Slide 1: Results of mBank Group Q1 2024
Results of mBank Group Q1 2024 Strong start to the year: solid net result and rebound in lending. Presentation for Investors and Analysts, 10.05.2024
Slide 2: Key highlights and business development in Q1 2024
Key highlights and business development in Q1 2024 Overview of the financial performance after Q1 2024 Update on Poland’s macroeconomic situation and outlook 2
Slide 3: Key highlights of Q1 2024 in mBank Group
Key highlights of Q1 2024 in mBank Group Revenues maintained at record high level as a result of Net interest income Net fee income stable net interest income and solid net fees -0.6% QoQ +8.9% QoQ Best-in-class efficiency continued amid lower staff and Total costs w/o BFG Cost/Income ratio material
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" -2.8pp +20% +75% +16.9pp 29.4% 2,922 26
Slide 5: 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 current deposits 9.2% term deposits 6.1% dormant +202 -23 accounts 9.1% in Q1/24 8.7% 8.8% 8.7% 8.7% 5,514 5,642 5,716 5,693 8.4%
Slide 6: 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 by the share thousand average #1 of mobile users +64 +64 growth in total retail mBank CZSK per year 3,646 3,710 customer base +386 3,338 481 mBank PL 2,960 478 419 2,577 372 2,128 303 1,670
Slide 7: Business development achievements of mBank Group in Q1 2024
Business development achievements of mBank Group in Q1 2024 Enhanced functionalities of mBank’s mobile application New strategy of mLeasing ▪ extended section for managing investments with ▪ adopted strategy is a response to the more information about the fund composition in the dynamically evolving
Slide 8: Summary of financial results: Profit and Loss Account
Summary of financial results: Profit and Loss Account PLN million Q1 2023 Q4 2023 Q1 2024 ∆ QoQ ∆ YoY Net interest income 2,033.1 2,355.0 2,340.1 -0.6% +15.1% Net fee and commission income 501.1 444.5 484.1 +8.9% -3.4% Total income 2,501.7 2,897.5 2,922.1 +0.8% +16.8% Total costs (excl. compulsory c
Slide 9: Summary of financial results: Balance Sheet
Summary of financial results: Balance Sheet PLN million Q1 2023 Q4 2023 Q1 2024 ∆ QoQ ∆ YoY Total assets 217,529 226,981 224,157 -1.2% +3.0% Gross loans to customers 124,800 117,229 120,001 +2.4% -3.8% Individual client loans 70,224 66,260 66,634 +0.6% -5.1% Corporate client loans 54,476 50,836 53,1
Slide 10: 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 31.03.2024 23.6% 22.1% portfolio deductions due to legal risks -69.6% 17.1% 14.7% % of total loan portfolio 85,520 12.2
Slide 11: Lower number of new court cases and signed settlements in Q1/24
Lower number of new court cases and signed settlements in Q1/24 Number of settlements concluded by mBank (cumulative) Number of CHF loan contracts in court (pending cases) repaid conracts All active loan holders received 15,168 21,411 21,772 settlement proposals (~100%). active contracts 13,321 18,3
Slide 12: Excellent performance of the core business continued in Q1/24
Excellent performance of the core business continued in Q1/24 Summary of financial results for mBank’s core activity and run-off portfolio in Q1/24 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 13: Overview of the financial performance after Q1 2024
Key highlights and business development in Q1 2024 Overview of the financial performance after Q1 2024 Update on Poland’s macroeconomic situation and outlook 13
Slide 14: Results of mBank Group: Loans to customers
Results of mBank Group: Loans to customers Rebound of loan portfolio visible in both corporate and retail business segments Development of gross loans and advances to customers Gross loans to corporate customers PLN M PLN M -2.3% -3.8% +0.5% +4.6% -1.4% +2.4% +5.0% 54,476 53,429 53,453 50,836 53,199
Slide 15: Results of mBank Group: New lending business
Results of mBank Group: New lending business High loan sales supported by “2% Safe Mortgage” program and uptrend in consumer credit Sales of mortgage loans Sales of non-mortgage loans PLN M, by quarter PLN M, by quarter 2% Safe +59% +59% Mortgage +30% +242% Q3/23: +22% +22% PLN 10 M 2,352 Q4/23: 2,7
Slide 16: Results of mBank Group: Customer deposits
Results of mBank Group: Customer deposits Development of deposit base driven by pricing optimisation across client segments Development of customer deposits Deposits from corporate customers PLN M PLN M +3.1% +1.2% +1.4% -6.3% -1.3% -8.0% 54,201 56,439 52,861 51,295 50,215 180,917 185,109 185,467 18
Slide 17: Results of mBank Group: Total income
Results of mBank Group: Total income Record revenues thanks to stable net interest income and improving net fees Development of mBank Group’s total income Development of interest income PLN M Following total negative PLN M impact of “credit -2% +16.8% holidays” on revenues in -4% -4% +0.8% 2022 at P
