Q3 2022 Financial Performance Review slide image

Q3 2022 Financial Performance Review

Focus on the challenging 2023 MKB Disciplined reserve policy, successful portfolio purchase, merger and new bank, new brand BANK Portfolio Merger and new name Economic challanges Strategy purchase (Sber) 2023-27 ☐ ☐ The Strategy 2023-27 was passed on the 14th September by the Board. It strengthened the will for the merger of the MKB and Takarékbank, with further detailing the digital IT system and solution developments, the merger procedures, the improvements of the service level and value proposition. The new strategy also took the considerations of the rapidly changing economic and regulatory environment. The Strategy also priorized the active MKB share trade for the 2024-2025 period, based on the economic upturn and the improving business abilities of MKB, with expectedly increasing record of favourable results. The MKB purchased the portfolio of the Hungarian Sberbank consisting of mostly SME and household loan. The assets were transferred on the 1st August. The Bank could successfully receive and manage the new portfolio and it will fully integrated regarding the IT system in this year. The new portfolio increased market shares of the MKB. The bank was able to supply the relevant capital and liquidity requirement behind the integrated loan portfolio. Energy, raw material price growth, reduced domestic and import demand, increased cost of finance leads to the slowing domestic product growth in 2023 with temporary quarters to be measured potentially as negative growth. Fiscal policy has a narrowed room for anti-cyclical measures with limitations coming from the increased cost of social spending and the uncertainties of energy price movements. Monetary policy is expected to keep interest rate high till the risk turns off for sustained inflation. Liquidity squeeze begun. Regulations framing the activity, interest policy and profitability of the financial institutions will also be the attributes of the year 2023. The rapidly changing economic soundings and the limited abilities to utilize business growth in 2023 further strengthens the path for synergies and the importance of the merger regarding Takarékbank and MKB in 2023. Over the cost considerations the banks should increase the reserves for the more depressed economic period. MKB has a favourable position to accommodate to the challenges, utilize synergies, restructure its organisation, increase reserves and digitalize. It will also be supported by a new brand name: MBH Bank from May 2023. MCH LO 5
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