Slide 1: Results of mBank Group Q3 2024
Results of mBank Group Q3 2024 Record revenues and decent net profit Presentation for Investors and Analysts, 31.10.2024
Slide 2: Key highlights and business development in Q3 2024
Key highlights and business development in Q3 2024 Overview of the financial performance after Q3 2024 Update on Poland’s macroeconomic situation and outlook 2
Slide 3: Key highlights of Q3 2024 in mBank Group
Key highlights of Q3 2024 in mBank Group Total revenues at the record level exceeding PLN 3 billion Net interest income Net fee income thanks to rising net interest income and improving net fees +1.6% QoQ1 +1.6% QoQ Continued best-in-class efficiency supported by disciplined Total costs Cost/Income
Slide 4: Summary of key financial metrics for mBank Group
Summary of key financial metrics for mBank Group Total income Cost/Income ratio 1 Net profit of Core Business 2 ROE of Core Business 2 PLN M excluding impact PLN M excluding impact excluding impact of "credit holidays" of "credit holidays" of "credit holidays" -1.1pp +16% +29% +5.7pp 28.4% 27.3% 9,1
Slide 5: Development of mBank Group's offer and new solutions in Q3 2024
Development of mBank Group’s offer and new solutions in Q3 2024 Pension calculator implemented “mOkazje zakupy” has entered Option of deferred payments, in mBank's mobile application the next phase with more known as BNPL, added to to assess needed savings customers and products mBank’s Paynow ▪ Thr
Slide 6: Client base and market position of retail and corporate banking
Client base and market position of retail and corporate banking Number of retail clients (thou.) Market shares - Households mBank only, without Kompakt Finanse due to current deposits 9.5% term deposits 6.0% closing of +202 -30 dormant 9.1% accounts 8.8% 8.7% 8.7% 5,514 5,642 5,716 5,686 8.7% 8.4% 8
Slide 7: mBank remains a front-runner in mobile banking adoption
mBank remains a front-runner in mobile banking adoption Number of active users of mBank’s mobile application 1 Number of unique users of mBank’s PFM functionalities thousand thousand, in Poland +143 by the share +686 +233 2,960 3,338 3,646 478 3,789 500 #1 of mobile users in total retail +177 1,649
Slide 8: Summary of financial results: Profit and Loss Account
Summary of financial results: Profit and Loss Account PLN million Q3 2023 Q2 2024 Q3 2024 ∆ QoQ ∆ YoY Net interest income 2,284.7 2,164.7 2,571.4 +18.8% +12.5% Recurrent net interest income 2,284.7 2,421.5 2,461.3 +1.6% +7.7% Impact of “credit holidays” 0.0 -256.8 110.1 -/+ - Net fee and commission
Slide 9: Summary of financial results: Balance Sheet
Summary of financial results: Balance Sheet PLN million Q3 2023 Q2 2024 Q3 2024 ∆ QoQ ∆ YoY Total assets 225,389 230,296 238,574 +3.6% +5.8% Gross loans to customers 121,419 124,960 127,504 +2.0% +5.0% Individual client loans 67,829 67,417 69,700 +3.4% +2.8% Corporate client loans 1 50,033 52,655 53
Slide 10: Safe capital position with significant surplus over regulatory minima
Safe capital position with significant surplus over regulatory minima Development of mBank Group’s capital ratios Development of mBank Group’s MREL (TREA) ratio Tier 1 capital ratio Tier 2 MREL requirement CBR calculated on TREA (w/o mBH) as of 09/24 +4.31 16.89% 17.04% +4.75 16.22% 16.24% 26.29% 25
Slide 11: Third successful EUR-denominated green bond issuance by mBank
Third successful EUR-denominated green bond issuance by mBank Transaction details Distribution by investor location Format Green Senior Preferred Notes United Kingdom Issue size EUR 500 M 5% 5% 3% DACH countries Issue rating BBB (S&P) / BBB- (Fitch) 7% 34% Poland Settlement date 27.09.2024 BeNeLux O
Slide 12: First Polish broadly distributed Additional Tier 1 offering
First Polish broadly distributed Additional Tier 1 offering Structure of the AT1 instrument – transaction details Investment thesis Type Additional Tier 1 bonds ▪ The transaction will represent innovation by mBank in Issue size up to PLN 1,500 M capital markets in Poland, following other landmark Is
Slide 13: Protection against legal risks of CHF portfolio further strengthened
Protection against legal risks of CHF portfolio further strengthened Value of CHF mortgage loans to natural persons (PLN M, net) Decomposition of CHF loan contracts at mBank, as of 30.09.2024 23.6% 22.1% portfolio deductions due to legal risks -76.4% 17.1% 14.7% % of total loan portfolio 85,520 12.2