Slide 18: Results of mBank Group: Total costs and efficiency
Results of mBank Group: Total costs and efficiency Excellent efficiency anchored in disciplined cost management despite BFG contribution Development of mBank Group’s operating costs Cost/Income ratio of mBank Group – quarterly PLN M excluding impact of “credit holidays” +4.0% 34.2% +11.7% excluding
Slide 19: Results of mBank Group: Loan loss provisions and cost of risk
Results of mBank Group: Loan loss provisions and cost of risk Low provisioning thanks to improving payment discipline and financial standing of clients Net impairment losses and fair value change on loans mBank Group’s cost of risk, by segment PLN M bps 165 -73% -90% 87 476.5 59 64 Negative one-off
Slide 20: Results of mBank Group: Loan portfolio quality
Results of mBank Group: Loan portfolio quality Good asset quality, NPL ratio supported by the sale of impaired retail portfolio mBank Group’s impaired loans portfolio mBank Group’s NPL ratio PLN M NPL ratio +0.5% 4.2% 4.2% according to EBA 4.1% 4.1% definition has -0.1% 4.0% remained considerably 4,
Slide 21: Results of mBank Group: Capital ratio and liquidity position
Results of mBank Group: Capital ratio and liquidity position Safe capital position with significant surplus over regulatory requirements mBank Group’s Total Capital Ratio mBank’s NSFR and LCR Group’s LCR: 218% +4.90 16.81% 16.89% 17.04% 16.13% 220% 217% 16.02% 211% 2.34% 2.29% 2.33% 206% 199% 2.41%
Slide 22: Update on Poland's macroeconomic situation and outlook
Key highlights and business development in Q1 2024 Overview of the financial performance after Q1 2024 Update on Poland’s macroeconomic situation and outlook 22
Slide 23: Macroeconomic situation and outlook
Macroeconomic situation and outlook NBP unlikely to cut rates in 2024 as inflation and consumption are set to rebound. 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
Slide 24: Macroeconomic situation and outlook
Macroeconomic situation and outlook Credit growth is rebounding. Bond yields increased and PLN held 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% -5% -4% -
Slide 25: 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 26: 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 neutral GDP growth (YoY) 5.6% 0.2% 3.5% 4
Slide 27: Appendix
Appendix 27
Slide 28: Selected Financial Data: Consolidated Profit and Loss Account
Appendix: Selected Financial Data Consolidated Profit and Loss Account – quarterly Quarterly results (PLN thou.) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Net interest income 2,033,110 2,200,635 2,284,687 2,355,039 2,340,082 Net fee and commission income 501,063 487,641 482,704 444,500 484,127 Dividen
Slide 29: Selected Financial Data: Statement of Financial Position
Appendix: Selected Financial Data Consolidated Statement of Financial Position – quarterly Assets (PLN thou.) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Cash and balances with Central Bank 17,563,426 16,381,485 19,451,659 36,702,427 24,535,807 Loans and advances to banks 12,353,436 11,508,432 17,095,04
Slide 30: Selected Financial Data: mBank Group's Ratios
Appendix: Selected Financial Data mBank Group’s Ratios – quarterly and cumulatively Financial Ratios Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Net Interest Margin, quarterly 3.84% 4.33% 4.26% 4.31% 4.37% Net Interest Margin, YtD 3.84% 4.08% 4.14% 4.18% 4.37% Net Interest Margin, excl. CHF portfolio, Y
Slide 31: 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 Presented development and dynamics are PLN M adjusted for the impact of “credit holidays” -0.7% -23.9% -3.2% 3,836.9 1,605.5 3,667.8 3,678.1 1,552.2 3,
Slide 32: 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 +4.1% -0.2% +20.0% -12.6% 760.6 769.5 768.2 737.8 748.0 325.0 67.4 68.4 85.7 83.5 11% 64.9 277.9 284.0 120.6 124.5 123.5
Slide 33: 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 225.4 227.0 224.2 225.4 227.0 224.2 217.5 217.5 13.7 212.9 212.9 13.7 14.1 6% 26.6 31.6 14% 13.3 8.4 10.6 24.7 44.0 13.5 2.7 10.4 5% 23.6 8
Slide 34: 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 31.03.2024 as of 31.03.2024 Real estate 5.5% Building industry 4.3% Food sector 2.8% 0.2% 0.5% Transport and logistics
Slide 35: 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 31.03.2024 as of 31.03.2024 Nominal Issue Maturity Currency Tenor Coupon value date date Other Subordinated liabilities 5.0% Issues under Euro Medium Term Not
Slide 36: Selected Financial Data – Capital requirements
Appendix: Selected Financial Data – Capital requirements Regulatory capital requirements for mBank Group as of 31.03.2024 Countercyclical Capital Buffer (CCyB), calculated as the weighted average of the CCyB +4.90 pp rates that apply in the countries where the relevant credit exposures are located.
