The profit before income tax generated by mBank Group in Q1 2021 stood at PLN 504.3 million, while net profit attributable to the owners of mBank reached PLN 317.1 million. In Q1 2021 total income decreased slightly while total costs increased compared to the previous quarter. The main factors determining the Group’s financial results in Q1 2021 were as follows:
- Lower total income at the level of PLN 1 538.8 million, down -0,9% compared to Q4 2020. Net fee and commission income and net trading income increased, while net interest income declined in the period under review;
- Increase of total costs (including depreciation) compared to the previous quarter to the level of PLN 664.7 million due to recognition of the annual contribution to the resolution fund of the Bank Guarantee Fund (BFG);
- Lower cost of risk (sum of impairment on financial assets not measured at fair value through profit or loss and gains or losses from non-trading loans and advances mandatorily measured at fair value through profit or loss) at the level of PLN 164.7 million or 59 b.p. compared to 96 b.p. in Q4 2020;
- Result on provisions for legal risk related to foreign currency loans set up in Q1 2021 at PLN 66.3 million compare to PLN 633.0 million in Q4 2020;
- Increase in tax on the Group’s balance sheet items on a quarterly basis to PLN 138.8 million;
- Continued organic growth and business expansion as demonstrated by:
- increase in the number of corporate customers to 29 662 (+579 clients compared to the end of 2020), while the number of retail clients declined to 5 517.3 thousand due to closing of inactive accounts;
- increase in the sale of non-mortgage loans by 26% compared to the previous quarter.
At the end of Q1 2021 net loans and advances to customers amounted to PLN 113 244.4 million. They increased by PLN 4 677.0 million or +4.3% quarter on quarter. Gross loans to corporate customers grew by PLN 2 875.1 million (+6.2%) to PLN 48 900.6 million compared with the previous quarter. The volume of loans to individuals went up by PLN 1 833.9 million or by 2.8% against the end of December 2020 and reached PLN 67 785.5 million. In Q1 2021, amounts due to customers rose by PLN 14 398.5 million or by 10.5% quarter on quarter. Amounts due to corporate customers increased by PLN 8 625.9 million or by 22.0% quarter on quarter and at the end of March 2021 reached PLN 47 682.0 million. Amounts due to individual customers grew by PLN 5 606.5 million or by 5.7% quarter on quarter and amounted to PLN 103 582.8 million.