Q3 2022 Financial Performance Review
MKB
BANK
In the fight against high inflation, monetary tightening continued and intensified in the third
quarter of 2022
External factors affecting the Bank's operations - Macroeconomics
31.12.2018
NBH base rate and 3M BUBOR (%)
SWAP yield curves (%)
14
16
With inflationary pressures and upside risks
continuing to build, the NBH continued and
intensified the cycle of interest rate hikes that
started in the summer of 2021. The central
bank's base rate rose from 7.75% at the end of
June to 13.0% in the third quarter (a total
increase of 525 basis points). While the NBH
decided further sophistication of its monetary
tools with increasing interest rates in October.
The central bank expects an inflation
turnaround to take place in Hungary in early
2023.
The rising yield environment also led to
changes in the SWAP yield curve, which rose by
around 500 basis points at the short end and
around 200 basis points at the long end during
the quarter. The GDMA benchmark yields also
rose, but the longer maturities have seen more
moderate increases in recent months, resulting
in an inverted yield curve.
16
14
12
10
8
6
4
12
10
8
6
4
2
0
2
0
M3
31.03.2019
30.06.2019
30.09.2019
31.12.2019
31.03.2020
30.06.2020
30.09.2020
31.12.2020
31.03.2021
30.06.2021
30.09.2021
31.12.2021
31.03.2022
30.06.2022
30.09.2022
NBH base rate (%)
GDMA benchmark yields (%)
2021 Q4
3M BUBOR (%)
M6
M12
Y3
Y5
Y10
Y15
Y20
2022 Q1
2022 Q2
2022 Q3
2
1
0
-5
1 2 3 4 5 6
-1
-2
-3
14
12
12
10
8
6
4
O/N 1M 3M 6M 9M 1Y 2Y 3Y 4Y 5Y 6Y 7Y 8Y 9Y 10Y 12Y 15Y
31.12.2021
31.03.2022
30.06.2022
GDMA-SWAP spread (%-pts)
―30.09.2022
31.12.2018
31.03.2019
30.06.2019
30.09.2019
31.12.2019
31.03.2020
30.06.2020
30.09.2020
31.12.2020
31.03.2021
30.06.2021
30.09.2021
31.12.2021
31.03.2022
3 years
5 years
10 years
30.06.2022
30.09.2022
17View entire presentation