Slide 1: Results of mBank Group Q1-Q4 2024
Results of mBank Group Q1-Q4 2024 Strengthened Bank - gearing up for further growth Presentation for Investors and Analysts, 06.02.2025
Slide 2: Key highlights, Q4 2024 financial performance, Polish macro
Key highlights and business development in 2024 Overview of the financial performance in Q4 2024 Update on Poland’s macroeconomic situation and outlook 2
Slide 3: Key highlights in mBank Group in 2024
Key highlights in mBank Group in 2024 Revival and expansion Superior financial Strengthening of Effective management of business volumes performance driven the capital position of CHF portfolio to improve by high profitability in order to pave to further reduce market shares of core operations the w
Slide 4: Summary of strategic priorities in 2024: loan sales
Summary of mBank Group’s strategic priorities in 2024 Revival and expansion of business volumes to improve market share 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 segment: K1 K2 K3 +157%
Slide 5: Strategic priorities: development of loans and market shares
Summary of mBank Group’s strategic priorities in 2024 Revival and expansion of business volumes to improve market share Development of mBank Group’s gross loans Market shares in loans PLN million in Poland +7% households enterprises ∆ YoY 127,504 124,985 total loans w/o FX total loans 117,229 168 14
Slide 6: Strategic priorities: development of deposits and market shares
Summary of mBank Group’s strategic priorities in 2024 Revival and expansion of business volumes to improve market share Development of mBank Group’s deposits Market shares in deposits PLN million in Poland +8% ∆ YoY households enterprises 200,809 current deposits current deposits 193,500 185,467 841
Slide 7: Strategic priorities: total revenues and NIM
Summary of mBank Group’s strategic priorities in 2024 Superior financial performance driven by high profitability of core operations Development of mBank Group’s total revenues Net interest margin (NIM) PLN million excluding impact of “credit holidays” other operating income in 2024 included +11% im
Slide 8: Strategic priorities: total costs and cost/income
Summary of mBank Group’s strategic priorities in 2024 Superior financial performance driven by high profitability of core operations Development of mBank Group’s total costs Normalised cost/income ratio PLN million excluding non-recurrent items +10% indicator w/o the impact of "credit holidays" ∆ Yo
Slide 9: Strategic priorities: loan loss provisions and cost of risk
Summary of mBank Group’s strategic priorities in 2024 Superior financial performance driven by high profitability of core operations Development of mBank Group’s loan loss provisions and fair value change Cost of risk (COR) PLN million calculated to average net loans -47% adjusted level of risk cost
Slide 10: Strategic priorities: net profit and ROE
Summary of mBank Group’s strategic priorities in 2024 Superior financial performance driven by high profitability of core operations Development of mBank Group’s net profit Return on equity (ROE) PLN million comparison of reported, adjusted and core levels the highest-ever 0.2% 14.8% reported +22% r
Slide 11: Strategic priorities: strengthening capital position
Summary of mBank Group’s strategic priorities in 2024 Strengthening of the capital position in order to pave the way for growth Total risk exposure amount Own funds mBank Group’s capital ratios PLN million PLN million compared to regulatory requirement CET1 capital AT1 Tier 2 capital CET1 ratio AT1
Slide 12: Strategic priorities: CHF court cases and settlements
Summary of mBank Group’s strategic priorities in 2024 Effective management of CHF portfolio to further reduce balance sheet risks New CHF-related court cases CHF loan contracts in court Settlements concluded by mBank number of contracts entering the court number of pending cases with CHF borrowers,
Slide 13: Strategic priorities: costs of legal risk and provisions
Summary of mBank Group’s strategic priorities in 2024 Effective management of CHF portfolio to further reduce balance sheet risks Costs of legal risk related to FX mortgage loans Outstanding legal provisions for FX mortgage loans annual impact, PLN million total value, PLN million Q1 Q2 Q3 Q4 deduct
Slide 14: Strategic priorities: CHF mortgage loan portfolio
Summary of mBank Group’s strategic priorities in 2024 Effective management of CHF portfolio 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 31.12.2024 portfolio dedu
Slide 15: Key take-aways after 2024