Slide 37: Selected Financial Data – MREL requirements
Appendix: Selected Financial Data – MREL requirements Fulfilment of MREL requirements by mBank Group MREL (TREA) MREL (TREA) Subordinated ▪ Based on MREL decision communicated to mBank on 12.04.2023, the fully-fledged MREL requirements +1.69 pp +1.37 pp set for mBank at the consolidated level, exclu
Slide 38: 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 pace of spending ✓ fully remote account opening with e-ID or a selfie and agreement approved via a text message ✓ logging in and confirmation of re
Slide 39: 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 excluding impact of "credit holidays“ -13 mBank CZSK mBank CZSK Poland +46% +33% +33% 365 354 352 47 47 45 mFinanse1 1,100.3 40 1,002.5 40 41 mKiosks 862.9 828.6
Slide 40: 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 10,476 Customer funds invested via Investment funds mBank’s solutions (31.03.2024) Brokerage assets 24,148 -5.1% +0.6% +0.2% 70,224 +0.7% 6
Slide 41: 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 -15% 13.2% -11% 11.9% -3% -4% 10,318 9,696 9,816 17,282 16,700 17,004 9,129 8,813 15,954 15,379 3,124 2,976 3,104 4,856 4,636 4,705 2
Slide 42: 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% +7% +6% Republic -3% +1% +2% physical network: light 6 branches 26,326 24,172 23,487 10,292 10,529 62,549 65,665 66,114 9,807 financial 7 centres 17 mKiosks 03/23 12/23
Slide 43: 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 44: 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 as of 31.03.2024 2 2 +32% Pomorskie 1 2 +24% 2 Zachodnio- Warmińsko- Mazurskie Pomorskie 1 1 2 1 Podlaskie 29 mBank’s branches, Kujawsko- Pomo
Slide 45: Corporate & Investment Banking – business volumes
Appendix: 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 -2.2% +3.7% -5.7% +4.7% 54,576 57,055 53,573 53,590 53,367 54,643 50,969 1,656 53,799 51,874 50,738 1,616 8,219
Slide 46: 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 47: 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 48: Historical financial results of mBank Group
Appendix: 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 -
Slide 49: Strategic financial targets of mBank Group
Appendix: Strategic financial targets of mBank Group Updated strategic financial targets of mBank Group for 2023-2025 compared to results for Q1/24 measure target level execution in Q1/24 ✓ supported by high Efficiency [in 2025] Cost/Income ratio (C/I) below 40% 30.4% interest rates offsetting infla
Slide 50: ESG well embedded in mBank Group's strategy (1/2)
Appendix: ESG well embedded in mBank Group's strategy (1/2) Environmental pillar SBTi commitment mBank joined the Science Reducing greenhouse gases (GHG) emissions of our loan portfolio, steered by SBTi as the Based Targets initiative (SBTi) in 2022. In line with most prominent driver to become net-
Slide 51: ESG well embedded in mBank Group's strategy (2/2)
Appendix: 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 man
Slide 52: mBank's share price performance
Appendix: mBank’s share price performance Polish banking stocks surged in Q1/24, significantly outperforming the broad market mBank’s index membership and weights mBank’s share performance v. main indices (rebased to 100) as of 31.03.2024 250 mBank’s share price WIG20 3.149% 240 230 31.03.2023 306.4
Slide 53: 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 2024, prepared under the International Financial Reporting Standards. For more detailed information on mBank S.A. and mB
Slide 54: 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