Mbh Mortgage Bank Co. Plc. · BET:TAKAREKJZB
Mbh Mortgage Bank — FY2024 Earnings Presentation
33 slides from Mbh Mortgage Bank's earnings presentation, Apr 22, 2025
Slide 1: MBH Mortgage Bank Co. Plc. 2024 Investor presentation
MBH Mortgage Bank Co. Plc. 2024 Investor presentation 22nd April 2025
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 26 Abbreviations 30 Disclaimer 32 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 FY 2024. ▪ Profit before tax reached HUF 7.2 billion in FY 2024: although it decreased by HUF 0.2 billion (
Slide 5: Business environment
Business environment M3 Morteace BANK
Slide 6: Economy is out of recession – mortgage loan activity remains strong
Economy is out of recession – mortgage loan activity remains strong Economic growth, fixed investments Mortgage-backed loans (source of data: KSH) (source of data: MNB) ECONOMY QUITS RECESSION PHASE IN Q4: following two consecutive quarterly MORTGAGE LENDING HARDLY MODERATES: in Q4 2024 the volume o
Slide 7: Inflation still within tolerance band – housing market situation is mixed
Inflation still within tolerance band – housing market situation is mixed Annual rate of inflation, house prices Quarterly housing market indicators (source of data: KSH, MNB) (source of data: KSH, Duna House) ▪ INFLATION STAYED WITHIN TARGET RANGE: although the annual rate of ▪ THE NUMBER OF NEWLY
Slide 8: Profit and Loss developments, Balance sheet
Profit and Loss developments, Balance sheet
Slide 9: HUF 7.2 billion pre-tax profit in FY 2024
HUF 7.2 billion pre-tax profit in FY 2024 Y/Y development of profit before tax H/H development of profit before tax (HUF billion) (HUF billion) -2.8% -28.2% 7.4 7.2 4.2 3.0 FY 2023 FY 2024 H1 2024 H2 2024 ▪ MBH Mortgage Bank’s profit before tax came at a favourable HUF 7.2 billion despite the paid s
Slide 10: Pre-tax profit of HUF 7.2 billion, mainly due to high net interest income
Pre-tax profit of HUF 7.2 billion, mainly due to high net interest income The profit before tax of the Mortgage Bank reached HUF 7.2 billion in FY 2024 (-2.8% y/y): ▪ Improvement was resulted mainly by the 50.6% y/y increase in net interest income (HUF +4.3 bn y/y). ▪ The increase in net interest in
Slide 11: Total assets decreased by 1.6% y/y
Total assets decreased by 1.6% y/y The total assets of MBH Mortgage Bank reached HUF 892.3 billion at the end of 2024 ( -1.6% y/y): ▪ Short-term funding needs of the Mortgage Bank were fulfilled by the Bank Group in the form of interbank deposits. Accordingly, the stock of loans to banks increased o
Slide 12: Refinanced portfolio, Own originated loans
Refinanced portfolio, Own originated loans
Slide 13: Refinanced portfolio rose, MBH Bank remains the dominant refinancing partner
Refinanced portfolio rose both annual and half-year basis, MBH Bank remains the dominant refinancing partner Development of the refinanced portfolio Development of HUF refinanced portfolio (HUF billion) by counterparty +0.43% 393.3 395.0 3.3 3.0 393.0 MBH 96.3% 390.0 3.7% Other 30.06.2024 31.12.2024
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: Covered bond rating provided by Moody's in middle-investment grade segment
MBH MB’s covered bond rating provided by Moody’s in middle-investment grade segment Mortgage bonds issued by MBH Mortgage Bank to be rated again by Moody's from July 2024 A Moody’s Investor Service announced its long-term rating of ‚A1’ for the issued mortgage bonds with a Counterparty Risk Assessme
Slide 17: Mortgage bonds on international stages: EEML and European Premium Covered Bond Logo
MBH MB mortgage bonds on international stages: European Energy Efficient Mortgage Label and European Premium Covered Bond Logo The European Energy Efficient Mortgage Label (EEML) has been awarded to MBH Mortgage Bank on the basis of objective criteria by an independent advisory body to the European
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) ▪ Outstanding amount of MBH MB mortgage bonds stood at HUF 364.2 billion at the end of 2024. ▪ Total volume of mortgage bond issues reached HUF 59.6 billion as a result of
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), 31.12.2024 18.9% 19.3% 18.5% 16.8% 17.3% 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 Constant Stock Exchange presence mortgage bond issues in 2024 ▪ The most active mortgage bond issuer in the domestic market: auctions and subscriptions organized on a monthly- bimonthly basis ▪ 4 managers ▪ 16 series
Slide 21: Digitalization in business services - MBH Index and MBH AVM
Digitalization in business services - MBH Index and MBH AVM MBH House Price Index MBH AVM with more than a hundred data points Automated property valuation AVM MBH House Price Index has been continuously measuring AVM is an automated (residential) property valuation model residential property prices
Slide 22: Maturity structure of issue securities
Maturity structure of issue securities Maturity structure of MBH MB covered bonds and unsecured bonds (March 31, 2025) (HUF million) ▪ Re-purchase/switch auctions ahead of scheduled maturities serve as tools for decreasing maturity 35,000 concentration ▪ 5Y or longer fixed coupon mortgage bonds play
Slide 23: Share of green mortgage bonds increased further in H2 2024
Share of green mortgage bonds increased further in total issued volume in H2 2024 Interest rate composition of FX composition of outstanding Share of Green Mortgage Bond outstanding mortgage bonds mortgage bonds in total mortgage bond volume (31.12.2024) (31.12.2024) (31.12.2024) 0,0% 100,0% HUF EUR
Slide 24: OC still hovering around 15%, modest decrease in H2 2024
OC still hovering around 15%, while showing a modest decrease in H2 2024 Cover pool composition and OC (in HUF billion) Strict regulatory requirements for the structure of cover pool assets and over-collateralisation ▪ Minimum 2% of over- collateralisation ▪ 180-day liquidity buffer (liquid assets c
Slide 25: 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 cover pool FX composition of cover pool (12.31.2024) 0,8% 99,2% HUF Other LTV composition of loans Remaining maturity structure in the cover pool (31.12.2024) of cover pool loans
Slide 26: Green mortgage bond, ESG
Green mortgage bond, ESG iy MORTGAGE BANK
Slide 27: Green Covered Bond Framework review and green transparency
MBH MB and sustainability: Green Covered Bond Framework review and green transparency Green transparency reports: Starting 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. Gree
Slide 28: 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 H2 2024 MBH MB successfully continued its green mortgage bond issuance activity. It resulted the outstanding volume of MBH MB green mortgage bonds increasing by HUF 8.6bn to 48.6bn by end-December 2024. At th
Slide 29: Standalone ESG strategy and Sustainability report
Standalone ESG strategy and Sustainability report ESG project results for 2024 ▪ Publication of the standalone Sustainability Report (2023) according to GRI standards in July 2024 ▪ Improving MBH MB’s CDP Score in line with MBH MB’s environmental performance: Based on the 2024 assessment, MBH MB ach
Slide 30: Abbreviations
Abbreviations M3 Morteace BANK
Slide 31: 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 32: Disclaimer
Disclaimer M3 Morteace BANK
Slide 33: 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