In the last three months of 2024, mBank Group recorded the highest quarterly result in its history with net profit at PLN 986 million. Also the 2024 annual net profit hit a record high of PLN 2.2 billion.
In Q4 2024, net interest income stood at PLN 2.5 billion, down by 2.3% quarter on quarter. Compared with Q3 2024, mBank Group’s net interest margin declined slightly, reaching 4.27% in the last three months of 2024. On the other hand, net fee and commission income was stable, amounting to PLN 497 million.
Q4 2024 saw seasonal growth in mBank Group’s costs. They went up by 11.3% against Q3 and reached PLN 905 million. The growth was mainly driven by higher staff-related expenses (up by 13.9%) arising from salary increases. At the same time, material costs went up by 2.3% primarily due to spending on consulting and marketing services. Nevertheless, the cost-to-income ratio remained below 30%.
mBank Group’s loan loss provisions fell by 8.4% quarter on quarter to PLN 175.0 million. This also marked a decrease in risk costs to 57 basis points against 62 basis points in Q3.
Costs of legal risk related to FX loans at the level of PLN 932 million had a significant adverse impact on mBank Group’s operating profit. At the same time, the bank signed 3,383 settlements with borrowers in Q4 2024. The total number of settlements signed stood at nearly 23,000 at the end of the year.
In Q4 2024, mBank as the very first commercial bank in Poland issued AT1 bonds to a wide range of investors. The bonds were classified as Tier 1 capital. Polish financial institutions became eligible to issue such bonds at the end of the previous year owing to changes in the law. The demand for the bonds amounted to PLN 1.76 billion, which allowed the bank to reach the maximum assumed issue value of PLN 1.5 billion.