Personally for you

Personally for you
Profile of MKB Bank and MKB Group
With detailed 2008YE and 2009H1 key figures
Budapest, September, 2009
Why to choose MKB Bank?
Its main owner, BayernLB, 6th largest bank of Germany (end-2008) had a solid capital base. As per
30 June 2009, equity rose by EUR 7.5 billion to EUR 18.8 billion, thanks to the measures undertaken
by it’s main shareholder, Free State of Bavaria. Core capital ratio swelled to 10.4%. BayernLB has
posted a profit for the first half of 2009, despite the global recession. The Group’s net operating
income for the first six months of the year swung to EUR 597 million.
MKB Bank enjoys long-term commitment from the strategic owner, continuous support including
capital and the necessary refinancing. Share capital was increased by the main shareholder with
HUF 26,500 million in February 2009.
MKB Group is the only Hungarian financial group which provides complex services from
commercial banking to complex car finance, pension- and health care funds, asset management and
insurance products.
While major player in corporate banking, its activities are well diversified among SMEs, project
finance, factoring and trade finance, retail (including micro) and private banking, as well as
comprehensive range of money and capital market services.
MKB Bank has sound capital base, it is 2nd largest domestic bank by equity with 12.5% CAR at
end-June, 2009. Stable liquidity position, improving LTD.
MKB has a very firm funding base, it has ~10% market share in corporate deposits, and
~6% in household’s savings with increasing tendency, it is major issuer of domestic bond
market
The Bank successfully carried out anti-crisis measures, closed 1H2009 with positive result and
increasing profitability on solid grounds.
2
Key figures of MKB Group
consolidated, IFRS, HUF mn
Total Assets
Loans and advances to customers
Customer deposits
Shareholder's equity
Gross Operating Income
Operating profit
Profit Before Taxation
2008
12 months
Actual
2009
6 months
Actual*
2 885 426
2 292 518
1 267 842
229 222
3 055 657
2 280 235
1 277 390
261 444
120 444
50 084
73 091
37 658
8 336
7 896
3,4%
0,3%
58,4%
10,8%
6,8%
0,5%
48,5%
12,5%
MKB maintained its solid
capital base and safe liquidity
MKB Bank while prudently set
aside the necessary
provisions, successfully
managed to overcome the
hardest phase of the crisis
Performance Ratios
Return on Average Equity (ROAE)
Return on Average Assets (ROAA)
Cost-to-income ratio
CAR
The financial position of the
subsidiaries is stable
* Unaudited
3
MKB Bank in the Hungarian banking context (June, 2009.):
good crisis management
Shareholder'
s equity
(HUF mn)
842,1
255,3
215,9
202,8
142,1
100,8
45,1
Rank Bank
1
2
3
4
5
6
7
OTP*
MKB*
CIB
KH
Raiffeisen
BB**
FHB
Total Assets
(HUF mn)
Rank Bank
1
2
3
4
5
6
7
OTP*
KH
CIB
MKB*
Raiffeisen
BB**
FHB
6084,5
3205,7
3062,6
2815,6
2542,8
957,1
817,5
Change in gross
operating income
(09h1/08h1)
Change in pre tax
profit (09h1/08h1)
-3%
16%
-3%
21%
-52%
13%
MKB*
126%
37%
Unicredit
-13%
22%
-3%
17%
18%
34%
CIB
-87%
4%
Raiffeisen
-114%
8%
OTP*
Erste
KH
BB**
gross operating income
FHB
MKB is the 4th largest
market player
With
2nd
largest
shareholder equity
Most dynamic increase
in
gross
operating
income
and
pre-tax
profit in the last 12
months
Significantly profitable,
while setting aside the
required provisions
pre-tax profit
-20
0
20
40
60
Source: interim financial statements
* IFRS unconsolidated
** according to HAR, consolidated
otherwise IFRS consolidated
80
100
120
140
160
180
200
220
4
Strong business activity in 2008
Sound capital base and safe liquidity
Strategy for aiming stronger income generation by business diversification from 2005:
MKB Bank: boom of retail, small and medium size enterprises as well as money and
capital market business line; complete universality in Hungary: successful launch and
development of MKB Insurance Companies
3 countries, 219 branches, almost 1 million (880 thousand retail and 85 thousand
corporate) customers
80% increase of gross operating income in 3 years*
2nd largest domestic bank by equity, 4th largest by assets
Hungarian market leader in project financing and factoring with over 20% market-share.
