FHB Land Credit and Mortgage Bank Company, a specialised credit institution, was established in October of 1997 with a share capital of HUF 3 milliard by four banks (Magyar Befektetési és Fejlesztési Bank Rt., Mezőbank Rt., Postabank és Takarékpénztár Rt., Pénzintézeti Központ Bank Rt.) and the Ministry of Finance. By establishing the Bank, the goal of the founders was to establish long-term financing, to create opportunities for long-term investment, and to promote the development of the real estate market. The Bank was granted a license of operation by the Hungarian Financial and Capital Market Supervisory Agency (the predecessor of HFSA) in March 1998.
In its first year of operation, the FHB managed to gain a foothold on the Hungarian banking market, developed its strategy and clientele, and secured nationwide accessibility to mortgage loans. It developed a gradually evolving and refining range of products that are in line with the terms of the capital market and customer needs. FHB played an important role in the realization of the Government's housing subsidy program launched in 1999. By the end of 2001 the Bank became a significant player of the Hungarian housing loan market via its own lending and via the cooperation in household lending with commercial banks and saving cooperatives. The 2001 amendment of the Act on Mortgage Loan Credit Institutions and on Mortgage Bond provided for the refinancing of commercial banks’ mortgage loans by purchasing independent liens. As a result, FHB has signed a framework agreement for refinancing with nine commercial banks, and by the end of 2005 refinancing loans contributed almost 60% of the total mortgage loan portfolio.
The Bank’s own loans and refinanced loans are funded from the mortgage bonds issued by FHB. In the spring of 2001 the mortgage bonds of the Bank were introduced to the Budapest Stock Exchange. Because of the limitations of the domestic capital market demands and conditions the Bank registered an international mortgage bond program in Luxemburg with 1 milliard Euros. Based on the decision of the general meeting of the European Mortgage Federation brought on November 29, 2001, FHB became an associated member of the organization.
The privatization of FHB started in 2003: the share of ÁPV Rt. (State Privatization and Holding Co.) decreased to 53,2%. The Bank’s ordinary shares of Series “A” were put on the trading list of the Budapest Stock Exchange Category “A” shares. FHB share has been members of the BUX basket since April 1, 2004.
The Bank introduced its New Strategic Plan in February 2006 to expand its banking activity and branch network. The Bank set up new subsidiaries, among them the FHB Commercial Bank Ltd., thereby significantly expanding the range of services provided by FHB Group. The strategic partnership program with Allianz was adopted by the Board of Directors of FHB Mortgage Bank, the plan included the acquisition of the Allianz Bank, which merged into the FHB Commercial Bank Ltd in 2011. The Board of Directors also approved “The bank of the families” concept, meaning a customer- and service-driven sales attitude. In 2013, FHB Mortgage Bank managed several acquisitions, there through broadened the Banking Group and the range of activities. It included the acquisition of Diófa Alapkezelő Zrt. (Diófa Fund Management Ltd.), the purchase of the Díjbeszedő Operational and Service Limited Liability Company, hereinafter the “DÜSZ”), that come into being after a demerge from Díjbeszedő Holding Ltd. (DBH), the Díjbeszedő Faktorház Co. Plc. (“DBF”), DíjNET Ltd., Díjbeszedő Informatikai Ltd. (“DBIT”) and the portion of the ownership of the Magyar Posta (Hungarian Post). Related to the transaction of the business shares, FHB and the Magyar Posta (Hungarian Post) entered into a strategic cooperation, and in the scope of that they shall cooperate in the ownership and control of some of their jointly controlled companies, furthermore in course of the harmonization of their business activities.
