Slide 1: Results of mBank Group Q1 2022
Results of mBank Group Q1 2022 Outstanding operational results in a volatile environment Presentation for Investors and Analysts, 11.05.2022
Slide 2: Agenda
Agenda Key highlights of Q1 2022 2 ▪ Business development ▪ Summary of financial results Analysis of the performance after Q1 2022 14 ▪ Loans and deposits ▪ Total income and its main components ▪ Total costs and efficiency ▪ Loan loss provisions and portfolio quality ▪ Capital and liquidity position
Slide 3: Key highlights of Q1 2022 in mBank Group
Key highlights of Q1 2022 in mBank Group ✓ Total revenues over PLN 2 billion for the first time, driven Net interest income Net fee income by surging net interest income and uptrending fee result +58.3% YoY +27.8% YoY ✓ Excellent efficiency, higher BFG contribution and inflation Total costs Cost/Inc
Slide 4: mBank's achievements and actions in pursuing its ESG strategy
mBank’s achievements and actions in pursuing its ESG strategy mBank’s ESG Low Risk rating mBank continued to cooperate mBank initiated multiple confirmed; decarbonisation path with the Great Orchestra of activities to support victims with PCAF initiated Christmas Charity (WOŚP) of the war in Ukraine
Slide 5: Evolution of mBank's digital solutions for greater convenience
Evolution of mBank’s digital solutions for greater convenience mBank extended functionality mBank added personal financial mBank upgraded its mobile and of mojeID (myID) for greater management (PFM) functiona- internet solutions for corporate convenience of remote services lities to its mobile appli
Slide 6: mBank's inaugural synthetic securitisation transaction
mBank’s inaugural synthetic securitisation transaction Structure of the transaction A landmark transaction for the Polish credit risk sharing market Securitized loans ✓ the largest ever securitized portfolio in Central and Eastern Europe Type Corporate and SME ✓ the first ever STS synthetic securiti
Slide 7: 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 closing of 9.3% current deposits 8.3% 8.4% +27 inactive 8.2% 8.3% accounts 4.1% term deposits 8.0% with arrears +29 7.8% 7.7% 5,516 5,514 5,
Slide 8: 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 by the share thousand #1 of mobile users in total active mBank CZSK average growth per year 2,960 +109 3,069 customer base mBank PL +398 2,577 372 372 2,128 303 1,670 234 by the number 1,329
Slide 9: Summary of key financial highlights for mBank Group
Summary of key financial highlights for mBank Group Total income Cost/Income ratio 1 Net profit of Core Business 2 ROE of Core Business 2 PLN M PLN M +42% -4.8pp +97% +13.3pp 2,179 36.8% 702.6 23.7% 32.0% 1,539 356.5 10.4% Q1/21 Q1/22 Q1/21 Q1/22 Q1/21 Q1/22 Q1/21 Q1/22 Gross loans to customers NPL
Slide 10: Summary of financial results: Profit and Loss Account
Summary of financial results: Profit and Loss Account PLN million Q1 2021 Q4 2021 Q1 2022 ∆ QoQ ∆ YoY Net interest income 946.9 1,190.8 1,499.3 +25.9% +58.3% Net fee and commission income 468.1 490.0 598.0 +22.1% +27.8% Total income 1,538.8 1,620.6 2,178.6 +34.4% +41.6% Total costs (excluding BFG) -
Slide 11: Summary of financial results: Balance Sheet
Summary of financial results: Balance Sheet PLN million Q1 2021 Q4 2021 Q1 2022 ∆ QoQ ∆ YoY Total assets 194,217 199,539 204,914 +2.7% +5.5% Gross loans to customers 116,925 121,233 126,773 +4.6% +8.4% Individual client loans 67,785 73,244 75,122 +2.6% +10.8% Corporate client loans 48,901 47,836 51,
Slide 12: Strong protection against legal risks related to CHF portfolio
Strong protection against legal risks related to CHF portfolio CHF mortgage loans granted to individual customers Number of individual court cases concerning indexation clauses CHF M, carrying amount equivalent to: PLN 8,787 M as of 31.03.2022 new court proceedings initiated against mBank +12% +11%
Slide 13: Excellent performance of the core business demonstrated in Q1 2022