One of the largest player in lending to non-financial companies
Largest net asset value growth and dynamic on the investment funds market in 2008**, 1.5%
growth of market share; 3rd place in guaranteed funds with 11.3% market share; 2nd in funds
denominated in USD (15.3% market share); 3rd in funds denominated in EUR (11.4% market
share)
Major issuer of domestic bond market with 10.6% share; active on the international capital
market ***
Strong expansion in private individual business: besides increasing market share in savings
0.6% market share growth in lending with focus on mortgage-covered loans, +111,000
customers since end-2005
* IFRS consolidated
**Among participants with over 1% market share
***Prior to crisis
5
Our awards reflect our commitment to quality
Branchmarking Ltd: The most efficient branch network and call center: 2008, 2007
Liquid Real Estate (Euromoney): 1st in Financial Advisory services in Hungary in 2008 in the
combined category of „Commercial banking, real estate financing activity, Advisory and
Consultancy Services”
Mastercard- Bank of the year: 3rd, The retail current account product of the year, Socially
responsible bank of the year – 2008
Best strategic cooperation with civil organisations – Good CSR – 2008
6
Ownership: strategic owner with long-term commitment
Ownership structure
Other; 10,25%
Share Capital: HUF 14.1 bn*
Shareholders’ Equity: HUF 216.8 bn*
Strategic owners with long-term commitment
1994: first privatised large bank in Central Eastern
Europe
The main owner is BayernLB the 6th largest bank of
Germany by total assets, and 5th by equity (2008). Its
total assets amounted to EUR 421.7 billion, equity and
subordinated capital was EUR 23.1 billion at end-2008
The Bank's legal form is that of a "corporation
established under public law“. The Free State of
Bavaria holds ((indirectly via BayernLB Holding AG)
94% and the Association of Bavarian Savings Banks 6
% of the shares. Member of S-Finanzgruppe
2002, 2003, 2005, 2006, 2007 and 2008: total of EUR
376 M subordinated capital from BayernLB. EUR 95.6
M capital increase in 2009
BayernLB; 89,75%
Rating**
*IFRS, non-consolidated, 2008
**solicited rating, 19 MAY 2009
MKB Bank is in investment category:
Moody’s:
Bank Deposits -Fgn Curr:
Bank Deposits -Dom Curr:
Bank Financial Strength:
Senior Unsecured/Subordinate:
Other Short Term:
Outlook:
Baa2/P-2
Baa2/P-2
D
Baa2/Baa3
P-2
negative
7
Large corporate and institutional customers: tailor-made services
Large corporate customers:
Corporate loans – market share
16%
14%
11,6%11,6%
11,0%
12%
10%
3,100 large corporate and institutional customers. It is one
of the largest in financing non-financial companies,
major bank in corporate payments turnover.
Loans to large corporate, project and institutional customers
reached HUF 916.4 billion at the end of 2008 and their
deposits grew to HUF 265.5 billion.
Full range of products, complex services to domestic blue
chip, large corporate customers and subsidiaries of
multinational customers.
Intense cooperation of customer relationship and product
support areas ensure tailor-made services fit to clients’
needs.
Personal services in Budapest and the countryside by
dedicated relationship managers.
Senior experts provide industry coverage and product
competence .
Professional offer of full range of retail and treasury
products.
12,8%
13,9%13,7%
13,4%
12,8%12,5% 13%12,6%
13,0%
9,1%
8%
6%
4%
2%
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
0%
Corporate deposits – market share
12%
11,2%
11,0%11,2%
10,6%
10,4%
10,2%
10,1%
9,8% 10,1% 9,7%
10,1%
10%
8,5%
8,9%
8%
6%
Institutional customers
4%
2%
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
0%
One of the leading banks in servicing insurance companies
Foundations, non-profit segment
Professional
chambers,
organisations, etc.
