In Q2 2016 mBank Group earned a net profit of PLN 388.5 million. In June the bank’s Supervisory Board approved a new strategy that should make the bank one of the three most cost-efficient and profitable banks in Poland. Focus will be put on clients’ needs and mobility.
While setting its financial targets for 2016-2020, mBank adopted ambitious assumptions with regard to cost efficiency and return on assets and equity. mBank should be among the three best banks in terms of cost-to-income ratio, return on equity and return on assets every year, adds Cezary Stypułkowski.
In addition, the bank intends to pay dividends and at the same time keep its CET1 ratio at least 1.5 p.p. above the required level. Loan-to-deposit ratio will only slightly exceed the threshold of 100%, if at all.
In Q2 2016, mBank earned a net profit of PLN 388.5 million, up by 26.2% against Q1. To a large extent the result was driven by the one-off income from the settlement of Visa Europe Limited takeover by Visa Inc. in the amount of PLN 251.7 million.
Net interest income rose by 1.2% to PLN 684.4 million mainly as a result of a 2.4% reduction in interest expenses. Net fee and commission income dropped by 1% against Q1 due to lower payment card commissions. The 29.2% decrease in net trading income against Q1 to PLN 59.5 million was attributable to lower net other trading income due to negative valuations of interest rate instruments.
The Group maintained its operating costs at a stable level, excluding a one-off write-off related to the amortisation of IT functionalities. Risk costs went up following the exceptionally low level of provisions reported in Q1. The results of the bank were also adversely affected by the bank tax.
Net of FX effects, the value of loans and advances to individuals rose by approx. 1.5%. In Q2 2016, mBank Group sold PLN 764.4 million worth of mortgage loans and PLN 1,714.5 million worth of non-mortgage loans. The dynamic growth in deposits in both segments continued, translating into a 5.1% increase in the value of client funds entrusted to mBank. As a result, the loan-to-deposit ratio of mBank stood at 94.7% after Q2.
Spokesman at mBank Poland