Hungary’s second-largest lender MBH Bank reported impressive growth in lending last year, as its balance sheet increased by 13% to HUF12.5 trillion (€31.4bn) driven by a 37% surge in retail lending.
Net profit, adjusted for the impact of the bank levy and windfall profit tax, after-tax profit slipped 3% to HUF236.0bn. Net interest income fell 10% to HUF511.6bn and net revenue from commissions and fees rose 12% to HUF105.0bn, after adjustments.
The bank’s capital adequacy ratio was close to 20%, while the ratio of non-performing loans (NPLs) stood at just 2.8%.
Retail loans jumped 37% to HUF2.4 trillion and corporate lending stock rose 7% to HUF3 trillion. Client deposits increased 16% to HUF8.1 trillion, while retail deposits rose 21% to HUF3.2 trillion
The bank's share of the retail lending market rose from 16.1% to 21.1%, while in corporate lending it maintained a stable 20% share. MBH reinforced its dominant position in agribusiness lending with a 25% market share and saw record growth in its leasing operations, where it holds 27% of the market.
The rise in retail lending and deposit stock was in part due to the acquisition of a controlling stake in Fundamenta Lakaskassza, a home savings bank. Home loan outlays quintupled in 2024, giving MBH Bank a 31% market share in the fourth quarter.
Additionally, the bank successfully issued an international bond worth €750m the largest such issuance in the Hungarian banking sector to date.
MBH Bank was created from the merger of three mid-sized banks, MKB Bank, Takarekbank and Budapest Bank in 2023. The merger of two state-owned banks and one owned in majority by Lorinc Meszaros was part of a government-supported drive to consolidate the banking sector and create a national champion, a rival to market leader OTP, thus boosting the share of domestic ownership in the banking sector to over 50%.