Slide 14: Progress with settlements, declining number of new court cases
Progress with settlements, declining number of new court cases Number of settlements concluded by mBank (cumulative) Number of CHF loan contracts in court (pending cases) active contracts repaid contracts All active loan holders received 19,519 -10% settlement proposals (~100%). 17,016 21,411 21,772
Slide 15: Excellent performance of the core business continued in 9M/24
Excellent performance of the core business continued in 9M/24 Summary of financial results for mBank’s core activity and run-off portfolio in 9M/24 Separation of FX mortgage loan portfolio PLN million Core Business Non-core1 mBank Group ▪ In order to present the genuine and undistorted performance o
Slide 16: Overview of the financial performance after Q3 2024
Key highlights and business development in Q3 2024 Overview of the financial performance after Q3 2024 Update on Poland’s macroeconomic situation and outlook 16
Slide 17: Results of mBank Group: Loans to customers
Results of mBank Group: Loans to customers Further growth of loan portfolio with stronger revival in retail business segment Development of gross loans and advances to customers Gross loans to corporate customers PLN M PLN M +7.8% +5.0% +10.8% +0.4% +7.3% +2.0% +0.8% +2.3% 53,453 53,199 57,383 57,63
Slide 18: Results of mBank Group: New lending business
Results of mBank Group: New lending business Outstanding level of mortgage loan sales and stabilisation of consumer credit Sales of mortgage loans Sales of non-mortgage loans PLN M, by quarter PLN M, by quarter 2% Safe +29% +325% +47% +47% Mortgage 0% -0.2% Q3/23: PLN 10 M 3,338 Q4/23: 2,750 2,856 2
Slide 19: Results of mBank Group: Customer deposits
Results of mBank Group: Customer deposits Deposit base fuelled by surging inflows to current and saving accounts Development of customer deposits Deposits from corporate customers PLN M PLN M +1.8% +4.5% +0.8% +4.1% +3.2% +4.7% 54,201 56,439 52,861 53,020 55,197 193,500 1,710 1,470 2,662 2,543 2,298
Slide 20: Results of mBank Group: Total income
Results of mBank Group: Total income Record revenues thanks to rising recurrent net interest income and improving net fees Development of mBank Group’s total income Development of interest income PLN M PLN M Q2/24 other operating income in Q2/24 and Q3/24 0% distorted included a refund of collection
Slide 21: Results of mBank Group: Total costs and efficiency
Results of mBank Group: Total costs and efficiency Excellent efficiency continued, higher costs driven mainly by projects and investments Development of mBank Group’s operating costs Cost/Income ratio of mBank Group – quarterly PLN M excluding impact of “credit holidays” and a refund by KUKE (in Q2/
Slide 22: Results of mBank Group: Loan loss provisions and cost of risk
Results of mBank Group: Loan loss provisions and cost of risk Credit provisioning at normalised level, still remaining below the annual guidance Net impairment losses and fair value change on loans mBank Group’s cost of risk, by segment PLN M bps 165 -26% 476.5 87 58 62 93 17 Negative one-off impact
Slide 23: Results of mBank Group: Loan portfolio quality
Results of mBank Group: Loan portfolio quality Good asset quality, NPL ratio supported by sale of impaired loans and growing portfolio mBank Group’s impaired loans portfolio mBank Group’s NPL ratio PLN M NPL ratio +0.8% according to EBA 4.2% 4.2% 4.3% -2.8% 4.1% 4.1% definition has remained consider
Slide 24: Update on Poland's macroeconomic situation and outlook
Key highlights and business development in Q3 2024 Overview of the financial performance after Q3 2024 Update on Poland’s macroeconomic situation and outlook 24
Slide 25: Macroeconomic situation and outlook
Macroeconomic situation and outlook NBP is likely to cut rates in mid-2025 when inflation starts declining. Consumption on the rise again 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 Oct.16 Jul.17 Apr.18 Jan.19 Oct.19 Jul.20 Apr
Slide 26: Macroeconomic situation and outlook
Macroeconomic situation and outlook Credit growth is moving sideways. Bond yields slightly lower, PLN holds its strength. 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% -
Slide 27: Poland: economic fundamentals
