mBank Group earns PLN 285 million in Q3 2018.

mBank Group earns PLN 285 million in Q3 2018.

mBank closes Q3 2018 with record-high core income with a focus on organic growth and business expansion.

The main factors determining the performance of mBank Group in Q3 2018 included:
  • Stable income at PLN 1,210.0 million (+0.1% quarter on quarter), helped by rising net interest income (+5.6% quarter on quarter), compensating for lower net commission income and net other income.
  • Higher operating expenses (including depreciation and amortisation) compared with Q2 2018, at PLN 531.5 million.
  • Reduced loan loss provisions amounting to PLN 185.1 million (risk costs stood at 82 basis points compared with 99 basis points in Q2 2018).
  • Higher tax on the Group’s balance sheet items at PLN 103.4 million, up from Q2 2018.
  • Continued organic growth and business expansion as demonstrated by: increase in the number of individual clients to 5,603.2 thousand (+94.8 thousand clients compared with the end of June 2018) and increase in the number of corporate clients to 23,327 (+393 clients compared with the end of June 2018).
At the end of September 2018, net loans and advances to clients amounted to PLN 91.3 billion, which represents a PLN 1.7 billion increase (+1.9%) compared with the end of September 2018. Net of reverse repo/buy-sell-back transactions and the FX effect, loans and advances grew by 2.5%.Amounts due to clients rose by PLN 4.6 billion (+4.7%) quarter on quarter to PLN 102.4 billion (amounts due to corporate clients and individuals went up by PLN 3.0 billion and PLN 1.8 billion respectively).   Consequently, mBank Group’s loan to deposit ratio reached 89.1%.
Impact of Q3 2018 performance on return on equity and return on assets:
  • Net ROE of 8.2% (compared with 8.3% in Q2 2018);
  • Net ROA of 0.78% (compared with 0.83% in Q2 2018).
The capital ratios reported by mBank Group rose slightly in Q3 2018 amid an increase in own funds (resulting from the inclusion of 50% of H1 2018 profit). As at the end of September 2018, mBank Group’s Total Capital Ratio stood at 20.2% and the Common Equity Tier 1 ratio at 17.3%.