Q3 2022 Financial Performance Review
CIR ratio could decrease to 39.1% despite intensifying inflation pressure
MKB
BANK Financial Performance - P&L Cost
GAE breakdown (HUF bn)
Personnel
expenses
Amortization
charges
Operating
expenses
94.3
75.5
65.9
+14.6%
22.6
26.1
27.0
FY2021 Q3 2021
62.3
Cost-to-income ratio (adjusted, %)
54.0%
50.2%
50.3%
42.1%
42.6%
39.1%
+17.8%
Q2 2022 Q3 2022
Wage inflation %
FY2021
Q3(Y) 2021 Q3(Y) 2022
Q3(Y) 2021 Q3(Y) 2022 Q3 2021
Q2 2022 Q3 2022
Cost efficiency and headcounts (FTE)
43.5
48.2
+10.8%
9.877
9.904
9.688
9.904
9.604
9.688
FTE
27
22
14.0
18.4
14.6
FY2021 Q3 2021
Q2 2022 Q3 2022
Core inflation % SEP/SEP
Q3(Y) 2021 Q3(Y) 2022
+20.7%
2.00%
1.89%
1.87%
1.85%
1.98%
1.89%
26.2
6.1
18.2
20.5
18.2
16.9
19.8
17.2
20.9
20.7
C/TA (%)
C/FTE
(huf mn,
6.1
8.2
+12.2%
annualized)
FY2021
Q3(Y) 2021 Q3(Y) 2022
FY2021
Q3(Y) 2021 Q3(Y) 2022
Q3 2021
Q2 2022 Q3 2022
Q3 2021 Q2 2022 Q3 2022
Adjusted CIR of 39.1% shows a significant decreases of 11.2%pt y/y as a result of the strict cost control measure, the realization of merger synergies, as well as the considerable
increases in core income.
Personnel expenses in Q3(Y)2022 grew by HUF 9.6 bn compared to Q3(Y) 2021 (+14.6% y/y), which was driven mainly by the effect of wage inflation.
Q3(Y) 2022 OPEX increased by HUF 4.7 bn (+10.8% y/y), driven by the intensifying inflation and changes in the applied accounting methodologies of VAT deduction ratio.
Due to strict cost control, both PEREX and OPEX increased on a lower pace compared to the inflation.
The amount of amortization charges was HUF 8.2 bn in Q3 2022, increased by 34.1% p/p, as result of previously implemented digitalization and regulatory compliance.
Note: Merged Bank's financials for periods prior to Q2 2022 are calculated on a pro-forma basisView entire presentation