Q3 2022 Financial Performance Review slide image

Q3 2022 Financial Performance Review

MKB Business highlights BANK Subsidiaries & partners Non-standard business Standard Business Business highlights - Key highlights by business lines As a result of the merger, the product and service offering was consolidated and became available to all customers of the merging banks. The basis of MKB Bank's branch network development strategy is the continuous improvement of the level of customer service, in which ensuring the most efficient and convenient customer service plays a prominent role. The gross loan portfolio increased dynamically by HUF 131.5bn q/q, driven by the acquisition of the Sberbank portfolio. A new premium credit card has been launched in the branch network, which is named GO! Platinum credit card. The new card is primarily designed to meet the special needs of premium segment and private banking clients. The trust of clients strengthened towards the bank, resulting in an increase of HUF 242.4 y/y (+8.8%) in standard business deposit volume leading to HUF 3,000 bn at the end of September 2022. Regarding micro and small business segment, the main focus was on the full launch of the new Széchenyi Card MAX programme products. MKB was one of the first banks to join the programme and managed to process the applications. As a result of the merger of MKB Bank and Budapest Bank, part of the synergies were already realized, as both MKB and Budapest Bank had traditionally strong market positions in the corporate segment. The clients of the merged banks now have access to a unified, but broader range of products, which the merged bank aims to further optimize in order to realize additional synergies. The first phase of the merger of the Private Banking business line was successfully completed. As a result of the formation of a consolidated national network, the Bank established dedicated private banking service centers in several locations including Budapest and in almost twenty locations nationwide. As the bank considered the small and medium-sized enterprise (SME) clientele as a key segment, it increased product penetration, leading to a 9% organically increase in loan volumes provided to medium-sized enterprises, which is comparable to increases in the large corporate and the agricultural loan portfolio which increased annually 30% and 25% respectively. Leasing: The leasing portfolio of the member companies of MKB Group amounted to HUF 532.1 billion as of 30 September 2022, which amounted HUF 4,6 bn over the previous quarter, despite the unfavourable market conditions in 2022. Insurance: Within the framework of a strategic cooperation with CIG Pannónia Group, CIG Pannónia Insurance agreed with BNP Paribas Cardif Life Insurance Ltd. and BNP Paribas Insurance Ltd. to transfer the group insurance contracts concluded between Budapest Bank Zrt., the legal predecessor of MKB Bank and BNP Cardif Insurance to CIG Pannónia Insurance as of 1 September 2022 in order to provide full customer service. Asset management: at the end of Q3 2022, the assets under the management of MKB Alapkezelő Zrt. amounted to HUF 1,216 billion, held in investment funds, institutional assets and private equity funds. 12
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