The beginning of 2014 saw mBank's profits hitting an all-time high. The institution generated record-high core income and net profit. It was achieved due to the stable total income and maintained cost management as well as a drop in risk costs.
The improvement of net interest income was possible owing to considerable reduction of costs of deposit acquisition. The bank managed to improve net fee and commission income again – in Q1 2014 it reached PLN 241.4 million, up by 30 percent YoY. “Our ambition was to raise mBank's efficiency. We are especially pleased with the regular drop in the cost to income ratio from 48.3 percent following Q1 2013 to 45.0 percent after Q1 2014”, explained Cezary Stypułkowski.
The beginning of this year brought also a significant growth in the client base, both in the retail banking segment (by 59 thousand clients compared with the end of 2013), and in the corporate banking (267 new companies). Loans and borrowings granted to mBank clients – after excluding the FX effect – increased in Q1 by 3.5 percent. A similar growth (3.9 percent excluding repo transactions) was reported for deposits.From the beginning of 2014 mBank Group has been reporting capital ratios in accordance with the Basel III regulations. Nevertheless, they remained at a high and secure level: Core Tier 1 reached 13.6 percent and CAR 16.3 percent. In March 2014 mFinance France carried out another issue of Eurobonds with a nominal value of EUR 500 million, maturing in 2019.As regards to retail banking in February 2014 the bank launched another part of the new mBank project – mobile banking built from scratch. It was well received by the clients – only in the first month from its premiere it was downloaded 200 thousand times, and the activity of existing clients in the mobile environment doubled.
mBank was appreciated both by the clients and external experts. In Q1 2014 in the Golden Banker contest, the institution received awards for the best personal account, the best bank for companies and the best bank in social media. mBank received the largest number of nominations in all categories and hence it won the main award in the competition – The Golden Bank Award. The new transactional service was awarded in the awards competition organised by Bank Innovation, an American banking industry website. It also won first place in the: Digital Model Bank category in a competition organised by a research and consulting company Celent Research, in which 80 banks from around the world took part.