Q3 2022 Financial Performance Review slide image

Q3 2022 Financial Performance Review

Increase in pro-forma accounting profit due to the extra banking tax was paid in Q2, however MKB decrease in adjusted profit after tax due to the risk cost charged BANK Adjusted Profit After Tax Q/Q development of after-tax profit (HUF bn) Accounting profit after tax (Q3) 40.3 9.4 +353.5% Adjusted profit after tax (Q3) 61.0 -29.0% 45.5 42.8 43.3 19 19 Y/Y development of adj. PAT (HUF bn) Adjusted profit after tax Q3(Y) +39.4% 107.4 149.8 Q1 2022 Q2 2022 Q3 2022 Q1 2022 Q2 2022 Q3 2022 Q3(Y) 2021 Q3(Y) 2022 Accounting profit after tax in Q3 2022 was several times higher than in the previous quarter mainly due to the extra profit tax was paid in Q2, amounting to HUF 30.6 bn (regardless the extra-profit-tax effect the profit grow would be 7%). Adjusted profit after tax for Q3 2022 exhibited an q/q decrease of 29.0% which was driven mainly by charging credit cost due to reflecting the moratorium 4, the impairment charge recognised for the agricultural moratorium and the Sberbank portfolio acquired, and methodological changes during the year. However, the core income grew due to the high net interest income and the increased operating efficiency evidenced by the cost-to-income ratio decreased. The total adjusted profit after tax generated by MKB for the first three quarters of 2022 totalled HUF 149.8 bn, increased by HUF 42.4 bn compared to Q3(Y) 2021, reflecting the increased normalised profitability of the Group. Note: Merged Bank's financials for periods prior to Q2 2022 are calculated on a pro-forma basis
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