mBank posts a net profit of PLN 308 million in Q1 2016 driven by high net interest income and low provisions as well as a focus on organic growth for which the bank is well-known.
Costs dropped by 26.1% to PLN 408.8 million compared with the previous quarter as there were no negative one-off events. Net impairment losses on loans and advances fell to PLN 68.5 million, mainly thanks to the release of provisions in corporate banking. Consequently, the cost of risk reached 35 basis points in Q1 2016, compared with 52 basis points a quarter earlier.
The first three months of 2016 were also marked by continued organic growth and business expansion of mBank. Compared with the end of 2015, the number of individual clients grew by 90 thousand to 5.04 million and the number of corporate clients rose by 430 to nearly 20 thousand.Net loans and advances at the end of March 2016 amounted to PLN 77.9 billion, down by PLN 493 million compared to the level reported at the end of last year. Excluding reverse repo/buy-sell-back transactions and the FX effect, the value of net loans and advances went up by 0.9%. Compared with the previous quarter, deposits remained practically unchanged at PLN 81.1 billion. As a result, the loan to deposit ratio of mBank Group reached 96.1%, which is the lowest level reported in mBank’s history.
Capital ratios of mBank Group increased considerably after the 2015 profit was used to strengthen own funds. At the end of March 2016, total capital ratio and Common Equity Tier 1 ratio stood at 19.0% and 16.2%, respectively.
Spokesman at mBank Poland