Mbh Mortgage Bank Co. Plc. · BET:TAKAREKJZB
Mbh Mortgage Bank — Takarék Mortgage Bank — H2 2021 Earnings Presentation
28 slides from Mbh Mortgage Bank's earnings presentation, Apr 5, 2022
Slide 1: Takarék Mortgage Bank Co. Plc. Investor presentation 2021 H2
Takarék Mortgage Bank Co. Plc. Investor presentation 2021 H2 5th April, 2022
Slide 2: Purpose of presentation accompanying H2 2021 Flash Report
This presentation is to support the understanding of the underlying financial performance of Takarék Mortgage Bank. It serves as an accompanying presentation for the H2 2021 Flash 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 – Executive summary
Business and earnings KPIs – summary Executive summary ▪ Takarék Mortgage Bank had a successful financial year. In 2021, the Bank strengthened its second position in the Hungarian mortgage market. ▪ The profit before tax reached HUF 2.7 billion, an increase of HUF 792 million (+40.7% y/y) compared t
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, housing market, mortgage lending
Economy, housing market, mortgage lending – growth driven by consumption, Macroeconomy robust price hikes continue ROBUST GROWTH WITH RISING Economic growth, investments UNCERTAINTIES: following the previous year’s Housing market indicators (4-quarter rolling data) contraction the Hungarian economy
Slide 7: 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 7
Slide 8: Above 40% increase in pre-tax profit
Above 40% increase in pre-tax profit Profit before tax Y/Y development of profit before tax H/H development of profit before tax (HUF billion) (HUF billion) +40.7% 2.7 1.9 +42.9% 1.6 1.1 2020. 2021. H1 2021 H2 2021 ▪ Takarék Mortgage Bank’s profit before tax reached HUF 2.7 billion in 2021 (+HUF 792
Slide 9: HUF 2.7 billion pre-tax profit mainly due to net interest income
HUF 2.7 billion pre-tax profit mainly due to net interest income P&L The profit before tax of the Mortgage Bank reached Separate Statement of Profit or Loss (data in million HUF) 2020. 2021. 2021./2020. HUF 2.7 billion (+40.7% y/y): FY H1 H2 FY % ▪ Improvement was reached mainly due to a Operating i
Slide 10: An increase of 8.6% in total assets, mainly due to MNB liquidity stimulus measures
An increase of 8.6% in total assets, mainly due to MNB liquidity stimulus measures BS 2020. 2021. 2021./2020. Separate Statement of Financial Position (in HUF million) Y H1 Y % Cash, cash balances at central banks and other demand deposits 1 499 571 229 -84,72% The total assets of Takarék Mortgage B
Slide 11: 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 11
Slide 12: 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) +15.5% 331.5 4.4 MKB 287.1 4.4 17.5% Budapest Bank 26.2% Other 5.4% 327.1 282.6 2020. 2021. 50.9% Refinanced portfolio in EUR Takarékbank
Slide 13: Steady decline in the loan portfolio - in line with strategic decision
Steady decline in the loan portfolio - in line with strategic decision Customer loans Currency breakdown of own originated 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 decrease in 2021
Slide 14: 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 14
Slide 15: Mortgage bonds are dominant in the liability structure
Asset-Liability Mortgage bonds are dominant in the liability structure structure Interest earning assets Funding structure 1,3% 1,5% 47,2% 51,0% Interbank deposits 54,9% 59,9% Refinanced mortgage loans Own issued mortgage bonds Securities Interbank loans 43,3% 42,5% Own originated mortgage loans 45,
Slide 16: Strong secondary market activity
Strong secondary market activity Mortgage bond Mortgage bond issuance and outstanding amount ▪ Takarék Mortgage Bank (TMB) issued mortgage (HUF billion) bonds of HUF 24.5 billion in twelve public auctions in 2021. 350 MNB Jmortgage 40 ▪ HUFbn HUFbn bond purchase TMB issued its first green mortgage b
Slide 17: Strong second position with 20% share among domestic mortgage bond issuers
Strong second position with 20% share among domestic mortgage bond issuers Market share in the mortgage bond segment The Bank’s market share in the mortgage bond segment Mortgage banks’ market shares from mortgage bonds in (based on face value, HUF billion ) circulation (based on face value) -2.0% E
Slide 18: Mortgage bonds – issuance strategy
Mortgage bonds Mortgage bonds – issuance strategy issuance strategy Maturity structure of TMB mortgage bonds, March 24, 20222 ▪ TMB focused primarily on mortgage bond issues (no unsecured (in HUF million) bonds), while the key short-term strategic aim is the issuance of green mortgage bonds with an
Slide 19: HUF denominated and fixed coupon mortgage bonds determine portfolio
Outstanding mortgage HUF denominated and fixed coupon mortgage bonds determine portfolio bond portfolio Interest rate composition of outstanding mortgage FX composition of outstanding mortgage bonds (end- bonds (end-2021) 2021) 10% 1,8% 90% 98,2% Fixed rate Floating rate HUF EUR Covered ▪ S&P covere
Slide 20: Supplementary collateral decreased to zero since Q2 2021
Supplementary collateral decreased to zero since Q2 2021 Cover pool assets Cover pool composition (in HUF billion) MNB Mortgage Bond MNB Mortgage Bond MNB Mortgage Bond MNB Mortgage Bond ▪ TMB optimizes the size and structure of Purchase Programme I. Purchase Programme I. Purchase Programme II. Purc
Slide 21: 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 (end-2021) 2% 1,3% 0% 10% H2 2021 24% H2 2021 29% 2% H1 2021 H1 2021 71% 88% 76% 98,7% 98% Residential loans Commercial loans Substitute aseets Floating rate F
Slide 22: 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 22
Slide 23: Results of 2021 – green mortgage bond issuances
Successful green mortgage bond issuances in February 2022 ESG project • Preparation of the Green Covered Bond Framework on the basis of Green Bond Principles (GBP), with the assistance of a German technical advisor: Drees & Sommer. Results of 2021 • Selection of an independent Second Party Opinion p
Slide 24: ESG projects in focus
ESG projects in focus ESG project Projects and results in 2021 ▪ Start of an ESG project in cooperation with an external consultant. ▪ Elaboration on ESG strategy with ESG-based review of the business model. ▪ Independent ESG gap analysis and action plan in line with the MNB’s sustainability recomme
Slide 25: 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 25
Slide 26: Abbreviations
Abbreviations OPK Fakarék Mortgage Bank ROE, ROAE srongoge Bonk ROA, ROAA MBH_ Hungarian Bankholding Ltd. cIR NBH_ National Bank of Hungary KPI ESG_ Environment, Social, Governance KRI GBP Green Bond Principles GAE EEML Energy Efficient Mortgage Label bp BET Budapest Stock Exchange TAKAREKJELZALOGBA
Slide 27: 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 27
Slide 28: 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
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