Slide 1: Results of mBank Group Q1-Q4 2021
Results of mBank Group Q1-Q4 2021 Best result on core activity in history. Significant protection against CHF legal risks. Presentation for Investors and Analysts, 08.02.2022
Slide 2: Agenda
Agenda Key highlights of 2021 in mBank Group 2 Overview of main trends in Q4 2021 15 ▪ Business development ▪ Summary of financial results Analysis of the performance after Q4 2021 19 ▪ Loans and deposits ▪ Total income and its main components ▪ Total costs and efficiency ▪ Loan loss provisions and
Slide 3: Key highlights of 2021 in mBank Group
Key highlights of 2021 in mBank Group ▪ Record total income of PLN 6,111 million, +4.2% YoY, generated on strong performance of regular business and organic expansion Total revenues at the highest ▪ Better net interest income of PLN 4,104 million, +2.4% YoY, on upward level in history despite path t
Slide 4: Key highlights of 2021 in mBank Group
Key highlights of 2021 in mBank Group ▪ Gross loan portfolio of PLN 121.2 billion, +7.4% YoY excl. FX effect, shaped by differentiated dynamics between business segments Expansion of loans driven by ▪ New production of mortgage loans at record PLN 12.4 billion and record-high sales of mortgages rebo
Slide 5: Summary of key financial highlights for mBank Group
Summary of key financial highlights for mBank Group Total income Cost/Income ratio Net profit of Core Business 1 ROE of Core Business 1 PLN M PLN M +4.2% -0.9pp +45% +3.8pp 6,111 41.1% 40.2% 1,602.7 11.9% 5,867 1,107.3 8.1% 2020 2021 2020 2021 2020 2021 2020 2021 Gross loans to customers NPL ratio C
Slide 6: mBank's key achievements and product innovations in 2021
mBank’s key achievements and product innovations in 2021 We are constantly developing …taking into account ESG and ...and supplementing the product our offer and platform… the best customer experience... palette with related services ▪ mBank and its clients donated together PLN 20 M during the 29th
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 9.0% current deposits -146 inactive 8.2% 8.3% 8.3% accounts 4.7% term deposits 8.0% with arrears +34 7.7% 7.8% 7.5% 5,660 5,479 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 +382 2,960 customer base mBank PL 2,577 +386 372 2,128 303 1,670 234 by the number 1,329 185 967 14
Slide 9: mBank Group's financial results in 2021: Profit and Loss Account
mBank Group’s financial results in 2021: Profit and Loss Account PLN million 2019 2020 2021 ∆ YoY Net interest income 4,002.8 4,009.3 4,104.0 +2.4% Net fee and commission income 1,270.6 1,508.3 1,890.0 +25.3% Net trading and other income 251.0 349.2 117.1 -66.5% Total income 5,524.4 5,866.8 6,111.1
Slide 10: mBank Group's financial results in 2021: Balance Sheet
mBank Group’s financial results in 2021: Balance Sheet PLN million 2019 2020 2021 ∆ YoY Total assets 158,353 178,872 199,539 +11.6% Gross loans to customers 108,170 112,208 121,233 +8.0% Individual client loans 59,993 65,952 73,244 +11.1% Corporate client loans 47,786 46,025 47,836 +3.9% Customer de
Slide 11: Revenues on growth trajectory, further improvement of efficiency
Revenues on growth trajectory, further improvement of efficiency Development of mBank Group’s total income and NIM Development of mBank Group’s total costs and C/I ratio PLN M PLN M 2.69% 2.33% 2.15% Net Interest Margin 42.2% 41.1% 40.2% Cost/Income ratio +4.2% change change +3.5% +1.9% +6.2% ‘21/‘2
Slide 12: New segmentation to show genuine performance of core business
New segmentation to show genuine performance of core business Summary of financial results for mBank’s core activity and run-off portfolio in 2021 Separation of FX mortgage loan portfolio PLN million Core Business Non-core1 mBank Group ▪ In order to present the genuine and undistorted performance of
Slide 13: 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 9,064 M as of 31.12.2021 new court proceedings +16% +12% % of total loan portfoli
Slide 14: We have adopted new ESG strategy of mBank Group
We have adopted new ESG strategy of mBank Group 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 banking By 2
Slide 15: Agenda
Agenda Key highlights of 2021 in mBank Group 2 Overview of main trends in Q4 2021 15 ▪ Business development ▪ Summary of financial results Analysis of the performance after Q4 2021 19 ▪ Loans and deposits ▪ Total income and its main components ▪ Total costs and efficiency ▪ Loan loss provisions and
