MKB 2020 profit plunges 81% on COVID costs, lower revenue

Banking

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.

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