Slide 1: Results of mBank Group Q1 2023
Results of mBank Group Q1 2023 Strong operating performance and a good start to the year Presentation for Investors and Analysts, 28.04.2023
Slide 2: Agenda
Agenda Key highlights of Q1 2023 2 ▪ Business development ▪ Summary of financial results Analysis of the performance after Q1 2023 12 ▪ 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 2023 in mBank Group
Key highlights of Q1 2023 in mBank Group ✓ Core revenues back on upward trend thanks to increase Net interest income Net fee income of net interest income and improving net fees +6.0% QoQ +7.1% QoQ ✓ Efficiency at excellent level despite high inflation, wage Total costs Cost/Income ratio pressure an
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 PLN M +18% -5.9pp +41% +9.8pp 2,561 38.7% 989 33.5% 2,179 33.4% 703 23.7% 32.0% 28.7% Q1/22 Q1/23 Q1/22 Q1/23 Q1/22 Q1/23 Q1/22 Q1/23 Gross loans to customers
Slide 5: Highlights of recent activities executing mBank's ESG strategy
Highlights of recent activities executing mBank's ESG strategy mBank introduced a mobile verification of mBank co-financed the construction of the first the identity of its employees contacting clients large-scale solar and wind farm in Poland ▪ Security of remote contacts with mBank has ▪ mBank was
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 closing of 9.3% current deposits 9.1% inactive accounts -18 +33 8.5% term deposits 8.8% with arrears 8.7% 8.3% 8.3% 8.4% 5,660 5,514 5,642 5
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 by the share thousand #1 of mobile users average +95 +95 growth in total active mBank CZSK per year 3,338 3,434 customer base mBank PL +395 2,960 419 436 2,577 372 2,128 303 1,670 234 by th
Slide 8: Summary of financial results: Profit and Loss Account
Summary of financial results: Profit and Loss Account PLN million Q1 2022 Q4 2022 Q1 2023 ∆ QoQ ∆ YoY Net interest income 1,506.6 1,974.5 2,092.4 +6.0% +38.9% Net fee and commission income 590.7 467.8 501.1 +7.1% -15.2% Total income 2,178.6 2,434.0 2,561.0 +5.2% +17.6% Total costs (excl. obligatory
Slide 9: Summary of financial results: Balance Sheet
Summary of financial results: Balance Sheet PLN million Q1 2022 Q4 2022 Q1 2023 ∆ QoQ ∆ YoY Total assets 203,237 209,892 217,529 +3.6% +7.0% Gross loans to customers 126,403 123,437 124,800 +1.1% -1.2% Individual client loans 74,763 71,122 70,224 -1.3% -6.0% Corporate client loans 51,469 52,207 54,4
Slide 10: Strong protection against legal risks and ongoing settlement program
Strong protection against legal risks and ongoing settlement program CHF mortgage loans to individual customers (CHF M, net) Summary of pending court cases and severity of verdicts portfolio deductions due to legal risks PLN 4,961 M as of 31.03.2023 Number of individual court cases Distribution of f
Slide 11: Robust performance of the core business demonstrated in Q1 2023
Robust performance of the core business demonstrated in Q1 2023 Summary of financial results for mBank’s core activity and run-off portfolio in Q1/23 Separation of FX mortgage loan portfolio PLN million Core Business Non-core1 mBank Group ▪ In order to present the genuine and undistorted performance
Slide 12: Agenda
Agenda Key highlights of Q1 2023 2 ▪ Business development ▪ Summary of financial results Analysis of the performance after Q1 2023 12 ▪ Loans and deposits ▪ Total income and its main components ▪ Total costs and efficiency ▪ Loan loss provisions and portfolio quality ▪ Capital and liquidity position
Slide 13: Results of mBank Group: Loans to customers
Results of mBank Group: Loans to customers Subdued growth of loan portfolio observed in both business segments Development of gross loans and advances to customers Gross loans to corporate customers PLN M PLN M +5.8% -1.3% +5.6% +4.3% -1.8% +1.1% +4.5% 51,469 53,957 55,375 52,207 54,476 126,403 129,
Slide 14: Results of mBank Group: New lending business
Results of mBank Group: New lending business Small uptick in new mortgage lending, accompanied by improving sales of consumer credit Sales of mortgage loans Sales of non-mortgage loans PLN M, by quarter PLN M, by quarter 2,829 -76% -24% 118 217 2,139 2,793 +13% +13% 2,555 59 193 +37% 578 551 2,212 1
Slide 15: Results of mBank Group: Customer deposits
