MFB total assets, net profit shrinks as Főgáz leaves group

Telco

Consolidated total assets of the state-owned Hungarian Development Bank (MFB) fell by 14% to HUF 1,308.4 billion at the end of 2017 as a result of expiry and advance repayments of liabilities as well as the departure of state-owned Főgáz, the bankʼs management said in a consolidated 2017 annual report on Friday.       

Under a summer 2017 government decision, MFB swapped its 100% stake in gas distributor Főgáz for a minority stake in integrated public utilities company NKM Nemzeti Közművek.

Consolidated net assets of MFB rose 3% to HUF 281.9 bln, while the stock of client loans rose 8% to HUF 571.3 bln, the report showed. The corporate loan stock rose 9.5% and the municipal loan stock doubled from a low base.

Including bank loans, the proportion of bad loans in the gross portfolio rose from 7.3% to 7.7%. Some 87.5% of group loans were problem-free, up from 86.6% in 2016.

The stock of MFBʼs liabilities to financial institutions dropped 27% to HUF 404.3 bln. Client deposits nearly doubled to HUF 64.1 bln. 

MFB attracted HUF 122.6 bln in new liabilities last year, the report said. It issued EUR 250 million of FX bonds and HUF 27.4 bln of forint bonds in 2017, while repaying HUF 70 bln in forint bonds and HUF 30 bln in expiring loans.

Consolidated net income dropped 5% to HUF 14.4 bln, as Főgázʼs departure from the group cut profits by HUF 862 mln. Net income of MFB Bank alone jumped from HUF 836 mln to HUF 12.7 bln.

Net interest revenue rose 39% to HUF 8.6 bln, while net income from fees and commissions was slightly negative.

General and administrative expenses rose 17% to HUF 27.1 bln. The average number of employees was up 10% at 689.  

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