MKB 2020 profit plunges 81% on COVID costs, lower revenue
Wikimedia Commons/Globetrotter19
After-tax profit of MKB Bank fell 81% to HUF 8.4 billion in 2020, declining on COVID risk costs and lower revenue, an earnings report released on Thursday shows, according to a report by state news wire MTI.
MKB booked HUF 8.5 bln in "COVID-19 risk costs" for the year. Adjusted provisions came to HUF 1 bln.
Net interest income fell 12% to HUF 36.1 bln and net revenue from commissions and fees dropped 14% to HUF 23.6 bln.
The lender's cost-to-income ratio climbed 12.5 percentage points to 63.6%.
MKB had total assets of HUF 2.227 trillion at the end of 2020, up 19% from twelve months earlier. The gross stock of client loans increased 9% to HUF 1.061 tn and deposit stock rose 10% to HUF 1.489 tln.
MKB is part of an ongoing tie-up with Budapest Bank and MTB Magyar Takarékszövetkezeti Bank that will create Hungary's second-biggest commercial lender: Magyar Bankholding.
Hungary CPI Drop Acknowledged at IMF/World Bank Spring Meeti...
Gov't Considering Fuel Price Intervention
Uber to Return to Hungary at Beginning of Summer
Time Out Market to Open in Budapest Next Year
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.