Results of mBank Group: Customer deposits Continued increase of deposit base anchored in strong inflows from retail clients Development of customer deposits Deposits from corporate customers PLN M PLN M +2.7% +11.8% +2.7% +2.6% +3.9% +11.8% +2.8% +4.0% 49,934 49,334 51,055 49,981 51,295 180,917 170,
Slide 16: Results of mBank Group: Total income
Results of mBank Group: Total income Total revenues at record-high level thanks to active management of net interest income Development of mBank Group’s total income Development of interest income PLN M Total negative impact PLN M of “credit holidays” on +9% +111% +9% +17.6% revenues in 2022 +5.2% r
Slide 17: Results of mBank Group: Total costs and efficiency
Results of mBank Group: Total costs and efficiency Pace of underlying operating costs maintained below inflation rate, excellent efficiency Development of mBank Group’s operating costs Cost/Income ratio of mBank Group – quarterly PLN M Costs in H2/22 were impacted +12.4% 76.7% excluding "credit by a
Slide 18: Results of mBank Group: Loan loss provisions and cost of risk
Results of mBank Group: Loan loss provisions and cost of risk Provisioning level reflecting prudent risk management amid tougher market conditions Net impairment losses and fair value change on loans mBank Group’s cost of risk, by segment PLN M bps 89 -11.3% 79 76 268.5 89 70 68 0.8 +26.6% 79 238.2
Slide 19: Results of mBank Group: Loan portfolio quality
Results of mBank Group: Loan portfolio quality Good asset quality confirmed by risk indicators, minor deterioration in microfirms segment mBank Group’s impaired loans portfolio mBank Group’s NPL ratio PLN M According to +0.9% 4.0% EBA definition, 4.0% 4.0% +0.8% 3.9% 3.8% consolidated NPL ratio was:
Slide 20: Results of mBank Group: Capital ratio and liquidity position
Results of mBank Group: Capital ratio and liquidity position Capital position safely surpassing regulatory requirements, ample liquidity level mBank Group’s Total Capital Ratio mBank’s NSFR and LCR Group’s LCR: 224% +2.87 16.39% 16.36% 206% 15.92% 15.75% 2.46% 14.66% 187% 184% 186% 2.45% 2.55% 2.41%
Slide 21: Agenda
Agenda Key highlights of Q1 2023 2 ▪ Business development ▪ Summary of financial results Analysis of the performance after Q1 2023 12 ▪ Loans and deposits ▪ Total income and its main components ▪ Total costs and efficiency ▪ Loan loss provisions and portfolio quality ▪ Capital and liquidity position
Slide 22: Macroeconomic situation and outlook
Macroeconomic situation and outlook Economic slowdown + inflation tops ! = real disinflation. Consumption close to the bottom 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.21 Jan.22 O
Slide 23: Macroeconomic situation and outlook
Macroeconomic situation and outlook Deleveraging. Rates and EUR/PLN passed their peaks. Corporate loans and deposits (YoY, FX-adjusted) Household loans and deposits (YoY, FX-adjusted) 30% 12% Source: NBP Source: NBP 25% 10% 20% 8% 15% 6% 4% 10% 2% 5% 0% 0% -2% -5% -4% -10% -6% Jan.13 Jan.14 Jan.15 J
Slide 24: Macroeconomic forecasts and outlook for mBank Group
Macroeconomic forecasts and outlook for mBank Group Operating environment for banks has continued being unfavourable and hardly predictable Key economic indicators for Poland Short-term prospects for mBank (compared to Q1/23) 2021 2022 2023F 2024F Net interest income & NIM slightly negative GDP grow
Slide 25: Agenda
Agenda Key highlights of Q1 2023 2 ▪ Business development ▪ Summary of financial results Analysis of the performance after Q1 2023 12 ▪ Loans and deposits ▪ Total income and its main components ▪ Total costs and efficiency ▪ Loan loss provisions and portfolio quality ▪ Capital and liquidity position
Slide 26: Selected Financial Data
Appendix: Selected Financial Data Consolidated Profit and Loss Account – quarterly Quarterly results (PLN thou.) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Net interest income 1,506,592 1,695,946 732,219 1,974,482 2,092,426 Net fee and commission income 590,737 547,772 513,818 467,750 501,063 Dividend
Slide 27: Selected Financial Data
Appendix: Selected Financial Data Consolidated Statement of Financial Position – quarterly Assets (PLN thou.) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Cash and balances with Central Bank 17,971,383 12,522,901 20,488,126 16,014,318 16,477,981 Loans and advances to banks 6,829,976 8,547,677 9,654,087 9