Specific products for local municipalities
solicitors,
professional
8
Project financing/ Mid-market customers: renewed business models
Project financingMarket share 2008
MKB: 27%
Factoring Market share 2008
MKB: 26%
Project financing
Number of customers: 620, loans amounted to HUF 720 billion at end-2008
Market leader in project, real estate financing since 1995 (received the „Best commercial bank in
Hungary” award of Euromoney Liquid Real Estate in 2008)
Major player in different project segments: offices, residential, commercial real estate,
telecommunication, energy, infrastructure, PPP projects
Shift towards the ’arrange and sell’ business model from 2008
Cooperation with BayernLB
Mid-market companies
Number of customers: 11,100
Focus is on the suppliers of multinational companies, export oriented, regionally active mid-markets
and domestic companies with growth potential and perspective
New segmentation from market and risk management aspect
Wide range of preferential state-subsidized and EU loans
Market leader position in factoring
Equipment leasing, trade finance
Upper mid-market companies
At end-2008 the deposits reached HUF 117.1 billion, while loans amounted to HUF 322.8 billion
Selected range of products, tailor-made services
Selective business growth based on bank payment turnover by the intensification of funds
acquision
Focus on trade finance and factoring
Considerable demand for project financing
Lower mid-market companies
At end-2008 loans reached HUF 331.8 billion and the deposits amounted to HUF 169.2 billion
Standardised sales, standard range of products and streamlined credit approval processes as of
2009
Quicker customer services
Primary focus is on payments, accounts and deposits on top of risk consolidation and monitoring of
the existing portfolio
9
Products and Services for Corporate and Institutional Customers
HUF and FX accounts
HUF and FX deposits
HUF and FX loans
Business cards
Payment services (cash pool,
documentary transactions,
transfers, issue of L/Cs,
collections, guarantees)
Discounting of bills, L/Cs
Teller, bulk cash and safe
services
Money market and riskmanagement products and
services
Export, import, cross border
and domestic factoring
Vehicle leasing and fleet
management
Asset leasing
Project finance and structured
finance including PPP types
State subsidised lending
products
MKB EU program
Securities accounts
Securities trading
MKB and BayernLB Lux
investment funds
Portfolio management and
custody services
MKB Pension Fund
MKB Health Care Fund
MKB Insurance companies
Financial and investment
advisory
Securities programs: IPO’s,
LBOs, MBOs
Acquisition finance
Property trading and
management
Real-estate valuation and
assessment
Trade Finance
10
Small companies: renewed business model as of 2009
In strategic focus since 2007; clients up to HUF 250 million
net annual sales, served with standardized products
The number of customers reached 29,150 at end-2008
The accounts and deposits of small companies reached HUF
94 billion by the end of 2008, loans exceeded HUF 32 billion
Full-service at every branch via dedicated small companyand financial advisors
Renewed small company product range; competitive
specific account packages and loan products
Active role in state-subsidized products
Wide range of cooperation agreements with different
professional and entrepreneur organisations, professional
chambers, property appraisers
Special focus given to electronic banking:
over 14,000
small companies use the NetBANKer service
11
Small company service packages: from start-ups to professionals
Dinamika
For start-up customers,
but with considerable
account turnover
preferring internet
communication and
internet banking
Account keeping fee is
reduced by usable
turnover commission
Up to 13 free electronic
banking payment transfer
transactions outside the
bank
In case of paper based
banking up to 6 free of
charge payment
transactions within the
bank
Account keeping for a
low monthly fee
HUF account keeping and
wide range of related
services for low fix
monthly fee
Outstanding sight
interest, if the account
holder has a specified
service package as a
private individual
Free of charge cash payin
To whom?
Electronic
services
Free of charge
NetBANKer service
Elektronikus
Suitable for the
reduction of the
banking costs of small
companies with
stable operation
For start-up micro
companies with
scarce capital and
low bank turnover
Basic banking,
payment
services
Nova
Free of charge
NetBANKer service
and NetBANKer
Business at
preferential
conditions
Free of charge
electronic banking
services necessary for
the operation of the
enterprise
Preferential electronic
transaction fees
Flotta
For our customers
with extended
business relationship
preferring internet
banking
HUF account keeping at
preferential monthly
fee and one foreign
currency account or
PCBANKer service free
of charge
All payments are free
within the bank
Preferential electronic
transaction fees
Free of charge
electronic services
necessary for the
operation of the
enterprise
12
MKB small company loans: Fit and Fast
Our loans suits to as many companies as possible in the small company
sector:
We offer our loans with different conditions and possibilities. 1x1 Overdraft is advantageous for enterprises needing fast and flexible help in terms
of financing requirements due to temporary cash-flow and current asset fluctuations as this facility can be simply applied for without a material
collateral up to 10% of the net sales, max, HUF 15,000,000,
If the enterprise needs higher overdraft facility it can use 1x1 Overdraft Plus product with Garantiqa Hitelgarancia Zrt guarantee, and
the requested amount can reach 25% of the net sales, but max, HUF 25,000,000,
If the company needs working capital to cover its inventory and material needs we recommend 1x1 Working capital loan. The
credit facility, which depends on the size of the collateral may reach HUF 50,000,000 can be HUF or EUR based, utilised freely
during the tenor, however it has to be partially repaid twice a year.
