MKB nearly triples consolidated pre-tax profit in 2017
The MKB Bank group almost tripled its consolidated pre-tax profit from a year earlier to HUF 20.7 billion in 2017, the bank said on Thursday. Results improved in almost all segments, on the retail and corporate market as well as in private banking.
MKB Bank released its audited and consolidated annual report on Thursday, prepared according to Hungarian Accounting Regulations and based on International Financial Reporting Standards (IFRS).
As the result of a three-year program of restructuring under EU professional supervision, the bank turned profitable in 2016 for the first time in six years, and this was followed by a further strengthening of its market positions and profitability in 2017.
Consolidated after-tax profit more than doubled to HUF 19.2 bln, up from HUF 9.5 bln a year earlier, shows a press release sent by the bank to the Budapest Business Journal. The MKB Group also strengthened its capital position, with the capital adequacy ratio rising to 15.7%, compared to 12% in 2016. The ratio of retail non-performing loans (NPLs) was also reduced.
Home loans disbursed by the MKB Group increased by 140% last year to some HUF 37 bln, while new personal loans doubled. The bank also saw a sharp jump of almost 40% in the number of new retail customers.
In the corporate segment, MKB took a significant share of the market in credit programs launched by the National Bank of Hungary (MNB). The bankʼs core stock of corporate loans grew by 20% in total compared to 2016.
In the private banking arm, MKB further reinforced its market position in 2017, handling more than HUF 420 bln in assets for some 2,000 clients, an increase of HUF 80 bln on the preceding year.
MKB Bank had total assets of HUF 2,045 bln at the end of 2017, down 3% from twelve months earlier. The stock of client loans was little changed at HUF 858.6 bln as outlays increased markedly but non-performing loans were written off.
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