MKB Group maintains its strategic course
MKB prepares for the merger with strong market positions
According to the financial report by MKB Bank Nyrt., which has been published today, MKB Group met its strategic targets and successfully adapted to the changing economic environment last year. MKB Bank has completed the first phase of the integration process amidst macroeconomic uncertainties. The Bank has improved its profitability and efficiency, while the number of customers continued to grow. The balance sheet total was HUF 10,614.4 billion and the adjusted after-tax profit was HUF 176.6 billion at the end of last year.
MKB Group has published its Annual Report for the 2022 financial year, which also includes the figures of Budapest Bank, which
was merged during the year, and Takarék Group, which was also consolidated, as was Sberbank’s loan portfolio, which has been
successfully acquired by MKB.
At the end of 2022, the MKB Group's total assets amounted to HUF 10,614.4 billion, which is 8.9% higher than in the previous year. The gross loan portfolio of MKB Group increased by HUF 582,4 billion to HUF 5,011.1 billion in one year. Retail lending increased by 10.9% and the volume of corporate loans increased by 19.3% over the last year. In addition, the volume of deposits in MKB Group also increased (by 5.7%) totalling HUF 6,574.4 billion on the last day of 2022. The volume of corporate deposits grew by 6.9%, while that of the retail segment was unchanged.
Last year, the bank group group increased its customer base and increased its market share in several areas that are pivotal to economic growth and to MKB’s strategy. In the retail sector, the volume of unsecured loans increased significantly, by 34.2%, in 2022, while that of secured loans, including the portfolio of Sberbank, increased by HUF 19.9 billion.
The agri-food loan portfolio of the MKB Group increased by more than HUF 90 billion to HUF 540 billion by the end of the year. In addition, the loan portfolios of premium SMEs and large corporate clients increased by 17.8%, while that of small businesses increased by 15.1%.
The bank's equity increased to HUF 808.7 billion from HUF 692.0 billion at the end of 2021: this further strengthened MKB's resilience to any crisis. The Group's capital adequacy ratio rose to 19.7%, which is significantly higher than the regulatory minimum. This is a solid basis for further expansion. MKB Bank’s liquidity was also stable, well above regulatory requirements.
„We are proud that our banking group has been able to adapt to the turbulent macroeconomic environment, meet its strategic objectives and strengthen its positions in all key market segments. We thank our customers for their trust. Building on last year's results, we will continue to build an even more efficient bank, which serves our customers' needs even better.”
„MKB Group closed 2022 with a pre-tax profit of HUF 107.4 billion, which includes the HUF 73.4 billion losses incurred by government actions. The adjusted after-tax profit of MKB Group was HUF 176.6 billion in 2022. MKB Group was able to increase its customer base, grow its revenues and enhance profitability, even amidst the intense transformation process and uncertainties in the market, while operating costs increased significantly, mainly due to inflation.”
In 2022, MKB Group's operating costs increased at a lower rate than the growth in revenues, which amounted to HUF 215.8 billion. The 18.0% increase compared to the previous year is mainly caused by the macroeconomic environment, including high inflation and exchange rate effects, but also due to the significant increase in revenues, which reduced the annual cost-to-income ratio to 45.2%.