Tight integration into the group of Hungarian savings bank cooperatives, with a joint and several guarantee by all member banks. Strong capitalization following government contribution of capital to the group. Stronger funding and liquidity profile than the Hungarian banking system average. Still challenging operating conditions in Hungary, particularly sluggish credit demand. Weak capacity to generate internal capital, due to weak profitability and efficiency. Asset quality weaker than peers, with geographic concentration in Hungary. The positive outlook on Takarekbank reflects our expectation that the continuing integration and restructuring of the group is likely to lead to a gradual improvement of the group's performance and internal capital generation capacity, which we expect to become visible over the next 12 months. The bank