Key take-aways after 2024 We delivered: return to volume growth exemplified by 2024 record sales of mortgage loans and more active financing to corporate clients the highest net profit in mBank Group's history backed by excellent performance of the core business strengthened capital base thanks to l
Slide 16: Outlook for mBank Group for 2025
Outlook for mBank Group for 2025 We expect: total revenues to be above PLN 11 billion, 2025 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 lega
Slide 17: Key highlights, Q4 2024 financial performance, Polish macro
Key highlights and business development in 2024 Overview of the financial performance in Q4 2024 Update on Poland’s macroeconomic situation and outlook 17
Slide 18: Summary of financial results in Q4 2024
Summary of financial results in Q4 2024 Total revenues Seasonal growth of Lower cost of risk Net profit at the level above PLN 3 billion, operating expenses and stable NPL ratio of almost PLN 1 billion, driven by higher net with cost/income ratio of 4.1% confirming supported by interest income and s
Slide 19: Summary of financial results in Q4 2024
Summary of financial results in Q4 2024 PLN million Q4 2023 Q3 2024 Q4 2024 ∆ QoQ ∆ YoY Net interest income 2,355.0 2,571.4 2,512.9 -2.3% +6.7% Recurrent net interest income 2,339.1 2,461.3 2,504.7 +1.8% +7.1% Impact of “credit holidays” 16.0 110.1 8.2 -92.5% -48.4% Net fee and commission income 444
Slide 20: Summary of financial results in Q4 2024: capital ratios
Summary of financial results in Q4 2024 Development of mBank Group’s capital ratios Further strengthening of capital CET1 ratio AT1 Tier 2 position with +1.9 p.p. added by two +4.76 transactions: 17.04% 16.22% 16.24% 16.19% 15.85% 2.32% 2.33% 1.75% 1.55% 1.33% 14.52% ▶ fourth synthetic securitizatio
Slide 21: mBank outperformed all its strategic financial targets in 2024
mBank outperformed all its strategic financial targets in 2024 strategic measure target level execution in 2024 supported by high ✓ Efficiency [in 2025] Cost/Income ratio (C/I) below 40% 28.2% interest rates offsetting inflationary pressure surplus helped by secu- year-end level min 2.5 p.p. Stabili
Slide 22: Key highlights, Q4 2024 financial performance, Polish macro
Key highlights and business development in 2024 Overview of the financial performance in Q4 2024 Update on Poland’s macroeconomic situation and outlook 22
Slide 23: Macroeconomic situation in Poland
Macroeconomic situation in Poland NBP is likely to cut rates in 2025 as 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 Jan.17 Jan.18 Jan.19 Jan.20 Jan.21 Jan.22 Jan.23 Jan.
Slide 24: Macroeconomic situation in Poland
Macroeconomic situation in Poland Credit growth is recovering. Bond yields are on the rise, PLN remains quite steady. 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% -
Slide 25: 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 2024F 2025F 2026F ▪ GDP growth is expected to reach 3.8%, which should be GDP growth
Slide 26: Appendix
Appendix 26
Slide 27: Selected Financial Data: Profit and Loss Account
Selected Financial Data Consolidated Profit and Loss Account – quarterly Quarterly results (PLN thou.) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Net interest income 2,355,039 2,340,082 2,164,656 2 571,355 2,512,930 Net fee and commission income 444,500 484,127 491,227 499,244 497,286 Dividend income 4
Slide 28: Selected Financial Data: Statement of Financial Position
Selected Financial Data Consolidated Statement of Financial Position – quarterly Assets (PLN thou.) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Cash and balances with Central Bank 36,702,427 24,535,807 21,707,034 25,893,176 36,680,926 Loans and advances to banks 7,119,059 12,054,848 11,577,948 17,503,61
Slide 29: mBank Group's Ratios
Selected Financial Data mBank Group’s Ratios – quarterly and cumulatively Financial Ratios Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Net Interest Margin, quarterly 4.31% 4.37% 4.44% 4.31% 4.27% Net Interest Margin, YtD 4.18% 4.37% 4.41% 4.37% 4.35% Net Interest Margin, excl. CHF portfolio, YtD 4.30% 4
Slide 30: Quarterly results: Total income
Quarterly results of mBank Group – Total income Total revenues above PLN 3 billion, driven by strong net interest income and stable net fees Development of mBank Group’s total income Development of net interest margin (NIM) PLN M quarterly data, excluding impact of “credit holidays” other operating
Slide 31: Quarterly results: Net interest income
Quarterly results of mBank Group – Net interest income Highest-ever recurrent net interest income, supported by contained funding costs 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
Slide 32: Quarterly results: Net fees and commissions
