MKB Q1 profit slips as integration costs rise

Banking

Wikimedia Commons/Globetrotter19

First-quarter after-tax profit of MKB Bank fell 12% year-on-year to HUF 23.5 billion as integration costs climbed, state news wire MTI writes, citing an earnings report published on Thursday.

MKB is part of a tie-up with Budapest Bank and Takarekbank that is set to create Hungary's second-biggest commercial lender. It booked integration costs of HUF 2.6 bln in Q1, up 86% from the same period a year earlier.

Net interest revenue, adjusted for one-offs, climbed 120% to HUF 25.2 bln. Adjusted revenue from commissions and fees edged down 1% to HUF 5.5 bln.  

MKB freed up HUF 3.4 bln of provisions during the period.

MKB had total assets of HUF 3.797 tln at the end of March, up 27% from a year earlier. Gross lending stock rose 13% to HUF 1.288 tln and stock of client deposits climbed 22% to HUF 2.217 tln.

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