In Q2, mBank posted a record-high income (over PLN 2.2 billion); however, higher costs and contributions squeezed its net profit to PLN 229.7 million.
The key factors impacting on mBank Group’s financial results in Q2 2022 compared with Q1 2022 included:
· Significant increase in net interest income by PLN 189.0 million or 12.6%;
· Decrease in net fee and commission income;
· Decrease in net trading income, largely due to lower foreign exchange result;
· Lower provisions (by PLN 73.6 million) translating into a decrease in risk costs to 62 bps from 89 bps in the previous quarter;
· Decrease in costs of legal risk related to foreign currency loans to PLN 175.1 million compared with PLN 192.8 million in Q1;
· Increase in operating costs (including depreciation and amortisation) by PLN 175.5 million, driven largely by the posting of the PLN 390.8 million payment to the Institutional Protection Scheme;
· Increase in the banking tax paid by the Group to PLN 167.1 million;
· Higher income tax rate attributable to an update of the average annual effective tax rate connected with the expected impact of credit vacation on mBank’s performance in 2022.
mBank has got a solid capital base with capital ratios surpassing the regulatory requirements: CET1 ratio at 13.9% and Total Capital Ratio at 16.4%.
Loans and deposits were under increasing pressure resulting from market turbulence and interest rate rises. They grew by 8.3% and 4.7% year on year, respectively.
In pursuance of its development and ESG strategy, mBank focuses on convenient digital solutions and eco-friendly products. In Q2, it continued to finance the construction of renewable energy sources by the largest corporations. It also launched a new product – green loan for small enterprises.