For the purchase of real estates the best is 1x1 Investment Loan, the repayment of which does not have to be started
immediately, it is possible to choose a grace period depending on the tenor of the loan. To finance larger expenses or
replace other bank loan 1x1 Free Utilisation Mortgage Loan is the best, in case of which the entrepreneur can also
have a grace period. In case of these two products the maximum requested loan amount – depending on the value of the
real estate – can be up to HUF 125,000,000.
Our 1x1 Loan with Deposit Security can be suitable for free use or the replacement of owner’s loan, in case
of a security placed by private individual up to HUF 250 million loan can be provided.
In addition to these loans Széchenyi Card 2 construction can also be applied for at MKB Bank.
13
Retail customers (1): quality personal services
Retail loans – market share
Personally for you – differentiated value proposition
and service level to each customer segment
7%
6,1%
5,5%
6%
286,000 customers; targeted clientele: affluent customers
with asset and income potential higher than average
5%
4,1%
3,6%3,8%
3,0%
2,7%
4%
3%
HUF 523 billion in 2008
2,0%
2%
1,3%
0,9%
0,8%
0,7%
1% 0,4%0,5%0,6%
Near 200,000 retail bankcards at end-2008
Service packages to segments: focus is on the young
generation (Caring, Student Career packages with
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
0%
1994
Savings from households (deposit+bond+funds) grew to
preferential conditions, Baby bond), outstanding financial
services: Exclusive package; financial
Savings of households – market share
silver years: Pensioner package
7%
6%
5,4% 5,4% 5,4% 5,3% 5,2% 5,3% 5,5% 5,5%
peace of the
Wide range of savings and investment opportunities
according to risk-appetite; Focus on standard and
5,6% 5,7% 5,7% 5,8% 5,7%
campaign term deposits
5%
4%
Electronic
channels:
NetBANKer,
NetBROKer,
TeleBANKer, MobilBanker
3%
2%
81 branches, ATM, Portal, Retail newsletter
1%
2008q4
2008q3
2008q2
2008q1
2007q4
2007q3
2007q2
2007q1
2006q4
2006q3
2006q2
2006q1
2005q4
0%
14
Retail customers (2): MKB Bank: the mortgage lending specialist
The lending products of MKB Bank offer flexibility for clients, the
Bank is the expert of mortgage loans
Fast processes, credit products for every client needs
In 2008 the market share of MKB Bank in new deals was over 10%;
the loan portfolio of private individuals grew to HUF 464.5 billion
Products:
Overdraft
Deposit and security collateralised loans
Personal loan (HUF, EUR)
Loan for Pension Fund members
Credit cards (24,700 cards)
Credit cards issued by MKB Bank
Co-branded credit cards: T-Mobile, Lufthansa, WestEnd
Wide range of housing and private loans – at end-2008
HUF and EUR denominated loans
Értékmegırzı combined loan – insurance product
MKB-Fundamenta Housing and Private Loan Programme
Hitelcsúcs – attractive LTV’s
Full range of housing loans with preferential conditions
(state subsidy)
Housing loans for any housing purpose (bridge, expansion,
modernisation, purchase of new and second hand house
construction, etc.)
