MBH 4Q25 Review
- MBH Bank's adjusted net income decreased by 10.9% YoY to 204Bn (2024: 229Bn), primarily due to lower net interest income and continued high costs associated with sizeable IT integration cost.
- Adjusted return on equity (ROE) was 17.5% in 2025 (2024: 20.7%), decreasing partly due to lower revenue and partly due to higher shareholders' equity (+12.2% YoY at 1 261Bn). Earnings per share (EPS) came in at 512 (2024: 618), which, in addition to the lower profit, was also pulled down by the increased average number of shares following the issuance of 7% (22.6 million units) in treasury shares.
- During the December 2025 share issuance, 22 577 074 shares were sold, of which 20 320 846 shares were transferred to retail investors (2 970 forint / share) and 2 256 228 shares to institutional investors (3 300 forint / share). The net cash proceeds from the share sale amounted to 66Bn.
- Total assets increased by 3.2% YoY to 12 890Bn, compared to which both the net loans (+3.7% YoY to 6 346Bn) and the deposit portfolio (+3.6% YoY to 8 344Bn) grew at a faster pace.
- MBH Bank published its dividend policy in December 2025, which aims for the payment of a stable, YoY increasing dividend per share. During 2025, the bank paid out 37Bn in dividends.
- Our 12-month target price is 3 854 forints with a Buy recommendation, considering the closing price of 3 030 on 2026.04.01. Growth continues to be supported by market expansion in domestic mortgage and personal loans, but integration costs related to the merger of the three banks continue to put pressure on profitability. Based on the bank's valuation multiples, the current pricing appears to be a good entry point; however, the aforementioned cost optimization will be necessary for the share price to trade at multiples closer to its peers.