Poland: economic fundamentals Growth story. High competitiveness compared to peers. Real GDP (Q1 2010 = 100) Hourly labour costs (in EUR) 170 50 Source: Eurostat Source: Eurostat 160 40 150 140 30 130 120 20 110 10 100 90 0 Jan.10 Jul.11 Jan.13 Jul.14 Jan.16 Jul.17 Jan.19 Jul.20 Jan.22 Jul.23 Bulgar
Slide 28: Macroeconomic forecasts and outlook for mBank Group
Macroeconomic forecasts and outlook for mBank Group Operating environment for banks has continued being challenging and volatile Key economic indicators for Poland Prospects for mBank in 2024 (compared to 2023) 2022 2023 2024F 2025F Net interest income & NIM slightly positive GDP growth (YoY) 5.3% 0
Slide 29: Appendix
Appendix 29
Slide 30: Selected Financial Data
Selected Financial Data Consolidated Profit and Loss Account – quarterly Quarterly results (PLN thou.) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Net interest income 2,284,687 2,355,039 2,340,082 2,164,656 2 571,355 Net fee and commission income 482,704 444,500 484,127 491,227 499,244 Dividend income 1
Slide 31: Selected Financial Data
Selected Financial Data Consolidated Statement of Financial Position – quarterly Assets (PLN thou.) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Cash and balances with Central Bank 19,451,659 36,702,427 24,535,807 21,707,034 25,893,176 Loans and advances to banks 17,095,049 7,119,059 12,054,848 11,577,94
Slide 32: Selected Financial Data
Selected Financial Data mBank Group’s Ratios – quarterly and cumulatively Financial Ratios Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Net Interest Margin, quarterly 4.26% 4.31% 4.37% 4.44% 4.31% Net Interest Margin, YtD 4.14% 4.18% 4.37% 4.41% 4.37% Net Interest Margin, excl. CHF portfolio, YtD 4.26% 4
Slide 33: Selected Financial Data – Net interest income
Selected Financial Data – Net interest income Structure of mBank Group’s interest income Structure of mBank Group’s interest expense PLN M Presented development and dynamics are PLN M adjusted for the impact of “credit holidays” -2.7% +3.7% -18.0% 3,734.8 1,552.2 3,836.9 3,678.1 3,603.0 7% 265.4 3,5
Slide 34: Selected Financial Data – Net fees and commissions
Selected Financial Data – Net fees and commissions Structure of mBank Group’s fee and commission income Structure of mBank Group’s fee and commission expense PLN M PLN M +7.9% +4.1% +15.6% +8.2% 820.5 788.1 325.0 321.3 760.6 769.5 768.2 81.1 10% 83.4 296.9 68.4 85.7 83.5 277.9 284.0 119.0 14% 123.5
Slide 35: 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 B PLN B 238.6 238.6 227.0 230.3 227.0 230.3 225.4 224.2 225.4 224.2 15.3 6% 32.9 14% 13.7 13.7 14.6 5% 29.2 14.1 11.0 26.6 31.6 8.4 10.6 11.8 2.7 1% 44.0 2.7
Slide 36: 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 as of 30.09.2024 as of 30.09.2024 Real estate 5.4% Building industry 4.3% Financial activities 4.0% 0.1% 0.5% Food sector 2.9% 17.8% 12
Slide 37: Selected Financial Data – Funding profile
Selected Financial Data – Funding profile Structure of mBank Group’s funding Summary of mBank’s long-term funding instruments as of 30.09.2024 as of 30.09.2024 Nominal Issue Maturity Currency Tenor Coupon value date date Other Subordinated liabilities 4.9% Issues under Euro Medium Term Note (EMTN) P
Slide 38: Selected Financial Data – Capital requirements and liquidity
Selected Financial Data – Capital requirements and liquidity Regulatory capital requirements for mBank Group as of 30.09.2024 Countercyclical Capital Buffer (CCyB), calculated as the weighted average of the CCyB +4.31 pp rates that apply in the countries where the relevant credit exposures are locat
Slide 39: Selected Financial Data – MREL requirements
Selected Financial Data – MREL requirements Fulfilment of MREL requirements by mBank Group MREL (TREA) MREL (TREA) Subordinated +4.75pp +4.87pp ▪ On 09.04.2024, mBank received the joint decision of Bank Guarantee Fund and Single Resolution Board 23.58% 23.25% 22.73% 21.70% regarding the minimum MREL
Slide 40: 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 41: Retail Banking – profit and network
Retail Banking – profit and network Profit before income tax of the segment Number of Retail Service Locations PLN M, by quarter excluding impact -9 mBank CZSK of "credit holidays“ mBank CZSK Poland 359 351 350 +18% +1% +1% 47 45 43 mFinanse1 40 41 40 1,173.2 1,187.2 mKiosks 1,100.3 1,002.5 52.7 57.