Slide 28: Selected Financial Data
Appendix: Selected Financial Data mBank Group’s Ratios – quarterly and cumulatively Financial Ratios Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Net Interest Margin, quarterly 3.17% 3.56% 4.02% 4.03% 3.95% Net Interest Margin, YtD 3.17% 3.37% 3.59% 3.70% 3.95% Net Interest Margin, excl. CHF portfolio, Y
Slide 29: 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 +7% +7% +15% +108% 7.1x 3,586.5 1,546.2 3,364.5 227.5 7% 3,160.5 40.1 16.2 35.5 1% 0.5% 1,349.9 Presented development and 198.4 15.4 409.7 27% dy
Slide 30: 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 -6.1% +21.4% -0.7% -13.9% 785.7 759.8 742.7 275.0 67.5 737.9 737.8 63.8 56.3 60.2 64.9 9% 236.7 124.8 224.1 136.3 121.8
Slide 31: 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 217.5 217.5 205.7 209.9 205.7 209.9 203.2 202.2 203.2 202.2 13.3 6% 23.6 11% 12.7 4% 23.1 13.6 11.5 8.6 19.2 27.4 13.4 7.6 2.7 1% 24.4 7.9
Slide 32: 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 31.03.2023 as of 31.03.2023 Real estate 5.3% Financial activities 4.3% Building industry 4.3% 0.1% 0.3% Food sector 2.9
Slide 33: 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 31.03.2023 as of 31.03.2023 Nominal Issue Maturity Currency Tenor Coupon value date date Other Subordinated liabilities 4.2% Issues under Euro Medium Term Not
Slide 34: Selected Financial Data – Capital requirements
Appendix: Selected Financial Data – Capital requirements Regulatory capital requirements for mBank Group as of 31.03.2023 Countercyclical Capital Buffer (CCyB) is calculated as the weighted average of +2.87 pp the countercyclical buffer rates that apply in the countries where the relevant credit exp
Slide 35: 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 36: 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“ and Borrowers’ Support Fund 0 mBank CZSK mBank CZSK Poland +49% -11% -11% 365 365 365 843.2 45 46 47 mFinanse1 45.0 751.1 4
Slide 37: 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 -6.1% +16.1% +5.0% -1.3% 74,763 75,388 129,043 73,173 71,122 70,224 122,890 201 118,549 221 111,174 109,914 219 28% 21,131 21,272 31,172 24
Slide 38: 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 +1% +9% 14.7% 13.4% 0% +2% 10,204 10,262 10,625 10,268 10,318 17,379 16,977 17,282 15,916 16,252 3,069 3,098 3,278 3,154 3,124 5,037
Slide 39: 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 -7% +17% +7% Czech Republic -2% +1% +1% physical network: light 7 branches 28,281 26,975 26,326 62,053 62,549 9,663 9,807 58,473 financial 8,358 7 centres 18 mKiosks 03/22 12/22 0
Slide 40: 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 41: 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 31.03.2023 2 2 +41% 2 Pomorskie 1 2 Warmińsko- Zachodnio- Mazurskie -13% Pomorskie 2 1 1 1 Podlaskie 29 mBank’s branches, Kujawsko- Pomo
Slide 42: 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 +5.7% +2.3% +4.3% +1.2% 55,504 54,576 54,095 51,182 51,704 51,241 51,874 52,315 50,689 51,640 1,865 1,229 1,683
Slide 43: 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 44: 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 45: 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 2030 we will reach climate neutrality in scope 1 and 2. We support customers in safe and convenie
Slide 46: Historical financial results of mBank Group
Appendix: Historical financial results of mBank Group PLN million 2018 2019 2020 2021 2022 ∆ YoY Net interest income 3,496.5 4,002.8 4,009.3 4,126.3 5,909.2 +43.2% Net fee and commission income 1,257.8 1,270.6 1,508.3 1,867.8 2,120.1 +13.5% Net trading and other income 325.3 251.0 349.2 117.1 -187.2
Slide 47: mBank's share price performance
Appendix: mBank’s share price performance Market uncertainty and risks related to election year worsen sentiment to banking stocks mBank’s index membership and weights mBank’s share performance v. main indices (rebased to 100) – last 12 months as of 31.03.2023 110 WIG20 1.902% 105 WIG30 1.910% 100 W
Slide 48: 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 2023, prepared under the International Financial Reporting Standards. For more detailed information on mBank S.A. and mB
Slide 49: 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 Magdalena Hanuszewska +48 510 479 500 magdalena.hanuszewska@mbank.pl Paweł Lipiński +48 5