In 2017, mBank Group generated the highest revenues in history, with the total income at PLN 4,454 million. Even with the Visa transaction included in the 2016 base, the income went up by 3.7%. The institution owes its results to the organic business growth and offer expansion.
In Q4 2017, mBank Group earned a profit of PLN 311.6 million, up by 6.9% against Q3. The income stood at PLN 1,141.5 million. The 3.6% increase in net interest income offset the -9.0% drop in net fee and commission income.
The net interest margin of mBank Group increased quarter on quarter and reached 2.6% in Q4 2017, compared with 2.5% in Q3 2017. Net commission income dropped due to lower income from payment cards and brokerage operations, and higher commission expenses. Net trading income decreased by 12.2% quarter on quarter. The drop was driven by the foreign exchange result, whereas other net trading income increased in the period under review.
In Q4 2017, total overhead costs of mBank Group (including amortisation/depreciation) stood at PLN 494.5 million, representing an increase of 1.8% quarter on quarter. Staff-related expenses grew slightly (0.7%), whereas material costs fell by 3.3% thanks to lower IT and consulting services costs. As a result of these factors, mBank reported slight growth of the cost/income ratio from 42.3% in Q3 2017 to 43.3% in Q4 2017.
Net impairment losses on loans and advances in mBank Group amounted to PLN 140.0 million in Q4 2017. They decreased by PLN 24.2 million, i.e. 14.9%, quarter on quarter. A quarter-on-quarter decrease in created provisions occurred in the corporate area, while the provisions in the retail segment grew slightly.
In addition, new products were introduced in the offer in Q4 2017. mBank, as the very first bank in Poland, made a multi-currency debit card available to its clients. The card gives access to 150 currencies and clients do not have to pay any fees for conversion. The card (VISA Aquarius Świat) is available in mBank’s premium offer. Its holders do not need to open a dedicated account in a foreign currency. Moreover, a new version of the eMakler transactional system was introduced, thanks to which clients can now manage their investments in an easier and more convenient way. They also have access to the mobile application, which used to be available only to the holders of brokerage accounts with Dom Maklerski mBanku.
mBank Group ended the year 2017 with record-high revenues at PLN 4.45 billion and a profit of PLN 1,092 million.