Real estate loans – other than home purpose (e.g. holiday resort)
15
Products and services for Private Individuals
HUF and FX accounts
Account packages (Exclusive, Student,
Career)
Term deposits
MKB bonds
‘Kivételes’ account
Savings account
Money market deposit
MKB ‘Hozamsuli’
(deposit+bond+investment fund)
MKB Housing loans and Home Equity
loan (HUF, EUR)
Personal loan (HUF, EUR)
Baby-bond
All type of payment orders
Debit cards (VISA, MasterCard)
Credit cards (VISA and MasterCard)
Co-branded Credit Cards (T-Mobile,
Lufthansa, WestEnd)
Overdraft
Margin lending
Bridging loan to pension fund members
Distribution of MKB Investment funds
Government securities and equity sales
Capital and securities accounts
Cheques (issue, purchase, trading of
traveller cheques)
MKB TeleBANKer
MKB MobilBANKer
MKB NetBANKer
Safe services
MKB Pension Funds
MKB Insurance products
MKB Health Care Fund
MKB Account for retirement savings
Car and utility vehicle financing (MKBEuroleasing Ltd.)
16
Private Banking: emerges rapidly at MKB Bank
MKB Bank launched its Private Banking business line in 2003
We provide private individuals and companies with:
Complex financial service
Portfolio management
Investment advisory
Financial planning
Account keeping
based on their individual demand via dedicated private bankers
Switzerland- and Luxemburg based portfolio management
and account keeping due to cooperation agreements
The minimum entry requirement is HUF 50 million financial
savings to be invested in freely
At the end of 2008 the business line managed HUF 135 billion
assets of 1,017 customers (2007: HUF 90 billion).
Asset managed per client exceeds HUF 130M; outstanding on
the Hungarian market
Headquartered in the very heart of Budapest, Private
Banking operates with a network of local private bankers in
10 large countryside cities on top of Budapest and its
surrounding
The complete retail, wholesale and investment services product
range of MKB Bank is available for PB clients
17
Money and capital markets: continuously expanding range of products in
line with customer demands
Market share of MKB investment funds
6,0%
5,1%
Investment funds:
The increase of MKB investment funds assets and the products
range is a strategic target
NAV grew by 5% to HUF 119.6 billion. MKB was the only major fund
manager, which could increase its portfolio in the sector shrank by
about 25%
Introduction of 10 new products in 2008, 33 funds in total
5,0%
3,7%
4,0%
4,0%
2,9%
3,0%
2,2%
2,0%
1,0%
1,4%
1,5%
0,9%
0,0%
2005h1
2005h2
2006h1
2006h2
2007h1
2007h2
2008h1
2008h2
Corporate treasury and risk management products:
One of the 10 largest participants in FX trade; short term liquidity and interest risk management
Active sale of interest and exchange rate risk products (futures, option and structured products)
Securities trading and own issues:
MKB Bank is one of the main primary dealers of Hungarian government bonds and active primarily in OTC trading of
securities (and BÉT- Budapest Stock Exchange).
Major market participant in domestic public issues, renewed its domestic public issue programme in 2008. The total face
value of the 13 MKB bonds series amounted to HUF 104.3 billion in 2008; innovative, structured products primarily for retail
secondly for corporate and institutional customers; FHB mortgage bond trading, Diákhitel Központ Zrt, bond trading.
Traditionally active international capital market presence, EMTN as of 2004, programme of EUR 3 billion as of 2007 with
international rating.
Asset and portfolio management:
Asset portfolio managed for institutional and retail customers amounted to HUF 151.8 billion at the end of 2008, (4.4%
market share)
Main customers: MKB Pension Fund, other pension and health care funds, municipalities, companies, foundations, private
individuals
Custody management:
The management of HUF 1,227 billion assets at the end of 2008 primarily for institutional customers (insurance companies,
pension funds, etc.). MKB Bank is a major player.
18
Comprehensive, universal financial services through main domestic
strategic partners/subsidiaries
MKB
Pension
Fund
MKB
Health
Fund
MKB
Insurance
Companies
Strategic business for MKB Bank, the bank provides stable, long-term background and
support to the Fund
146,000 members, HUF 121 billion assets at end-2008
The 4th largest voluntary pension fund in Hungary. 11.2% market share in 2008
Per capita assets are considerably higher than the market average by 40.8% in the
voluntary scheme and by 82% in the compulsory
www.mkbnyp.hu
Launched in 2003, strategic business line
108,800 members. 13.2% market share, it became the 2nd largest in 2008
The assets amounted to HUF 6.9 billion at end-2008
Expanding partnership: 8,600 contracted health service provider, 2,850 corporate and
institutional employers
120,000 issued cards to be used at 4,545 service points
www.mkbep.hu
Jointly with BayernLB and the S-Finanz Group member Versicherungskammer Bayern MKB
established non-life and life insurance companies being operative from October 2007
The number of customers of the two Insurers exceeded 12,000 at end-2008
In 2008 a number of new life and non-life insurance products were launched:
MKB Family Home Insurance , MKB Multi-protection asset insurance, KGFB, Casco
Life insurances: MKB Kincstár, MKB Életrevaló, MKB Védıháló, MKB Értékmegırzı
By the foundation of the Insurance Companies the universality of the bank group in Hungary
became comprehensive. MKB Bank provides ‘one-stop-shop’ service
www.mkbb.hu
19
Domestic strategic partners/subsidiaries (2):
MKB-Euroleasing Group – uniquely complex services
Company group
Strategic partnership since 2001 – MKB Bank owns 50% of MKB-EUROLEASING Group.
