Potential benefits from planned merger with MKB and Budapest Bank to form Hungary's second-largest lender. Expected economic upswing and continued governmental lending programs create a supportive environment for the group's transformation. The group's sizable balance sheet liquidity. Despite material success to date, the group's transformation remains an operational challenge. Weak capacity to generate internal capital because of low profitability and poor cost efficiency, which are improving, but not yet sufficient to support the group over the cycle. Recent losses and strong growth depleted the capital buffer, which is unlikely to recover in the medium term. The developing outlook on MTB reflects our view that we may raise, lower, or affirm the long-term rating on Takarék Group over the next 12
