mBank Group: almost PLN 700 million net profit in the first half of 2018

mBank Group: almost PLN 700 million net profit in the first half of 2018

Growing income and profit. Rising credit sales and client base – H1 2018 in mBank Group.

In H1 2018, mBank Group reported business growth across all segments. Core income was record high, helped by stable growth in volumes, improved structure of assets, rising client base and higher number or transactions per client. In addition, net profit rose, supported by the sale of an organised part of mFinanse.
Key highlights of H1 2018:
  • Increase in net profit attributable to mBank’s shareholders by 43.0% to PLN 698.4 million compared with H1 2017.
  • Increase in total income by 19.7% year on year, driven mainly by a rise in core income (+8.6%) and the proceeds from the sale of an organised part of mFinanse in Q1 2018.
  • Rise in operating expenses (including amortisation/depreciation) by 4.4% against H1 2017 attributable to higher staff-related expenses, material costs and amortisation/depreciation, amid higher efficiency measured by the cost-to-income ratio (normalised cost-to-income ratio fell to 44.8% in H1 2018 from 46.5% in H1 2017).
  • Increase in net impairment losses and fair value change on loans and advances by 66.7%, driven by higher provisions in the corporate and retail banking segment.
  • Rise in net loans and advances by 6.1% compared with the end of 2017.
  • Growth in clients’ deposits (+6.9% compared with the end of 2017), triggered mainly by higher deposits in current accounts held by individuals.
  • Expansion on the retail loans market was reflected in the record-high sales of non-mortgage loans reaching PLN 4,331.6 million, which represents an increase by 16.9% compared with H1 2017. Additionally, there was a significant rise in the sales of mortgage loans, which stood at PLN 2,147.6 million in H1 2018, up by 19.3% compared with H1 2017.
  • As a result of simultaneous growth in loans and deposits, the loan-to-deposit ratio reached 91.6%, down from 92.3% reported at the end of 2017.
  • High client acquisition: in 2018, mBank acquired 166 thousand individual and 886 corporate clients.
  • High quality of capital base: capital ratios surpassing regulatory requirements: CET 1 ratio at 17.1%, Total Capital Ratio at 20.1%.
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