Mbank Sa · GPW:MBK
Mbank Sa — Q1 2025 Earnings Presentation
53 slides from Mbank Sa's earnings presentation, Apr 30, 2025
Slide 1: Results of mBank Group Q1 2025
Results of mBank Group Q1 2025 Positive trends continued into new year Presentation for Investors and Analysts, 30.04.2025
Slide 2: Key highlights and business development in Q1 2025
Key highlights and business development in Q1 2025 Overview of the financial performance after Q1 2025 Update on Poland’s macroeconomic situation and outlook 2
Slide 3: Key highlights of Q1 2025 in mBank Group
Key highlights of Q1 2025 in mBank Group Accelerating growth Total revenues kept above Best-in-class operating of loan portfolio the quarterly threshold of efficiency despite higher in both corporate PLN 3 billion, driven by still annual contributions to and retail segment strong core income the Ban
Slide 4: Key highlights of Q1 2025 in mBank Group
Key highlights of Q1 2025 in mBank Group Declining legal provisions High reported net result at Significant surplus over for FX mortgage loans the level of PLN 706 million minimum capital amid downward trends in accompanied by the requirements ensuring safe new and pending lawsuits outstanding profi
Slide 5: Top-3 credit rating agencies upgraded assessment of mBank
Top-3 credit rating agencies upgraded assessment of mBank S&P Global Ratings Moody's Ratings Fitch Ratings Date of rating action: 27.02.2025 Date of rating action: 10.04.2025 Date of rating action: 22.04.2025 “The upgrades of the VR and IDRs are “The upgrade of mBank's BCA to driven by a substantial
Slide 6: Overview of the financial performance after Q1 2025
Key highlights and business development in Q1 2025 Overview of the financial performance after Q1 2025 Update on Poland’s macroeconomic situation and outlook 6
Slide 7: Summary of financial results: Profit and Loss Account
Summary of financial results: Profit and Loss Account PLN million Q1 2024 Q4 2024 Q1 2025 ∆ QoQ ∆ YoY Net interest income 2,340.1 2,512.9 2,438.7 -3.0% +4.2% Net fee and commission income 484.1 497.3 503.1 +1.2% +3.9% Net trading and other income 97.9 34.3 88.1 +157.1% -10.0% Total income 2,922.1 3,
Slide 8: Summary of financial results: Balance Sheet
Summary of financial results: Balance Sheet PLN million Q1 2024 Q4 2024 Q1 2025 ∆ QoQ ∆ YoY Total assets 224,157 245,957 246,068 0.0% +9.8% Gross loans to customers 120,001 124,985 131,434 +5.2% +9.5% Individual client loans 66,634 70,589 71,546 +1.4% +7.4% Corporate client loans 1 51,715 53,222 55,
Slide 9: Quarterly results of mBank Group – New lending business
Quarterly results of mBank Group – New lending business Good level of mortgage loan sales, accompanied by rising consumer and corporate credit Sales of mortgage loans Sales of non-mortgage loans Sales of corporate loans PLN million PLN million PLN million mBank PL mBank CZSK mBank PL mBank CZSK by s
Slide 10: Quarterly results of mBank Group – Loans to customers
Quarterly results of mBank Group – Loans to customers Accelerating growth of loan portfolio in both corporate and retail business segment Development of mBank Group’s gross loans Market shares in loans PLN million in Poland +10% households enterprises +5% ∆ QoQ ∆ YoY total loans w/o FX total loans 1
Slide 11: Quarterly results of mBank Group – Customer deposits
Quarterly results of mBank Group – Customer deposits Deposit base fuelled by inflows to retail accounts, seasonal decline of corporate funds Development of mBank Group’s deposits Market shares in deposits PLN million in Poland +10% households enterprises 0% ∆ QoQ ∆ YoY current deposits current depos
Slide 12: Quarterly results of mBank Group – Capital position
Quarterly results of mBank Group – Capital position Safe capital situation with significant surplus over minimum regulatory requirements Development of mBank Group’s capital ratios Development of mBank Group’s total risk exposure amount Tier 1 capital ratio AT1 Tier 2 PLN million +4.27 ∆ YoY 17.03%
Slide 13: Quarterly results of mBank Group – Total income
Quarterly results of mBank Group – Total income Total revenues maintained above PLN 3 billion, thanks to still strong core income Development of mBank Group’s total income Development of net interest margin PLN million quarterly data, excluding impact of “credit holidays” other operating income in Q
Slide 14: Quarterly results of mBank Group – Total costs and efficiency
