The member banks of Hungarian Bankholding are key players of the agricultural sector
The member banks attend together under the flag of Hungarian Bankholding for the first time at a national event
The member banks of Hungarian Bankholding, Budapest Bank, MKB Bank and Takarékbank, have a total loan and leasing portfolio of almost HUF 500 billion in the agricultural sector, meaning a cumulative market share of over 25%. With about 41,000 agricultural clients, the member banks were at the forefront of providing various economic stimulus loan products, disbursing a total of HUF 210 billion in funds to companies under the FGS GO!, Széchenyi Card and the EXIM Compensation programs. Their goal is further growth, treating food industry and other higher value-added developments and investments as a priority area.
For the first time, Budapest Bank, MKB Bank and Takarékbank appear together under the colors of Hungarian Bankholding at the National Agricultural and Food Exhibition and Fair (OMÉK). The Farmer's Market concept - embodying vertically integrated food production and the farm-to-table approach - was awarded by the Hungarian Marketing Association with the OMÉK 2021 Marketing Award in the food industry category.
The member banks are significant players in the market individually, and together they are market leaders in several segments. The total agri-food loan portfolio of the member banks is HUF 473 billion, which covers a quarter of the market. Half of the total portfolio is realized at agricultural companies, where the three credit institutions have an even larger share of almost 30%. A total of 41,000 agricultural enterprises – from the smallest primary producers to large food companies and agricultural integrators – have chosen one of the member banks of Hungarian Bankholding as their financial partner so far. The commitment of the financial institutions to the agro-industry is shown by the fact that almost 13% of all corporate clients are from agricultural businesses.
Domestic agriculture emerged as a winner from the difficulties of the pandemic period, in which various state-subsidized economic stimulus loan programs played a major role. Under favorable conditions, thousands of billions of forints flowed into the domestic economy, therefore into the agriculture as well. Through 11,500 transactions, the member banks provided nearly HUF 95 billion under the FGS GO! Program, HUF 84 billion in the Széchenyi Card Program and HUF 34 billion in EXIM Compensation Program to the domestic farmers.
"Hungarian agriculture is of paramount importance to the member banks of Hungarian Bankholding, and our long-term goals include achieving the absolute market leading position in the sector. We intend to pay particular attention to encouraging and financing investments in the food industry. We consider it very important for developments to take place as much as possible in the agricultural sector, which will help given company to move up in the production value chain. The Hungarian agriculture and food industry can only be successful if it can properly integrate the tools of precision farming and the latest digital solutions into its daily operations. Efforts should be made to maximize the added value of domestic enterprises in the production of the finished products. We will do our best to provide these investments with the most personalized and affordable financing solutions.”
Hungarian Bankholding Ltd.
Hungarian Bankholding Ltd. is a domestically owned financial holding company, which aims to implement the merger of Budapest Bank Zrt., MKB Bank Nyrt. and Takarék Group. The company commenced its effective operation on 15 December 2020, after MNB (acting as the central bank of Hungary) approved the merger of three credit institutions, and the shares of the key owners were transferred to the joint holding company. By transferring the in-kind contributions, the second largest banking group in Hungary has been established.
In March 2021, the Board of Directors and the Supervisory Board of the Hungarian Bankholding approved their five-year strategy for the merger of the member banks, based on which the fusion of the three credit institutions is planned to be concluded in 2023. The aim of the emerging large bank is to be the most modern bank in Hungary, which will introduce flexible, internationally leading digital solutions.The new large bank will serve the full market spectrum and all customer segments in the future, with a significant emphasis on the provision of new, modern range of products and services to retail, micro, small and medium-sized enterprise and agricultural customers.
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