Slide 16: Key highlights of Q4 2021 in mBank Group
Key highlights of Q4 2021 in mBank Group ✓ Core revenues at record-high level, driven by rebounding Net interest income Net fee income net interest income and strongest fee result in history +21.9% YoY +19.7% YoY ✓ Best-in-class efficiency continued, although mounting Total costs Cost/Income ratio i
Slide 17: Summary of financial results: Profit and Loss Account
Summary of financial results: Profit and Loss Account PLN million Q4 2020 Q3 2021 Q4 2021 ∆ QoQ ∆ YoY Net interest income 976.9 1,004.8 1,190.8 +18.5% +21.9% Net fee and commission income 409.5 479.4 490.0 +2.2% +19.7% Total income 1,552.3 1,509.0 1,620.6 +7.4% +4.4% Total costs (excluding BFG) -502
Slide 18: Summary of financial results: Balance Sheet
Summary of financial results: Balance Sheet PLN million Q4 2020 Q3 2021 Q4 2021 ∆ QoQ ∆ YoY Total assets 178,872 208,152 199,539 -4.1% +11.6% Gross loans to customers 112,208 123,210 121,233 -1.6% +8.0% Individual client loans 65,952 73,124 73,244 +0.2% +11.1% Corporate client loans 46,025 49,883 47
Slide 19: Agenda
Agenda Key highlights of 2021 in mBank Group 2 Overview of main trends in Q4 2021 15 ▪ Business development ▪ Summary of financial results Analysis of the performance after Q4 2021 19 ▪ Loans and deposits ▪ Total income and its main components ▪ Total costs and efficiency ▪ Loan loss provisions and
Slide 20: Results of mBank Group: Loans to customers
Results of mBank Group: Loans to customers Loan portfolio expansion driven by strong momentum of retail exposures Development of gross loans and advances to customers Gross loans to corporate customers PLN M PLN M +3.9% +8.0% +3.9% -4.1% +7.4% -1.6% -3.9% -1.9% 46,025 48,901 49,635 49,883 47,836 123
Slide 21: Results of mBank Group: New lending business
Results of mBank Group: New lending business Sales of housing loans kept high, consumer lending broadly returned to pre-pandemic level Sales of mortgage loans Sales of non-mortgage loans PLN M, by quarter PLN M, by quarter -1% +45% -8% -8% -9% 3,424 3,172 2,570 2,717 2,950 2,916 2,481 2,855 2,156 36
Slide 22: Results of mBank Group: Customer deposits
Results of mBank Group: Customer deposits Strong inflows to transactional accounts, intentional reduction of corporate deposits Development of customer deposits Deposits from corporate customers PLN M PLN M +19.4% +16.1% +19.5% -14.0% -2.6% +16.2% -14.1% -2.6% 54,479 164,142 47,862 49,095 46,849 156
Slide 23: Results of mBank Group: Total income
Results of mBank Group: Total income Record-high core revenues driven by soaring net interest income and strong fee result Development of mBank Group’s total income Development of interest income PLN M PLN M Sale of bonds: +21.5% +4.4% Q4/20 Q1/21 +19.0% +19.0% +7.4% 92.7 89.4 1,291.7 1,620.6 1,063.
Slide 24: Results of mBank Group: Total costs and efficiency
Results of mBank Group: Total costs and efficiency Best-in-class efficiency maintained, staff costs down to a more normalized level Development of mBank Group’s operating costs Cost/Income ratio of mBank Group – quarterly PLN M +13.7% Excluding 43.2% 42.5% 43.0% +X.X% +11.0% the BFG 38.8% -3.4% 37.3
Slide 25: 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 increased provisioning amid persisting uncertainties Net impairment losses and fair value change on loans mBank Group’s cost of risk, by segment PLN M bps 119 +10% 98 +48% +48% 289.8 80 97 69 0.5 59 262.
Slide 26: Results of mBank Group: Loan portfolio quality
Results of mBank Group: Loan portfolio quality Robust asset quality confirmed by resilient risk indicators, additional support from NPL sales mBank Group’s impaired loans portfolio mBank Group’s NPL ratio PLN M According to -12.5% 4.8% 4.6% EBA definition, 4.4% consolidated -3.9% 4.0% 3.9% NPL ratio
Slide 27: Results of mBank Group: Capital ratio and liquidity position
Results of mBank Group: Capital ratio and liquidity position Sound capital position and outstanding liquidity securing safety and operational stability mBank Group’s Total Capital Ratio mBank’s NSFR and LCR The impact of negative bond valuation on capital ratios Group’s LCR: 216% amounted to -0.4 p.
