Stable Income and Client Acquisition in Q3 2013

Stable Income and Client Acquisition in Q3 2013

The profit of BRE Bank Group reached PLN 875.5 million after nine months of the year. The bank acquired 192 thousand retail clients and more than 900 corporate clients in the three quarters. The new transactional service of mBank is popular with clients and currently serves 2 million users.

“We generated a net profit of more than PLN 279 million in Q3, which proves that BRE Bank is a stable and very profitable institution. We continue with our robust organic growth,” said Cezary Stypułkowski, President of BRE Bank.

“I also need to stress that we have worked very hard, not only to modernise electronic banking for retail clients and develop one of the most advanced systems world-wide but also to launch our rebranding, which will complete its next stage on 25 November when the entire Group adopts one single name: mBank. Despite these challenges, we have maintained our cost discipline as measured by the cost/income ratio at the level of 46 percent,” said Mr Stypułkowski.

In September, BRE Bank relied on the confidence of international investors and successfully completed the first-ever issue of euronotes denominated in the Swiss franc. The CHF 200 million notes ensure financing for 5 years and have been highly rated (Fitch rating “A”, S&P rating “BBB+”).

Retail Banking

The retail banking segment reported a pre-tax profit of PLN 213 million in Q3 2013. The main profit drivers included net interest income, which increased by 4.7 percent QoQ and reached PLN 361.9 million, and the net fee and commission income, which stood at PLN 127 million and increased by 7.9 percent. Although clients remain cautious about taking on new borrowing, the loan portfolio increased by 2.7 percent YoY and reached PLN 39 billion. Retail clients’ savings increased by 13.7 percent to PLN 32.6 billion.The bank implemented a new innovative solution in Q3: the Online Expert service, which is a virtual outlet where clients can do most banking operations via a video or audio connection or chat. Furthermore, BRE Bank and five other banks entered into an agreement to develop a local common mobile payment standard.

Corporate Banking and Financial Markets

The Corporates and Institutions segment reported a profit of PLN 126.9 million in Q3.The Bank has addressed market and client needs by launching the mBank Polish Corporate Bond Index, the first corporate bond index in Poland and in the region. It is a total return index designed to track the performance of bonds. The index portfolio covers the most liquid corporate bonds listed on Catalyst.The activity of BRE Group has been appreciated by clients and awarded by external experts. mBank was named the best mobile banking institution and MultiBank was named one of the best brick-and-mortar banks for the third time in the 12th edition of the prestigious Newsweek Friendly Bank ranking in 2013. mBank’s new transactional service has received two awards in the global Efma competition “Distribution and Marketing Innovation Awards”. The Bank outpaced 158 banks from 54 countries on five continents. By votes of bankers representing an organisation which groups over 3.3 global companies, mBank received the Digital and Mobile Excellence award and was named The Most Disruptive Innovation in global banking.