MKB books profit of HUF 9.5 bln after years of losses
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.
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