Quarterly results of mBank Group – Total costs and efficiency Operating expenses affected by BFG contributions, cost/income ratio kept at excellent level Development of mBank Group’s operating costs Cost/Income ratio of mBank Group PLN million excluding impact of “credit holidays” and a refund by KU
Slide 15: Quarterly results of mBank Group – Credit losses and cost of risk
Quarterly results of mBank Group – Credit losses and cost of risk Credit provisioning oscillated at similar level, translating into stable risk costs Net impairment losses and fair value change on loans mBank Group’s cost of risk, by segment PLN million basis points (bps) 58 62 57 +244% 53 191.1 -6%
Slide 16: Quarterly results of mBank Group – Loan portfolio quality
Quarterly results of mBank Group – Loan portfolio quality Good asset quality confirmed by risk metrics, NPL ratio supported by sale of impaired loans mBank Group’s impaired loans portfolio mBank Group’s NPL ratio PLN million 4.3% NPL ratio +0.9% 4.1% 4.1% 4.1% according to EBA 3.8% definition has -1
Slide 17: Quarterly results of mBank Group – Legal risk of CHF portfolio
Quarterly results of mBank Group – Legal risk of CHF portfolio Further progress with settlements, declining number of new and pending court cases Settlements concluded by mBank New CHF-related court cases CHF loan contracts in court with CHF borrowers, cumulative number number of contracts entering
Slide 18: Quarterly results of mBank Group – Legal risk of CHF portfolio
Quarterly results of mBank Group – Legal risk of CHF portfolio Effective management of CHF portfolio allowed to further reduce balance sheet risks Value of CHF mortgage loans Decomposition of CHF loan contracts at mBank granted to natural persons, PLN million, net number of contracts, as of 31.03.20
Slide 19: Quarterly results of mBank Group – Profitability of the core business
Quarterly results of mBank Group – Profitability of the core business Excellent performance of core operations evidences strength of mBank’s franchise Summary of financial results for mBank’s core activity and run-off portfolio in Q1/25 Profitability of mBank Group PLN million PLN million Core Busin
Slide 20: Key take-aways after Q1 2025
Key take-aways after Q1 2025 We delivered: rising new sales of retail loans and acceleration of corporate financing translate into dynamic growth of credit portfolio high profitability of the business as outstanding performance of core operations compensates continued provisioning against legal risk
Slide 21: Update on Poland's macroeconomic situation and outlook
Key highlights and business development in Q1 2025 Overview of the financial performance after Q1 2025 Update on Poland’s macroeconomic situation and outlook 21
Slide 22: Macroeconomic situation in Poland
Macroeconomic situation in Poland NBP is about to cut rates in 2025 as inflation starts declining. Consumption growth is likely to stay stable Unemployment rate (still) very low 20 12% 10 10% 0 8% -10 6% -20 4% -30 -40 2% Source: GUS Source: GUS -50 0% Jan.16 Jan.17 Jan.18 Jan.19 Jan.20 Jan.21 Jan.2
Slide 23: Macroeconomic situation in Poland
Macroeconomic situation in Poland Credit growth is recovering. Bond yields decline, zloty depreciates. Corporate loans and deposits (YoY, FX-adjusted) Household loans and deposits (YoY, FX-adjusted) 30% 14% Source: NBP 12% Source: NBP 25% 10% 20% 8% 15% 6% 10% 4% 5% 2% 0% 0% -2% -5% -4% -10% -6% Jan
Slide 24: Macroeconomic forecasts and outlook for Poland
Macroeconomic forecasts and outlook for Poland Operating environment for banks has continued being challenging and uncertain Key economic indicators for Poland Main factors driving the performance in 2025 2022 2023 2024 2025F 2026F ▪ GDP growth is expected to reach 3.8%, which GDP growth (YoY) 5.3%
Slide 25: Outlook for mBank Group for 2025
Outlook for mBank Group for 2025 We expect: total revenues to be above PLN 11 billion, but slightly lower than in 2024 1 capital base to increase further thanks to planned Tier 2 issuance and strong profit generation both corporate loans and retail credit portfolio to rise above the market legal ris
Slide 26: Appendix
Appendix 26
Slide 27: Selected Financial Data
Selected Financial Data Consolidated Profit and Loss Account – quarterly Quarterly results (PLN thou.) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Net interest income 2,340,082 2,164,656 2 571,355 2,512,930 2,438,716 Net fee and commission income 484,127 491,227 499,244 497,286 503,086 Dividend income 2
