In Q1 2025, mBank Group posted robust operational and financial results. Net profit stood at PLN 705.7 million. This has been recognised by rating agencies. Within two months, top three agencies upgraded mBank’s ratings.
Highlights of the first three months of 2025 at mBank:
- accelerating growth of the corporate and retail credit portfolios,
- total income above the quarterly threshold of PLN 3 billion, driven by consistently strong core income,
- best-in-class operational efficiency despite a higher annual contribution to the Bank Guarantee Fund (BFG),
- declining legal provisions for FX mortgages amid a decrease in new and ongoing court disputes,
- significant capital surplus above the regulatory minima, making room for business expansion.
Excluding FX mortgages, mBank’s net profit would have exceeded PLN 1.2 billion, which translates into a return on equity (ROE) of 28.1%.
The main factors determining mBank Group’s financial results in Q1 2025 were as follows:
- Stable income compared with the previous quarter, exceeding PLN 3 billion.
- Higher overhead costs (including depreciation) of PLN 1 billion, driven by the annual contribution to the banks resolution fund.
- Risk costs of PLN 165 million, i.e. 53 basis points.
- Costs of legal risk related to FX loans at PLN 662 million, which represents a considerable drop on Q4 2024.
- Continued organic growth and business expansion as demonstrated by: increase in the retail customer base to 5,782,000 (+67,000 clients quarter on quarter), increase in the number of corporate clients to 36,516 (+393 clients quarter on quarter).
Net loans and advances stood at PLN 128 billion at the end of March 2025, which represents a PLN 6.4 billion increase on the end of 2024. Consequently, the loan-to-deposit ratio stood at 63.7% compared with 60.5% at the end of 2024.
Total Capital Ratio stood at 15.4% and the Tier 1 ratio at 14.2% at the end of March 2025.
In the period from February to April 2025, all three global rating agencies, S&P Global Ratings, Moody’s Ratings and Fitch Ratings, upgraded mBank’s ratings. The upgrade reflects significant progress in reducing the risk of CHF loans, increasing profitability and strengthening the capital base. This exceptional move confirms mBank’s solid position and its ability to continue on the growth path.