Major market position. 2nd largest in new car financing volumes with 12.5% market share
49% share in joint venture with Toyota (Toyota Finance Hungary Ltd), unique cooperation
scheme in the Toyota world
Back office service for Toyota Finance Hungary and PSA Hungary
60,000 retail, 600 fleet customers
www.autohitel.hu,
www.euroleasing.hu,
www.gyorshitel.hu,
www.netrisk.hu,
www.hasznaltautok.hu, www.autocity.hu – portals operated by MKB-Euroleasing
Complex and uniquely integrated financial and auxiliary services by the companies of the
group
Full range of services in car trade and fleet management (car and dealer finance, service, car
trade, insurance brokerage, fleet financing)
Services
MKB-Euroleasing Car Financing
The financing of over 26,000 new cars in 2008
New lending of HUF 66 billion, 4th position, within it 2nd position in the market of new
cars
MKB-Euroleasing Fleet Management
Target: market leader position, No2 in the managed only but not financed fleet
management segment; 6.9% market share in fleet financing
Managed cars: 7,800 for 600 customers
MKB-Euroleasing Car Trade
12,000 cars sold in 2008, increasing volume
20 sales points, 11 brands, several used car lots
Buyer and dealer
financing
Fleet financing
Trade
Nr. 1. in traditional and internet insurance brokerage with a total of 416,000 customers
Traditional insurance brokerage for cars is provided by the market leader Eurorisk Kft, the
internet brokerage is provided by market leader Netrisk Kft. Altogether 244,000 casco and
mandatory motor liability insurances were realised in 2008.
Insurance
Brokerage
20
Domestic branch network of MKB Bank: personal service with nationwide
coverage
81 branches by the end of 2008 :
24 in Budapest,
8 in the agglomeration,
49 in the countryside
Regional competence centres with corporate-,
money and capital market product specialists and
private bankers
Local decision-making provides flexibility
Most efficient branch network in 2007, 2008 according to Branchmarking Ltd,
21
Alternative sales channels: expanding secured services
Electronic
banking service
PC Banker, Multicash - Online account and transaction services
Used by 15,700 corporate customers at end-2008
Over 80% of the payment transfers is performed electronically
Call Center of MKB Bank – 24 hours service for the entire clientele
most efficient call-center by Branchmarking Ltd.
MKB-TeleBANKer
15,000 corporate (35%), 137,000 retail (48%) customers
Direct contact with our colleagues or automated services
Over 106,000 retail and 30,000 corporate customers, dynamic growth
NetBroker service was launched – trading of MKB investment funds and own
issued bonds
Accounts, payment transfers, savings transactions and investment services,
credit related information
MKB-NetBANKer
MKB-MobilBANKer
ATM
External sales
partner network
Bankcard transactions, balance; continuous development of the service
SMS service about payment transactions, new products, campaigns
84 own ATMs
The availability of over 4,400 further ATMs in the country
850 selected quality agencies, sales force of 1,600
Sales to SME and retail customers
Account products, deposit and savings products, loan products, electronic
services, sale of guarantees and letters of credit
22
MKB Unionbank - Bulgaria
Overview:
Established in 1993
Current ownership structure:
60% MKB Bank
34% Union Group OOD (previous
majority owner)
6% EBRD
Universal bank with considerable experience
in financing of small and medium size
enterprises.
