Moody's Investors Service has reaffirmed MBH Bank's investment-grade ratings with a stable outlook, including its long-term and short-term bank deposit ratings and senior unsecured MTN programme and debt ratings on August 22.

The rating agency highlighted the bank's growing profitability, bolstered by the acquisition of a majority stake in home savings bank Fundamenta in 2023, which has led to significant synergies and cross-selling opportunities.  MBH bought a majority stake in the home savings bank last year

The bank's largely deposit-based funding profile, strong deposit base, and significant liquidity reserves were also seen as supportive factors for its stable credit rating.

Moody’s said the bank's credit profile and funding structure are expected to remain largely unchanged over the next 12-18 months.

The rating agency also pointed out the improving asset quality of the lender and said that its substantial loan loss reserves provide reliable protection against the risks associated with government-imposed interest rate caps.

MBH Bank said Moody's confirmation of its debt rating reflects the bank's improving financial profile and stability.

MBH Bank finalized a three-way merger in April, combining three mid-sized banks, MKB Bank, Takarekbank, and Budapest Bank into the second-largest commercial bank behind OTP with HUF11.8 trillion (€30bn)in assets, serving 2.5mn clients. The stock of deposits reached HUF7.6 trillion and the loan portfolio is over HUF5.6 trillion.