Excellent performance of the core business demonstrated in Q1 2022 Summary of financial results for mBank’s core activity and run-off portfolio in Q1 2022 Separation of FX mortgage loan portfolio PLN million Core Business Non-core1 mBank Group ▪ In order to present the genuine and undistorted perfor
Slide 14: Agenda
Agenda Key highlights of Q1 2022 2 ▪ Business development ▪ Summary of financial results Analysis of the performance after Q1 2022 14 ▪ Loans and deposits ▪ Total income and its main components ▪ Total costs and efficiency ▪ Loan loss provisions and portfolio quality ▪ Capital and liquidity position
Slide 15: Results of mBank Group: Loans to customers
Results of mBank Group: Loans to customers Loan portfolio expansion driven by positive trends in both retail and corporate segment Development of gross loans and advances to customers Gross loans to corporate customers PLN M PLN M +5.3% +8.4% +5.2% +7.6% +7.5% +4.6% +7.2% +4.1% 48,901 49,635 49,883
Slide 16: Results of mBank Group: New lending business
Results of mBank Group: New lending business New mortgage lending maintained high, accompanied by record sales of consumer loans Sales of mortgage loans Sales of non-mortgage loans PLN M, by quarter PLN M, by quarter -1% +30% +13% +13% -3% -3% 3,424 3,172 2,717 2,793 2,855 2,916 2,830 2,570 2,481 2,
Slide 17: Results of mBank Group: Customer deposits
Results of mBank Group: Customer deposits Deposit base anchored in transactional accounts, retail outflows lower than in the sector Development of customer deposits Deposits from corporate customers PLN M PLN M +10.3% +8.3% +3.0% +10.2% +12.7% +8.3% +2.9% 54,479 +12.4% 164,743 49,095 52,783 164,142
Slide 18: Results of mBank Group: Total income
Results of mBank Group: Total income The highest revenues in history driven by surging net interest income and strong fee result Development of mBank Group’s total income Development of interest income PLN M PLN M +68.4% +32.9% +32.9% +41.6% +34.4% +34.4% 1,716.3 2,178.6 271.7 1,291.7 95.6 3.1 ∆ QoQ
Slide 19: Results of mBank Group: Total costs and efficiency
Results of mBank Group: Total costs and efficiency Excellent efficiency, inflation of costs kept visibly below the dynamics of revenues Development of mBank Group’s operating costs Cost/Income ratio of mBank Group – quarterly PLN M Excluding 43.2% 42.5% 43.0% +27.0% +X.X% +41.7% the BFG +16.9% 38.8%
Slide 20: Results of mBank Group: Loan loss provisions and cost of risk
Results of mBank Group: Loan loss provisions and cost of risk Conservative approach reflected in provisioning amid new wave of uncertainties Net impairment losses and fair value change on loans mBank Group’s cost of risk, by segment PLN M bps 98 89 +63% -7% 80 289.8 69 89 0.5 59 76 268.5 70 66 0.8 5
Slide 21: Results of mBank Group: Loan portfolio quality
Results of mBank Group: Loan portfolio quality Robust asset quality confirmed by resilient risk indicators, some support from sale of NPLs mBank Group’s impaired loans portfolio mBank Group’s NPL ratio PLN M According to -9.4% 4.6% EBA definition, 4.4% +3.0% consolidated 4.0% 3.9% NPL ratio was: 3.9
Slide 22: Results of mBank Group: Capital ratio and liquidity position
Results of mBank Group: Capital ratio and liquidity position Safe capital position and outstanding liquidity securing a stable ground for growth mBank Group’s Total Capital Ratio mBank’s NSFR and LCR The impact of negative bond valuation on capital ratios Group’s LCR: 200% amounted to -0.4 p.p. QoQ
Slide 23: Agenda
Agenda Key highlights of Q1 2022 2 ▪ Business development ▪ Summary of financial results Analysis of the performance after Q1 2022 14 ▪ Loans and deposits ▪ Total income and its main components ▪ Total costs and efficiency ▪ Loan loss provisions and portfolio quality ▪ Capital and liquidity position
Slide 24: Macroeconomic situation and outlook
Macroeconomic situation and outlook Russian invasion on Ukraine made economic outlook even more complicated Consumer sentiment still under pressure Unemployment rate declined further 20 12% 10 10% 0 8% -10 6% -20 4% -30 2% Source: GUS Source: GUS -40 0% Jan.16 Jul.16 Jan.17 Jul.17 Jan.18 Jul.18 Jan.
