In 2022, mBank Group reported a net loss of PLN 703 million. It marked the second negative result in a row. However, the loss did not by any means result from the weakness of its core business, but was caused by the state interventions and the bank’s decision to book high legal risk provisions against foreign currency loans in the amount of more than PLN 3.1 billion. Net of the said burdens, the pre-tax profit on ongoing operational activity would have exceeded PLN 4.9 billion, the best in mBank’s history.
mBank’s total revenues reached the record-high level of PLN 7.8 billion, up by more than 28% year on year. The largest component was net interest income, which grew by 43% year on year to PLN 5.9 billion. The key determinant of this dynamic growth was the unprecedented scale of interest rate hikes. It was accompanied by a better margin, which annually stood at 3.7%, excluding the “credit holidays” effect in the amount of PLN 1.3 billion.
In addition, the bank reported further dynamic growth in its net fee and commission income. Improved client activity coupled with transaction turnover secured a continued two-digit growth of 14% year on year to PLN 2.1 billion.
Costs grew significantly due to the contributions to the protection scheme (IPS) in the amount of PLN 428 million and the Borrower Support Fund in the amount of PLN 171 million. Net of mandatory contributions, total expenses went up by 11% against 2021. Maintained budgetary discipline led to excellent efficiency, which is best proven by the normalised cost/income ratio at 34.4%, a value beyond the reach of most local competitors.
Despite new threats, i.e. the war in Ukraine and energy crisis, mBank Group’s risk costs dropped to 68 basis points, which reflects the high resilience of the companies and individuals financed by us to the negative developments.
Gross loans, net of the FX effect, grew by 1% to PLN 123 billion in 2021. The poor growth rate was caused by, among others, the effect of adjustments made to the portfolio due to “credit holidays” and provisions for CHF loans.
Funds accumulated by mBank clients rose by 11% year on year to PLN 174 billion. As interest rates became gradually more attractive, deposits gained in significance at the expense of current accounts.
Last year, the bank paid a great deal of attention to capital management. Measures aimed at strengthening capital ratios included two successful synthetic securitisation transactions on the credit portfolio with the total nominal value of approx. PLN 12.6 billion. As a result, the consolidated Tier 1 ratio stood at 13.9% and the TCR was equal to 16.4% at the end of 2022.
The bank also continued its settlement programme addressed to CHF borrowers. Clients appreciate the initiative. They signed over 3,200 settlements with mBank. Any client who has not received the settlement offer may apply for it independently at mbank.pl/ugody or wait for the bank to contact them with a proposal. Settlements offered to clients may be negotiated.