Slide 28: Selected Financial Data
Selected Financial Data Consolidated Statement of Financial Position – quarterly Assets (PLN thou.) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Cash and balances with Central Bank 24,535,807 21,707,034 25,893,176 36,680,926 16,722,455 Loans and advances to banks 12,054,848 11,577,948 17,503,613 9,738,45
Slide 29: Selected Financial Data
Selected Financial Data mBank Group’s Ratios – quarterly and cumulatively Financial Ratios Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Net Interest Margin, quarterly 4.37% 4.44% 4.31% 4.27% 4.23% Net Interest Margin, YtD 4.37% 4.41% 4.37% 4.35% 4.23% Net Interest Margin, excl. CHF portfolio, YtD 4.43% 4
Slide 30: Quarterly results of mBank Group – Net interest income
Quarterly results of mBank Group – Net interest income Small decline of net interest income due to shorter quarter, while funding costs contained Structure of mBank Group’s interest income Structure of mBank Group’s interest expense PLN million PLN million Presented development is adjusted for the i
Slide 31: Quarterly results of mBank Group – Net fees and commissions
Quarterly results of mBank Group – Net fees and commissions Uptick of net fees driven by higher income from brokerage activity and payment cards Structure of mBank Group’s fee and commission income Structure of mBank Group’s fee and commission expense PLN million PLN million +7.2% +12.8% -0.9% -4.0%
Slide 32: Selected Financial Data – Balance sheet analysis
Selected Financial Data – Balance sheet analysis Structure of mBank Group’s total assets Structure of mBank Group’s liabilities and equity PLN billion PLN billion 246.0 246.1 246.0 246.1 238.6 238.6 230.3 24.6 10% 230.3 17.8 18.5 8% 224.2 224.2 15.3 32.9 44.0 14.6 9.5 11.3 5% 29.2 14.1 11.0 2.7 1.9
Slide 33: Selected Financial Data – Structure of loans and deposits
Selected Financial Data – Structure of loans and deposits Structure of mBank Group’s gross loans, by client segment and industry Structure of mBank Group’s deposits 31.03.2025 31.03.2025 Real estate 5.5% Financial activities 4.6% 0.1% 0.4% Building industry 3.9% 17.8% Food sector 2.7% 12.3% 21.4% Po
Slide 34: Selected Financial Data – Funding profile
Selected Financial Data – Funding profile Structure of mBank Group’s funding Summary of mBank’s long-term funding instruments 31.03.2025 31.03.2025 Nominal Issue Maturity Currency Tenor Coupon Other value date date Subordinated liabilities 5.0% 0.8% Retail Issues under Euro Medium Term Note (EMTN) P
Slide 35: Selected Financial Data – Capital requirements and liquidity
Selected Financial Data – Capital requirements and liquidity Regulatory capital requirements for mBank Group 31.03.2025 Countercyclical Capital Buffer (CCyB), calculated as the weighted average of the CCyB +4.27 pp rates that apply in the countries where the relevant credit exposures are located. Sy
Slide 36: Selected Financial Data – Fulfilment of MREL requirements
Selected Financial Data – Fulfilment of MREL requirements Development of mBank Group’s MRELTREA ratio Development of mBank Group’s MRELTREA Subordinated ratio +3.89 +4.07 23.63% 23.58% 24.05% 24.73% 22.77% 22.73% 22.50% 23.10% 22.40% 20.91% 18.51% 16.84% 3.15% 3.15% 15.36% 13.69% 03/24 06/24 09/24 1
Slide 37: Overview of customer activity and process digitalisation
Overview of customer activity and process digitalisation Users of mobile application Users of PFM functionalities Monthly active users (MAU) Corporate clients number of active users logging number of unique users, number of users performing number of customers serviced into every month, thousand tho
Slide 38: A leading mobile banking offer for individual clients
A leading mobile banking offer for individual clients Well-designed functionalities for client convenience Mobile application’s dashboard and basic features fully remote account opening with e-ID or a selfie and agreement approved via a text message easiest way to manage logging in and confirmation
Slide 39: Retail Banking – profit and network
Retail Banking – profit and network Profit before income tax of the segment Number of Retail Service Locations mBank CZSK PLN million excluding impact 0 mBank CZSK Poland of "credit holidays“ -7% 352 348 352 mFinanse1 -4% -4% 45 43 45 1,100.3 1,173.2 1,187.2 41 40 40 mKiosks 1,067.6 1,026.1 68.6 52.