Slide 42: Retail Banking – business volumes
Retail Banking – business volumes Development of gross loans to retail banking clients Development of deposits from retail banking clients PLN M PLN M 12,095 Customer funds invested via Investment funds mBank’s solutions (30.09.2024) Brokerage assets 24,178 +2.8% +3.4% +5.3% 69,700 +2.9% 67,829 66,2
Slide 43: 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 M PLN M -8% -1% 12.3% 12.9% +1% +2% 9,816 17,004 16,631 16,910 9,129 8,813 8,946 8,994 15,954 15,379 3,104 4,705 4,406 4,377 4,286 2,915 2,902 2,963 3,
Slide 44: mBank in the Czech Republic and Slovakia
mBank in the Czech Republic and Slovakia Mortgage loans Non-mortgage loans Customer deposits CZK M CZK M CZK M -10% +16% +15% Czech Republic -2% +3% +6% physical network: light 6 branches 24,986 23,023 22,609 11,125 11,778 72,159 74,279 financial 10,130 64,807 7 centres 17 mKiosks 09/23 06/24 09/24
Slide 45: 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 ▪ activating the app with a entirely digital onboarding process, QR code with no in-person contact and printouts required ▪ logging into the applicati
Slide 46: Corporate & Investment Banking – profit and network
Corporate & Investment Banking – profit and network Profit before income tax of the segment Number of corporate service locations PLN M, by quarter as of 30.09.2024 2 2 +17% Pomorskie 1 2 2 Warmińsko- -18% Zachodnio- Mazurskie 1 1 Pomorskie 2 1 Podlaskie 29 mBank’s branches, Kujawsko- Pomorskie 4 2
Slide 47: 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 M PLN M +7.9% +2.6% +0.5% +3.9% 57,543 57,803 57,055 56,079 54,643 1,656 53,799 53,949 53,590 53,367 1,789 6,491 6,446 1,616 1,89
Slide 48: 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 49: Unique value proposition for e-commerce market participants
Unique value proposition for e-commerce market participants mOkazje zakupy – development of marketplace in mBank's mobile application Expansion of Paynow in online payments ▪ mBank launched first of this kind cooperation superior payment processing with Morele.net, which is one of the largest capabi
Slide 50: Strategic financial targets of mBank Group
Strategic financial targets of mBank Group Updated strategic financial targets of mBank Group for 2023-2025 compared to results for 9M/24 measure target level execution in 9M/24 ✓ supported by high Efficiency [in 2025] Cost/Income ratio (C/I) below 40% 27.7% interest rates offsetting inflationary pr
Slide 51: ESG well embedded in mBank Group's strategy (1/2)
ESG well embedded in mBank Group's strategy (1/2) Environmental pillar SBTi commitment Reducing greenhouse gases (GHG) emissions of our loan portfolio, steered by SBTi as the mBank joined the Science Based Targets initiative most prominent driver to become net-zero (SBTi) in 2022. In line with our o
Slide 52: ESG well embedded in mBank Group's strategy (2/2)
ESG 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 (at
Slide 53: Historical financial results of mBank Group
Historical financial results of mBank Group PLN million 2019 2020 2021 2022 2023 ∆ YoY Net interest income 4,002.8 4,009.3 4,126.3 5,924.0 8,873.5 +49.8% Net fee and commission income 1,270.6 1,508.3 1,867.8 2,120.1 1,915.9 -9.6% Net trading and other income 251.0 349.2 117.1 -187.2 12.9 -/+ Total i
Slide 54: mBank's share price performance
mBank’s share price performance Polish banking stocks followed a sideways trend in Q3/24, but with high volatility mBank’s index membership and weights mBank’s share performance v. main indices (rebased to 100) as of 30.09.2024 190 WIG20 2.743% mBank’s share price 180 30.09.2023 395.3 WIG30 2.584% M
Slide 55: 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 third quarter of 2024, prepared under the International Financial Reporting Standards. For more detailed information on mBank S.A. and mB
Slide 56: Disclaimer (to the slide 12)
Disclaimer (to the slide 12) The slide regarding First Polish broadly distributed Additional Tier 1 offering (“Slide”) has been prepared by mBank S.A. (the "Bank") solely for use of preliminary discussions regarding potential issue of notes referred to herein (the “Notes”) and on the basis of your a
Slide 57: 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