MKB books profit of HUF 9.5 bln after years of losses

Deals

MKB Bank had consolidated after-tax profit of HUF 9.5 billion last year, following years of losses, CEO Adam Balog said at a press conference on Tuesday, Hungarian news agency MTI reported.

The state of Hungary acquired troubled MKB Bank from BayernLB in 2014. The National Bank of Hungary (MNB) restructured the lender and sold it to a consortium of two private equity funds, Blue Robin Investments and METIS Private Capital Fund, and Hungaryʼs Pannonia Pension Fund for HUF 37 bln last year.

Balog said the reorganisation of the lender had been completed and the management was now working to put MKB Bank among the top three universal banks in Hungary in the mid-term.

MKB Bankʼs non-performing loan ratio dropped to 12% from 20% during the year, he said. Itʼs capital adequacy ratio rose to 12.04%, he added.

MKB Bankʼs lending stock rose 7%, in spite of fierce competition, Balog said.

Home loan outlays more than doubled and assets of the MKB Bankʼs private banking clients climbed over HUF 340 bln, he added.

MKB Bankʼs shareholders decided against paying a dividend on last yearʼs profit, he said.

The lender has committed to a stock exchange listing by the end of 2019, but a decision on the stake it will float has still not been taken, Balog said.

There is no chance of MKB Bank buying Budapest Bank, he said, answering a question.

The state purchased Budapest Bank from General Electric Capital Group in 2015.

ADVERTISEMENT

Reforms to raise productivity would strengthen recovery - OE... Analysis

Reforms to raise productivity would strengthen recovery - OE...

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.