Slide 25: Macroeconomic situation and outlook
Macroeconomic situation and outlook Household credit lost momentum, but corporate demand still strengthening Corporate loans and deposits (YoY, FX-adjusted) Household loans and deposits (YoY, FX-adjusted) 30% 14% Source: NBP Source: NBP 25% 12% 20% 10% 15% 8% 10% 6% 5% 0% 4% -5% 2% -10% 0% Jan.13 Oc
Slide 26: Macroeconomic forecasts and outlook for mBank Group
Macroeconomic forecasts and outlook for mBank Group Operating environment for banks remains challenging despite monetary policy tightening Key economic indicators for Poland Short-term prospects for mBank (4 quarters ahead) 2020 2021 2022F 2023F Net interest income & NIM slightly positive GDP growth
Slide 27: Agenda
Agenda Key highlights of Q1 2022 2 ▪ Business development ▪ Summary of financial results Analysis of the performance after Q1 2022 14 ▪ Loans and deposits ▪ Total income and its main components ▪ Total costs and efficiency ▪ Loan loss provisions and portfolio quality ▪ Capital and liquidity position
Slide 28: Appendix: Selected Financial Data
Appendix: Selected Financial Data Consolidated Profit and Loss Account – quarterly Quarterly results (PLN thou.) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Net interest income 946,895 961,537 1,004,845 1,190,766 1,499,335 Net fee and commission income 468,060 452,569 479,438 489,954 597,994 Dividend in
Slide 29: Appendix: Selected Financial Data
Appendix: Selected Financial Data Consolidated Statement of Financial Position – quarterly Assets (PLN thou.) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Cash and balances with Central Bank 16,355,429 16,523,318 18,015,638 12,202,266 17,971,383 Loans and advances to banks 7,381,296 9,750,443 14,398,589
Slide 30: Appendix: Selected Financial Data
Appendix: Selected Financial Data mBank Group’s Ratios – quarterly and cumulatively Financial Ratios Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Net Interest Margin, quarterly 2.10% 2.04% 2.02% 2.39% 3.15% Net Interest Margin, YtD 2.10% 2.07% 2.05% 2.14% 3.15% Net Interest Margin, excl. CHF portfolio, Y
Slide 31: Appendix: Selected Financial Data – Net Interest Income
Appendix: Selected Financial Data – Net Interest Income Structure of mBank Group’s interest income Structure of mBank Group’s interest expense PLN M PLN M +32.9% +32.9% +68.4% +115% +115% 1,716.3 3% 48.0 4.5 4.7 0% 217.0 0% +199% 214.5 13% 1,291.7 76.6 35% 87.4 31.1 4.4 1,085.4 1,019.4 1,035.2 141.0
Slide 32: Appendix: Selected Financial Data – Net Fees and Commissions
Appendix: 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 +22.8% +9.6% +9.6% -16.6% 792.9 233.7 723.7 67.5 8% 219.5 698.9 645.9 646.3 71.8 193.8 194.9 67.6 124.8 16% 55.9 62.8 17
Slide 33: Appendix: Selected Financial Data – Balance Sheet Analysis
Appendix: 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 208.2 204.9 208.2 204.9 198.5 199.5 198.5 199.5 194.2 194.2 16.5 13.6 7% 23.7 13.7 19.0 25.7 13% 16.7 6.9 4% 21.6 22.0 16.7 2.6 8.2 6.5 2.6
Slide 34: Appendix: Selected Financial Data – Structure of Loans and Deposits
Appendix: 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 31.03.2022 as of 31.03.2022 Real estate 5.2% Building industry 4.0% Transport and logistics 2.6% 0.1% 0.5% Food sector
Slide 35: Appendix: Selected Financial Data – Funding profile
Appendix: Selected Financial Data – Funding profile Structure of mBank Group’s funding Summary of mBank’s long-term funding instruments as of 31.03.2022 as of 31.03.2022 Nominal Issue Maturity Currency Tenor Coupon Other value date date Subordinated liabilities 4.3% Issues under Euro Medium Term Not
Slide 36: Appendix: Selected Financial Data – Capital Requirements
Appendix: Selected Financial Data – Capital Requirements Regulatory capital requirements for mBank Group as of 31.03.2022 +2.75 pp Countercyclical Capital Buffer (CCyB) is calculated as the weighted average of the countercyclical buffer rates that apply in the countries where the relevant credit exp
Slide 37: Appendix: A leading mobile banking offer for individual clients
Appendix: A leading mobile banking offer for individual clients easiest way to manage Well-designed functionalities for client convenience your finances fully remote account opening with e-ID or a selfie pace of spending ✓ and agreement approved via a text message ✓ logging in and confirmation of re
Slide 38: Appendix: Retail Banking – profit and network
Appendix: Retail Banking – profit and network Profit before income tax of the segment Number of Retail Service Locations PLN M, by quarter -4 mBank CZSK +84% mBank CZSK Poland +2% 369 367 365 41 45 45 mFinanse1 493.9 503.0 42 40 40 390.1 33.0 46.8 mKiosks 347.6 28.0 149 149 149 Advisory centres 273.