Quarterly results of mBank Group – Net fees and commissions Mixed trends within net fees continued with better income from lending and FX transactions Structure of mBank Group’s fee and commission income Structure of mBank Group’s fee and commission expense PLN M PLN M +8.0% +1.3% +2.6% +3.8% 820.5
Slide 33: Quarterly results: Total costs and efficiency
Quarterly results of mBank Group – Total costs and efficiency Seasonal growth of operating expenses, with cost/income ratio maintained at excellent level Development of mBank Group’s operating costs Cost/Income ratio of mBank Group – quarterly PLN M excluding impact of “credit holidays” and a refund
Slide 34: Quarterly results: Credit losses and cost of risk
Quarterly results of mBank Group – Credit losses and cost of risk Credit provisioning oscillated at lower level in 2024, 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 Negative one-off impact in Q4/23 of: 165
Slide 35: Quarterly results: 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 M NPL ratio +2.4% 4.3% according to EBA 4.2% 4.1% -2.0% 4.1% 4.1% definition has re
Slide 36: 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 246.0 246.0 238.6 238.6 227.0 230.3 227.0 230.3 17.8 7% 224.2 224.2 15.3 32.9 44.0 18% 14.6 9.5 4% 29.2 13.7 14.1 11.0 2.7 1% 31.6 10.6 11.8 2.7 12.1
Slide 37: 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 31.12.2024 as of 31.12.2024 Real estate 5.8% Building industry 4.0% Food sector 2.8% 0.1% 0.5% Power & heating distribution 2.8%
Slide 38: Funding profile
Selected Financial Data – Funding profile Structure of mBank Group’s funding Summary of mBank’s long-term funding instruments as of 31.12.2024 as of 31.12.2024 Nominal Issue Maturity Currency Tenor Coupon value date date Other Subordinated liabilities 4.2% Issues under Euro Medium Term Note (EMTN) P
Slide 39: Capital requirements and liquidity
Selected Financial Data – Capital requirements and liquidity Regulatory capital requirements for mBank Group as of 31.12.2024 Countercyclical Capital Buffer (CCyB), calculated as the weighted average of the CCyB +4.76 pp rates that apply in the countries where the relevant credit exposures are locat
Slide 40: 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 +5.02 +5.09 25.62% 24.65% 23.63% 23.58% 24.05% 23.51% 22.77% 22.73% 22.50% 21.91% 18.49% 16.82% 3.13% 3.13% 15.36% 13.69% 12/23 03/24 06/24 0
Slide 41: 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 42: 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 43: 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 -6 mBank CZSK of "credit holidays“ mBank CZSK Poland 354 350 348 +29% -10% -10% 47 43 43 mFinanse1 1,173.2 1,187.2 40 40 40 1,100.3 1,067.6 mKiosks 68.6 5
Slide 44: 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 Investment funds 12,672 Customer funds invested via mBank’s solutions (31.12.2024) Brokerage assets 24,145 +6.5% +1.3% +10.8% 69,700 70,589 +3.5% 66,
Slide 45: 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 0% +7% 13.0% 12.0% +2% +1% 9,129 8,813 8,946 8,994 9,153 16,631 16,910 17,033 15,954 15,379 2,915 2,902 2,963 3,009 3,052 4,377 4,286 4,324 4,4
Slide 46: 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 +23% +14% Czech -8% Republic -1% +1% +7% physical network: light 6 branches 24,172 22,609 22,303 11,778 12,633 65,665 74,279 74,819 financial 10,292 7 centres 17 mKiosks 12/23 09/24 12/24 1
Slide 47: 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 48: 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 31.12.2024 2 2 1 2 +22% 2 Pomorskie Warmińsko- Zachodnio- Mazurskie 1 1 +1% Pomorskie 2 1 Podlaskie 29 mBank’s branches, Kujawsko- Pomorskie 4 2 i
Slide 49: 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 +6.7% +2.6% -5.9% +4.4% 57,543 57,803 58,561 57,055 56,079 54,396 1,299 53,367 6,491 6,446 1,656 53,799 53,949 1,789 50,9
Slide 50: 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 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 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 54: mBank's share price performance
mBank’s share price performance Polish banking stocks were better than WIG-20 Index in 2024, but demonstrated high volatility mBank’s index membership and weights mBank’s share performance v. main indices (rebased to 100) as of 31.12.2024 140 mBank’s share price WIG20 2.589% 31.12.2023 535.0 135 MIN
Slide 55: Disclaimer
Disclaimer This presentation has been prepared by mBank S.A. for information purposes only and is based on selected non-audited consolidated financial information of mBank S.A. Group for the fourth quarter of 2024, prepared under the International Financial Reporting Standards. For more detailed inf
Slide 56: 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