A4 für Copyshop GB.indd - Bayerische Landesbank

66 BayernLB – our company
Magyar Külkereskedelmi Bank Rt. (MKB) –
Hungarian Foreign Trade Bank, Budapest
The Budapest-based Magyar Külkereskedelmi Bank Rt. (MKB) represents BayernLB’s
bridgehead in Eastern Europe, and forms an integral part of the strategy for Eastern
Europe approved by the BayernLB Board of Management at the end of 2004. Hungary’s
accession to EU on 1 May 2004 constitutes an important milestone which will enhance
the already close trade relations between Hungary and Germany.
Business with corporate customers is one of the traditional strengths of MKB, which
operates as a universal bank. Its customers include leading large Hungarian corporates
as well as SMEs. MKB represents a reliable and competent partner for these firms.
MKB is market leader in project financing in Hungary. The bank’s retail business has
achieved considerable importance. The incorporation of Konzumbank, acquired at
the end of 2003 and legally merged with MKB as per 1 July 2004, has allowed MKB to
expand its market position further. As at year-end 2004, the bank reported a market
share of 5.7 percent in deposits and 3.5 percent in loans in the private customer seg-
ment. The current network of branches, comprising 52 retail outlets, is to be expanded
to around 80 locations by 2007. With a view to reinforcing sales activities, MKB is con-
tinuing to focus on close cooperation with strategic partners such as Allianz Hungária
and T-Mobile. MKB offers private customers an exceptionally broad range of services.
Unique, innovative products on the Hungarian market, such as home and consumer
loans as well as bank cards denominated in euro, put the finishing touches to the
range on offer.
MKB and BayernLB operate in close cooperation on the market. Thus, for example, a
Public Private Partnership funding transaction with great significance in Hungary was
concluded, as was a debt issuance programme with a volume of EUR 1 billion for MKB.
BayernLB acted as lead manager for the latter transaction.
MKB is the partner of choice for German saving banks in Hungary. A cooperative agree-
ment with the largest German savings banks (known as the “G25” group) supports this
market strategy. Competent contact partners now staff a “Bayern Desk” dedicated to
serving the Bavarian savings banks and their customers.
In 2004, MKB’s total assets – including those stemming from the acquisition of Konzum-
bank – increased by 27.7 percent to reach EUR 5.9353 billion. At EUR 74.0 million, pre-
tax profit was 10.0 percent up on the previous year’s figure.
For 2005, MKB anticipates increased demand in a number of areas, namely corporate
credit in the areas of import and export, state Public Private Partnership projects and
EU infrastructural funding. The principal objective for 2005, besides the acquisition of
new retail customers, is increasing the profitability of existing customer relationships.