Focus on clients, development of our platform and application, continued improvement of operational efficiency, and people making up our organisation are the pillars of the new strategy of mBank Group. For the first time ever the corporate social responsibility strategy is an integral part of the document. 2023 goals: return on equity (ROE) at about 10.5%, cost/income ratio down to about 40.0%, and net interest margin up to about 3.0%.
mBank strategy for 2020-2023 is our response to the changing market environment and upcoming trends, including continued technological advancement, evolving client expectations, and environmental protection challenges.
The bank will grow organically, driven by acquisition of new clients, mostly young people and businesses. At the same time, mBank will strengthen its position in the group of 30-45-year-olds, helped by mortgage and savings products. The focus will be placed on acquisition of clients from medium-sized towns and professionals rendering services to other businesses. Last but not least, mBank will join forces with parents to educate children and help them make their first steps into the world of finance with the use of its product range and educational campaigns organised by mFoundation.
The mobile app will become the key sales channel and the main point of contact with retail clients. The bank will further develop its platform, among others, by adding services of partners from outside the world of finance to its product mix. Effective use of modern technology will remain mBank’s competitive advantage.
Corporate banking will continue to stand out for its customised approach to corporate clients, professionalism, and industry expertise on board. We will also focus on promoting digital self-service among corporate clients.
In line with its CSR strategy mBank wants to educate people, protect the climate and environment, and improve welfare. We will be guided by the Sustainable Development Goals (SDGs) set by the UN from which we chose the goals that are crucial for the bank and divided them into three areas.
mBank and education:
- We support the development of maths education and offer equal educational opportunities.
- We teach people how to safely use digital banking.
mBank and the environment:
- We reduce our indirect impact on the environment, among others, through our credit policy on sectors relevant to EU climate policy.
- We also limit our direct impact, among others, by measuring and reducing our carbon footprint, cutting electricity consumption, and economizing on water, paper and stationery.
mBank and welfare:
- We support organisations that look after social welfare.
- Our communication with clients is honest, clear and transparent.
- We act ethically.
It is mBank’s ambition to be in the top three in terms of corporate social responsibility in the banking sector.
Successful implementation of the strategy will be reflected in key financial ratios in 2023:
- Net interest margin (NIM): up to ~3.0%
- Cost/income (C/I) ratio: down to ~40.0%
- Net return on equity (net ROE): up to ~10.5%
- Loans/deposits ratio: 92.0-94.0% in every year covered by the strategy.
- Capital ratios: minimum 1.5 p.p. above KNF requirements at the end of every year.
Compound annual growth rate (CAGR) in 2019-2023 by categories:
- Loans: ~6.0%
- Deposits: ~6.0%
- Total income: ~8.0%
- Total costs: ~5.0%
The bank aims at paying 50% of its net profit in dividends.
For more details about mBank’s new strategy, see the presentation below.
The above assumptions and strategic goals are not forecasts or estimates of results, including financial results, but only information about the bank’s plans and potential growth directions in 2020-2023.
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