published its new covered bond rating in July 2024 S&P Global Ratings (Frankfurt) affirmed its rating for MBH MB’s covered bond programme and the issued mortgage bonds at ‚BBB
Slide 17: MBH MB mortgage bonds on international stages: European Energy Efficient Mortgage Label
MBH MB mortgage bonds on international stages: European Energy Efficient Mortgage Label By joining the EEML (February 21, 2022) MBH Mortgage Bank undertakes to refinance its partners’ residential and project mortgage loans with the consideration of energy efficiency, while it also guarantees complia
Slide 18: 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 HUFmrd HUFbn MNB CB purchase MNB Green CB Program II. purchase Program ▪ Outstanding amount of MBH 400 MB mortgage bonds stood at 35 HUF 350.4 bn at the end of June
Slide 19: 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), 30.06.2024 18.9% 19.3% 18.5% 16.8% -9.5% 367.2 379.7 387.2 350
Slide 20: Key player on the domestic mortgage bond market, innovation
Key player on the domestic mortgage bond market, innovation Share of issuers of new BSE Award: ‚Mortgage bond Innovative solutions in the mortgage bond issues in H1 2024 issuer of the year in 2023’ mortgage lending AVM Erste MB 12,8% MBH MB 17,6% UC MB MBH Mortgage Bank has been awarded AVM (automat
Slide 21: Covered bond maturity structure
Covered bond maturity structure Maturity structure of MBH MB mortgage bonds (July 25, 2024) (HUF million) 71,200 ▪ Re-purchase/switch auctions ahead of scheduled maturities serve as tools for decreasing maturity concentration 51,131 46,585 ▪ 5Y or longer fixed coupon mortgage bonds play a key role i
Slide 22: Share of green mortgage bonds increased further in total issued volume in Q2 2024
Share of green mortgage bonds increased further in total issued volume in Q2 2024 Interest rate composition of FX composition of outstanding Share of Green Mortgage Bond outstanding mortgage bonds mortgage bonds (Q2 2024) in total mortgage bond volume (Q2 2024) (Q2 2024) 0,0% 16% 84% 100,0% Fixed ra
Slide 23: OC moved above 20% on the back of temporarily lower mortgage bond outstanding
OC moved above 20% on the back of temporarily lower mortgage bond outstanding Cover pool composition and OC (in HUF billion) Strict regulatory requirements for the structure of cover pool 450 30% assets and over- 400 collateralisation 25% 350 ▪ Minimum 2% of over- 300 20% collateralisation 250 ▪ 180
Slide 24: Cover pool assets: homogenous portfolio structure, low average LTV
Cover pool assets: homogenous portfolio structure, low average LTV Asset types of cover pool Interest rate composition of FX composition of cover pool cover pool (Q2 2024) 0,8% 99,2% HUF Other LTV composition of loans Remaining maturity structure in the cover pool (Q2 2024) of cover pool loans (Q2 2
Slide 25: Green mortgage bond, ESG
Green mortgage bond, ESG iy MORTGAGE BANK
Slide 26: MBH MB and green transparency
MBH MB and green transparency Green transparency reports: From the first quarter of 2022, MBH MB publishes different reports in relation to outstanding mortgage bonds and cover assets for the same reporting day on quarterly basis (MNB mortgage bond transparency report, Green mortgage bond allocation
Slide 27: Share of eligible mortgage loans in the cover pool has exceeded 20%
Share of eligible mortgage loans in the cover pool has exceeded 20% Green mortgage bonds In H1 2024 MBH MB successfully continued its green mortgage bond Green mortgage bond outstanding amount and green cover asset pool issuance activity. It resulted the outstanding volume of MBH MB green 100 HUF bi
Slide 28: Standalone ESG strategy and Sustainability report
Standalone ESG strategy and Sustainability report Sustainability report for 2023 ▪ Materiality assessment: Review of the results during the 2023 reporting period. ▪ Development of sustainability reporting according to the GRI standard: ▪ total carbon footprint (Scope 1, 2, 3) calculation and monitor
Slide 29: Abbreviations
Abbreviations M3 Morteace BANK
Slide 30: 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 31: Disclaimer
Disclaimer M3 Morteace BANK
Slide 32: 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