At the beginning of 2014 FHB Mortgage Bank Plc. acquired 25% shares in Magyar Takarék Asset Management Ltd. by capital increase, through which FHB Mortgage Bank obtained 13,76% indirect qualifying holding in Bank of Hungarian Savings Cooperatives Co. Ltd. (hereinafter the Takarékbank). Based on the Act CXXXV of 2013 on integration of cooperative financial institutions and modification of certain rules on economic issues (Szhitv), FHB Mortgage Bank Plc. and under its qualifying holding and prudential supervisory FHB Commercial Bank Ltd. became a member of Integration Organisation of Cooperative Credit Institution (SZHISZ) in September 2015, and also the member of the Guarantee Group of Cooperative Credit Institutions, and a member of the country’s fourth largest banking group. FHB Mortgage Bank Co. Plc. at the end of December 2015 increased its share capital with HUF 4,249 billion face value, or HUF 30.5 billion issue value. Capital increase was executed by issuing dematerialized dividend preference shares (Series “B”) and registered, dematerialized ordinary shares (Series “C”). The new shares (Series “B” and Series “C”) were not listed on the Budapest Stock Exchange, they were purchased by the members of the Integration.
The shareholder structure of the Company has changed significantly in the last quarter of 2016. On 14 October 2016 A64 Vagyonkezelő Ltd. sold its shares in the Company over the counter to B3 Takarék and Fókusz Takarék, then on 9 December 2016 Bank of Hungarian Savings Cooperatives Co. Ltd. (Takarékbank) bought the block of shares of VCP Finanz Holding Ltd. As a result, the Takarékbank and the cooperative credit institutions obtained more than 68% of the shares of the Company by the end of the year.
Accommodation of the FHB Mortgage Bank and FHB Commercial Bank within the Integration of Cooperative Financial Institutions began in autumn of 2015 finished in 2017. As a part of the procedure changing the organizations in line with the Strategy of the Integration started in 2017. As a first step, the FHB Mortgage Bank was reshaped to a simple profile mortgage bank, with remaining issuance and refinance functions, and all other human resources and capacities were transferred to the Takarékbank and the FHB Commercial Bank. On 27 June 2017 General Assembly of the Takarékbank accepted the 5-year strategy of the Integration. The function of the central financial institution will be solely performed by Takarékbank; the FHB Mortgage Bank’s current group management functions will be passed over to the Takarékbank. According to the plans, the satellite institutions of the Integration, including the mutual fund management, factoring and leasing service suppliers will be directly subordinated to the Takarékbank.
FHB Mortgage Bank – pursuing the Strategy – acquired 25.1% of shares in the MATAK (Hungarian Savings Investment and Asset Management Ltd.) by capital increase with HUF 253 million nominal value in 12 December 2017. On 27 December 2017 FHB Mortgage Bank sold the FHB Ingatlan Ltd. and the Takarék Invest Befektetési és Ingatlankezelő Ltd. to the Takarékbank. According to the Syndication Contract, Takarék Invest Befektetési és Ingatlankezelő Ltd. and its subsidiary and joint ventures companies (Díjbeszedő Holding Ltd. (DBH), the Díjbeszedő Faktorház Co. Plc. (“DBF”), DíjNET Ltd., Díjbeszedő Informatikai Ltd. (“DBIT”), Magyar Posta (Hungarian Post) and FHB Leasing Ltd.) were transferred to the Takarékbank. On 29 December 2017 the shares of 88.29% of Diófa Asset Management Ltd. were sold to the Takarékbank.
The FHB Bank Group is undergoing a significant reorganization and restructuring. The aim of this process is to fully integrate the FHB Banking Group into the Takarék Group and to create a new, efficient, transparent, non-parallel organizational structure and cooperation between the leading departments of the Takarék Group. According to the business strategy accepted by the Takarék Group on 27 June 2017, the function of the central institution will be solely performed by Takarékbank, the tasks of commercial banks will be performed by the Takarék Commercial Bank (formerly FHB Commercial Bank ), while the FHB Mortgage Bank performs exclusive mortgage operating. In accordance with the above strategy, the Takarék Commercial Bank becomes the flagship of the Takarék Group, while the Mortgage Bank becomes the second largest mortgage bank in the Hungarian market.