MBH 2026 Q2 Review
- MBH’s adjusted net income decreased to 20.7Bn in Q2 2026 vs 54.1Bn in Q1 2026 and 35.3Bn in Q2 2025, reflecting moderating interest rate environment, decreasing net interest income and increasing operating costs.
- Adjusted return on equity (ROE) decreased to 12.2% in H1 2026 (Q2 2026: 6.75%; H1 2025: 17.3%), reflecting the decrease in earnings. With our estimated cost of equity above 14% exceeding ROE, the P/B of 0.73x (below 1.0x) is consistent with the market pricing returns below the cost of capital. The seemingly elevated trailing P/E ratio of 9.2x is mostly the result of depressed earnings, which have fallen faster than the share price.
- Our 12-month target price is 3 854 forints with Buy recommendation, considering the 47% appreciation potential based on the closing price of 2 590 as of 2026.09.02. The current P/B ratio of 0.73x (based on 3 596 book value / share) is well below the forward-looking expectation of ~1.0x in our model. Growth continues to be supported by market expansion in domestic mortgage and personal loans, but integration costs related to the 3 banks merger still levated.
- Mid-term (2030) management guidance points toward: annual business volume growth of 10%+ CAGR for 2025-2030; ROE >15%; Cost / Income ratio <55%; Risk Cost Ratio <0.6%; and Dividend Payout Ratio ~50%.
- The General Meeting (2026.04.27) resolved that no dividends to be paid following the 40Bn package proposed (124 / share) in regards to the 2025 results, and that the distributable profit is to be transferred to retained earnings.