Slide 40: Retail Banking – business volumes
Retail Banking – business volumes Development of gross loans to retail banking clients Development of deposits from retail banking clients PLN million PLN million +7.4% +1.4% +11.7% +1.5% 70,589 71,546 69,700 142,248 144,402 66,634 67,417 137,421 133,583 259 296 129,268 293 275 24,677 17% 23,396 33%
Slide 41: mBank in the Czech Republic and Slovakia
mBank in the Czech Republic and Slovakia Gross loans and share in total mBank’s retail volume Deposits and share in total mBank’s retail volumes PLN million PLN million +4% 12.8% 11.8% +11% 0% 0% 8,813 8,946 8,994 9,153 9,153 16,631 16,910 17,033 17,033 15,379 2,902 2,963 3,009 3,052 3,052 4,377 4,2
Slide 42: mBank in the Czech Republic and Slovakia
mBank in the Czech Republic and Slovakia Mortgage loans Non-mortgage loans Customer deposits CZK million CZK million CZK million Czech -5% +29% +15% Republic +1% physical network: +8% +2% light 7 branches 23,487 22,303 22,419 financial 12,633 13,615 66,114 74,819 76,201 7 10,529 centres 16 mKiosks 0
Slide 43: Best digital banking services for corporate clients
Best digital banking services for corporate clients First-class digital banking offer for companies Mobile application’s dashboard and basic features entirely digital onboarding process, ▪ option to activate the app with a QR code with no in-person contact and printouts required ▪ possibility to log
Slide 44: Corporate & Investment Banking – profit and network
Corporate & Investment Banking – profit and network Profit before income tax of the segment Number of corporate service locations – 31.03.2025 PLN million 2 2 Pomorskie 1 2 -12% 2 Zachodnio- Warmińsko- Mazurskie Pomorskie 1 1 2 1 -10% 29 mBank’s branches, Kujawsko- Podlaskie Pomorskie 4 2 incl. 13 a
Slide 45: Corporate & Investment Banking – business volumes
Corporate & Investment Banking – business volumes Development of gross loans to corporates and public sector Development of deposits from corporates and public sector PLN million PLN million +4.5% +12.2% +10.1% -4.0% 59,888 58,561 57,543 57,803 56,079 1,299 56,215 54,396 6,882 53,799 53,949 1,789 1,
Slide 46: Performance of main subsidiaries of mBank
Performance of main subsidiaries of mBank specialised mortgage bank offered financing in the form of offered services include and active issuer of covered leasing of cars, trucks, machinery domestic and export recourse bonds on both domestic and real estate as well as car and non-recourse factoring
Slide 47: ESG is well embedded in mBank Group's strategy (1/2)
ESG is well embedded in mBank Group's strategy (1/2) Environmental pillar ESG ratings 1 Reducing greenhouse gases (GHG) emissions of our loan portfolio, steered by SBTi as the most prominent driver to become net-zero ▶ transform our loan portfolio to reach net-zero by 2050 Partnering with our client
Slide 48: ESG is well embedded in mBank Group's strategy (2/2)
ESG is well embedded in mBank Group's strategy (2/2) Social pillar Governance pillar Providing an attractive work environment that ensures Enhancing our corporate governance by ESG aspects diversity, equity and inclusion ▶ ensure gender balance in the succession program ▶ have all TOP 100 managers (
Slide 49: Historical financial results of mBank Group
Historical financial results of mBank Group PLN million 2020 2021 2022 2023 2024 ∆ YoY Net interest income 4,009.3 4,126.3 5,924.0 8,873.5 9,589.0 +8.1% Net fee and commission income 1,508.3 1,867.8 2,120.1 1,915.9 1,971.9 +2.9% Net trading and other income 349.2 117.1 -187.2 12.9 446.0 +3345% Total
Slide 50: Strategic financial targets of mBank Group
Strategic financial targets of mBank Group Strategic financial targets of mBank Group for 2023-2025 compared to results for Q1 2025 strategic measure target level execution in Q1 2025 ✓ supported by high Efficiency [in 2025] Cost/Income ratio (C/I) below 40% 33.9% interest rates offsetting inflation
Slide 51: mBank's share price performance
mBank’s share price performance Polish banking stocks surged considerably in Q1/25 on strong sentiment improvement mBank’s index membership and weights mBank’s share performance v. main indices (rebased to 100) as of 31.03.2025 125 mBank’s share price WIG20 3.033% 120 31.03.2024 740.2 +18.5% MIN (28
Slide 52: Disclaimer
Disclaimer This presentation has been prepared by mBank S.A. for information purposes only and is based on the Condensed Consolidated Financial Statements for the first quarter of 2025, prepared under the International Financial Reporting Standards. For more detailed information on mBank S.A. and mB
Slide 53: Contact details
Contact details Karol Prażmo Managing Director for Treasury and Investor Relations +48 607 424 464 karol.prazmo@mbank.pl Joanna Filipkowska Head of Investor Relations +48 510 029 766 joanna.filipkowska@mbank.pl Paweł Lipiński +48 508 468 023 pawel.lipinski@mbank.pl Marta Polańska +48 508 468 016 mar