Slide 28: Agenda
Agenda Key highlights of 2021 in mBank Group 2 Overview of main trends in Q4 2021 15 ▪ Business development ▪ Summary of financial results Analysis of the performance after Q4 2021 19 ▪ Loans and deposits ▪ Total income and its main components ▪ Total costs and efficiency ▪ Loan loss provisions and
Slide 29: Macroeconomic situation and outlook
Macroeconomic situation and outlook High demand meets supply bottlenecks and inflation follows Consumer sentiment 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.19 Jul.19 Jan.20 Ju
Slide 30: Macroeconomic situation and outlook
Macroeconomic situation and outlook Demand for credit picked up, as expected 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 Oct.13 Jul.14 Apr.15 Jan.16 Oct.16
Slide 31: 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 positive GDP growth (YoY) -2
Slide 32: Agenda
Agenda Key highlights of 2021 in mBank Group 2 Overview of main trends in Q4 2021 15 ▪ Business development ▪ Summary of financial results Analysis of the performance after Q4 2021 19 ▪ Loans and deposits ▪ Total income and its main components ▪ Total costs and efficiency ▪ Loan loss provisions and
Slide 33: Appendix: Selected Financial Data
Appendix: Selected Financial Data Consolidated Profit and Loss Account – quarterly Quarterly results (PLN thou.) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Net interest income 976,930 946,895 961,537 1,004,845 1,190,766 Net fee and commission income 409,471 468,060 452,569 479,438 489,954 Dividend inco
Slide 34: Appendix: Selected Financial Data
Appendix: Selected Financial Data Consolidated Statement of Financial Position – quarterly Assets (PLN thou.) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Cash and balances with Central Bank 3,968,691 16,355,429 16,523,318 18,015,638 12,202,266 Loans and advances to banks 7,354,268 7,381,296 9,750,443 14
Slide 35: Appendix: Selected Financial Data
Appendix: Selected Financial Data mBank Group’s Ratios – quarterly and cumulatively Financial Ratios Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Net Interest Margin, quarterly 2.21% 2.10% 2.04% 2.02% 2.42% Net Interest Margin, YtD 2.33% 2.10% 2.07% 2.05% 2.15% Net Interest Margin, excl. CHF portfolio, Y
Slide 36: 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 +21.5% +19.0% +19.0% +17.0% +25.3% +25.3% 1,291.7 87.4 7% 101.0 4.4 31.1 2% 1,085.4 0% 15.8 16% 1,063.2 1,035.2 141.0 11% 86.3 1,019.4 89.1 78.0
Slide 37: 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 +18.4% +15.9% +3.5% +6.5% 723.7 698.9 233.7 645.9 646.3 71.8 10% 219.5 67.6 611.1 201.7 55.9 62.8 193.8 62.4 111.8 15% 1
Slide 38: 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 208.2 208.2 198.5 199.5 198.5 199.5 194.2 194.2 16.5 23.7 13.7 7% 22.0 19.0 10% 16.7 6.9 178.9 21.6 178.9 16.7 2.6 6.5 3% 8.8 6.2 6.8 15.5
Slide 39: 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 31.12.2021 as of 31.12.2021 Real estate 5.5% Building industry 3.8% Transport and logistics 2.7% 0.4% 0.1% Food sector
Slide 40: 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 31.12.2021 as of 31.12.2021 Nominal Issue Maturity Currency Tenor Coupon Other value date date Subordinated liabilities 3.5% Issues under Euro Medium Term Not
Slide 41: Appendix: Selected Financial Data – Capital Requirements
Appendix: Selected Financial Data – Capital Requirements Regulatory capital requirements for mBank Group as of 31.12.2021 +3.41 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 42: 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 a selfie and agreement approved via a text message pace of spending ✓ logging in and confirmation of recent tra
Slide 43: 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 -16 mBank CZSK +52% mBank CZSK Poland +27% 383 366 367 41 43 45 mFinanse1 493.9 42 33.0 40 40 mKiosks 390.1 324.3 347.6 28.0 161 16.8 273.5 17.7 149 149 Advisory
Slide 44: 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 +11.1% +14.8% +0.2% +3.2% 73,124 73,244 112,446 70,093 106,700 108,921 67,785 103,583 220 65,952 201 212 8,233 7% 97,976 185 8,827 8,675 20
Slide 45: 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 +34% +14% +2% 13.4% -2% 14.0% 9,608 9,825 15,153 15,502 16,036 15,791 9,031 13,819 8,219 7,311 2,946 2,981 4,511 4,541 4,667 4,773 2,
Slide 46: 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 +24% +25% +9% Republic -5% 0% +6% physical network: light 7 branches 62,616 28,608 28,503 7,256 7,657 54,569 59,569 financial 23,075 6,136 5 centres 19 mKiosks 12/20 09/21 1
Slide 47: 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 48: 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 2 1 2 Pomorskie 2 Warmińsko- -11% Zachodnio- Mazurskie 1 1 Pomorskie 2 1 Podlaskie 29 mBank’s branches, Kujawsko- Pomorskie 4 2 incl. 13
Slide 49: 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 +3.9% +19.4% -4.1% -14.0% 48,901 49,635 49,883 54,479 47,836 46,025 3,882 49,095 8,091 8,525 8,888 47,862 46,849 7,659 9,218 3,65
Slide 50: 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 51: 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 52: 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 53: Appendix: mBank's share price performance
Appendix: mBank’s share price performance Banking stocks recovered significantly in 2021, mBank performed better than the index mBank’s index membership and weights mBank’s share performance v. main indices (rebased to 100) – last 12 months as of 31.12.2021 320 mBank’s share price WIG30 2.142% 300 3
Slide 54: Disclaimer
Disclaimer This presentation has been prepared by mBank S.A. for information purposes only and is based on the non-audited financial data of mBank Group for the fourth quarter of 2021, prepared under the International Financial Reporting Standards. For more detailed information on mBank S.A. and mBa
Slide 55: 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