MKB Bank profit up over 30% in 2018

Telco

After-tax profit of MKB Bank rose more than 30% to HUF 25.1 billion last year, Chairman-CEO Ádám Balog said at a press conference on Friday. The bankʼs board will propose to shareholders payment of HUF 4.8 bln in dividends on last yearʼs earnings.

MKB released HUF 0.8 bln of provisions last year, and its ratio of non-performing loans (NPLs) declined to 5.8%, Balog was cited as saying by state news agency MTI.

The lender closed the year with total assets of HUF 1.857 trillion, down 9.2% from 12 months earlier. Its stock of client deposits fell 11% to HUF 1.372 tln, while the stock of securities declined 19% to HUF 773 bln. MKBʼs net lending stock rose 4.3% to HUF 895.2 bln.

Operating costs at MKB rose 8.4% to HUF 50.6 bln, as the bank made the move to digitalization, closing 18 branches.

This year, MKB targets profit somewhere between last yearʼs HUF 25.1 bln and 2017ʼs HUF 19.2 bln, Balog said. He added that shareholders decided to float the bankʼs shares on the Budapest Stock Exchange (BÉT) and will soon announce details of the move. He added that, in his opinion, the lender should first float 20-30% of its shares on the bourse.

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