Slide 39: Appendix: Retail Banking – business volumes
Appendix: Retail Banking – business volumes Development of gross loans to retail banking clients Development of deposits from retail banking clients PLN M PLN M +10.8% +7.3% +2.6% -1.1% 75,122 112,446 111,174 73,124 73,244 108,921 70,093 106,700 220 208 67,785 103,583 212 8,233 201 7,640 7% 185 8,82
Slide 40: Appendix: mBank in the Czech Republic and Slovakia
Appendix: 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 +24% +5% 13.6% 14.3% +4% +1% 9,608 9,825 10,204 15,153 15,502 16,036 15,791 15,916 9,031 8,219 3,069 4,667 4,773 4,791 2,946 2,981 4,
Slide 41: Appendix: mBank in the Czech Republic and Slovakia
Appendix: mBank in the Czech Republic and Slovakia Mortgage loans Non-mortgage loans Customer deposits CZK M CZK M CZK M Czech +11% +35% -2% Republic -1% -2% +9% physical network: light 6 branches 28,503 28,281 59,700 59,569 25,485 8,358 58,473 financial 7,657 7 6,199 centres 18 mKiosks 03/21 12/21
Slide 42: Appendix: Best digital banking services for corporate clients
Appendix: Best digital banking services for corporate clients company's finances First-class digital banking offer for companies always at hand ✓ entirely digital onboarding process, with no in-person contact and printouts required ✓ advanced mBank CompanyNet transactional system, allowing for high
Slide 43: Appendix: Corporate & Investment Banking – profit and network
Appendix: Corporate & Investment Banking – profit and network Profit before income tax of the segment Number of corporate service locations PLN M, by quarter 2 2 1 2 +89% +81% 2 Pomorskie Warmińsko- Mazurskie Zachodnio- Pomorskie 1 1 2 1 Podlaskie 29 mBank’s branches, Kujawsko- Pomorskie 4 2 incl. 1
Slide 44: Appendix: Corporate & Investment Banking – business volumes
Appendix: Corporate & Investment Banking – business volumes Development of gross loans to corporate customers Development of deposits from corporate customers PLN M PLN M +5.3% +7.6% +10.3% +12.7% 51,480 54,479 48,901 49,635 49,883 52,783 47,836 3,882 49,095 3,682 9,182 47,862 46,849 7,944 8,380 8,7
Slide 45: Appendix: Complete solutions for e-commerce segment
Appendix: Complete solutions for e-commerce segment mBank’s unique payment gateway Comprehensive value proposition for e-merchants the 1st Polish payment integrator in the cloud Online payment processing solution (BLIK, pay-by-link, card) and a core of mBank’s offering We are strengthening mBank's p
Slide 46: Appendix: Performance of main subsidiaries of mBank
Appendix: 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
Slide 47: Appendix: ESG is well embedded in mBank Group's strategy
Appendix: ESG is well embedded in mBank Group's strategy ESG aspects play a crucial role in the way we manage our company Responsibility for financial health Responsibility for climate of our clients By 2050 we will become a fully climate-neutral bank. We support customers in safe and convenient ban
Slide 48: Appendix: Historical financial results of mBank Group
Appendix: Historical financial results of mBank Group PLN million 2017 2018 2019 2020 2021 ∆ YoY Net interest income 3,135.7 3,496.5 4,002.8 4,009.3 4,104.0 +2.4% Net fee and commission income 1,249.5 1,257.8 1,270.6 1,508.3 1,890.0 +25.3% Net trading and other income 68.4 325.3 251.0 349.2 117.1 -6
Slide 49: Appendix: mBank's share price performance
Appendix: mBank’s share price performance Banking stocks declined on worsened sentiment due to Russian aggression against Ukraine mBank’s index membership and weights mBank’s share performance v. main indices (rebased to 100) – last 12 months as of 31.03.2022 270 mBank’s share price 260 WIG20 1.954%
Slide 50: 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 2022, prepared under the International Financial Reporting Standards. For more detailed information on mBank S.A. and mB
Slide 51: 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