MKB Unionbank
2007
2008
IFRS, million EUR
Total assets
Customer loans
Customer deposits
Equity
Pre-tax profit
524.7
371.2
360.1
48.7
4.3
784.8
559.8
437.6
65.6
7.4
Pre-tax ROAE
Pre-tax ROAA
Cost to income ratio (CIR)
Capital adequacy ratio
Number of employees
7.9%
1.0%
72.1%
15.1%
722
12.6%
1.3%
60.8%
13.8%
767
Market shares
Total assets
Corporate loans
Corporate deposits
Retail loans
Retail deposits
1.74%
2.53%
2.39%
0.91%
1.21%
2.21%
2.77%
2.86%
1.23%
1.34%
EUR/BGN exchange rate: 1.95583 (2007 and 2008)
Business activity
Number of corporate customers reached
1,213 (large and medium size), the number of
retail customers (private individuals and micro
companies) amounted to 76,570 at the end of
2008.
Loans grew by 50%, while deposits grew by
21.5%. The pre-tax profit of the Bank exceeded
the 2007’ level by 72%.
In 2009 emphasis is on the prudent increase of
lending and more intensive acquisition of
customer deposits. The maintenance of the
currently excellent portfolio quality is also
priority.
Sales channels
Branch network of 58 units covers
Bulgaria.
Extension of bankcard acceptance network.
Focus on the deepening of existing customer
relationships, strengthen cross-selling.
Emerging of alternative sales channels:
Continuous improvement of the quality of
the internet banking service,
Development of mobile banking services,
Implementation of complete Call Centre
services in the medium term,
Expansion of the external sales network.
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MKB Romexterra Bank - Romania
Overview:
Established in 1993
Current ownership structure:
80.48% MKB Bank
19.52% other companies and private individuals
Universal bank with basically retail banking
profile.
Leasing activity in a separate company.
MKB Romexterra Bank
2007
2008
IFRS, million EUR
Total assets
Customer loans
Customer deposits
Equity
Pre-tax profit
Pre-tax ROAE
Pre-tax ROAA
Cost to income ratio (CIR)
Capital adequacy ratio
Number of employees
Market shares
Total assets
Corporate loans
Corporate deposits
Retail loans
Retail deposits
550.3
336.2
327.2
63.2
3.7
6.2%
0.8%
78.8%
14.0%
867
727.9
458.7
280.4
47.0
(14.5)
90.0%
9.79%
1 037
0.77%
1.13%
1.40%
0.60%
0.60%
0.87%
1.34%
1.11%
0.55%
0.54%
EURRON exchange rate: 3.6077 (2007) and 3.9852 ( 2008)
Business activity
The number of retail customers was 228,629 the
number of corporate customers was 14,121 at the
end of 2008.
Total assets of the bank grew by 50% in 2008,
however due to the deterioration of the portfolio
quality owing to some products and customer
segments the bank generated loss in 2008.
In 2009 the main emphasis is on the improvement of
the portfolio quality, attraction of customer funds and
widening of product range.
Sales channels
The bank is present in every region of the
country, the coverage increased further
2008: 80 branches (2007: 76 branches)
Emerging alternative sales channels:
Widening the range of internet and
mobile bank services, further
development of their quality,
Introduction of complete Call Center
services,
Establishing external sales agent
relationships,
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Social responsibility
Arts:
MKB Bank has a large collection of fine arts containing
a number of outstanding Hungarian artists’ works of the
19th and 20th century.
Long-term cooperation with a number of museums
(Museum of Fine Arts, National Gallery).
Long-term support of Liszt Ferenc Chamber Orchestra.
Charity activities:
Cooperation with the International
Children‘s Safety Service;
MKB scholarships to talented and
socially dependent children
Support to a number of hospitals,
schools, foundations.
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Sports sponsorships – Long-term cooperation in Winning Spirit
Handball
MKB-Veszprém handball team;
16 times Hungarian champion, EHF
Cup Winners’ winner in 2008.
Basketball
MKB-Euroleasing Sopron basketball team.
Champion team in 2008 for third time,
Hungarian Cup winner in 2008
Kayak-canoe Association
Kayak-canoe is No. 1 Olympic
sport of Hungary
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THANK YOU FOR YOUR ATTENTION!
MKB BANK ZRT.
1056 Budapest, Váci utca 38.
Budapest H-1821
MKB TeleBANKár: 06 1 373 333
06 40 333 666
Swift: MKKB HU HB
Internet: www,mkb,hu
E-mail: exterbank@mkb,hu
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