mBank (MBK) investor relations material

Executive summary

• Achieved record gross profit in Q1 2026, with net profit at PLN 953 million, driven by revenue growth, efficiency, and lower risk costs despite higher tax burden and challenging market conditions.

• Credit portfolio expanded by 10.8% YoY to PLN 146 billion, with strong mortgage and corporate loan growth; deposit base surged 18.2% YoY to PLN 237 billion.

• Maintained a robust capital base, with Tier 1 capital ratio at 14.1%, well above regulatory requirements.

• Market share gains in retail and corporate segments, with retail loans and deposits, as well as corporate deposits, all increasing.

• Recognized externally with S&P outlook upgrade to positive, reaffirmed ratings from S&P and Fitch, and awards for innovation, ESG, and digital transformation.

Financial highlights

• Total income reached PLN 3.1 billion, up 2.1% YoY, with net profit of PLN 953 million, up 35.1% YoY but down 8.5% QoQ.

• Net interest income declined by 3.2% YoY due to lower rates, but net fee and commission income rose by almost 15% YoY; trading income also increased.

• Normalized cost-to-income ratio at 30.8%, with reported ratio at 37.9% due to regulatory contributions.

• Cost of risk dropped to 30 basis points, with impairment losses down 60% QoQ and significant provision releases in the corporate segment.

• Return on tangible equity improved to 20.5%; net ROE at 17.5%.

Outlook and guidance

• Total revenues for 2026 expected to remain broadly stable versus 2025, with margin pressure offset by balance sheet growth and rising net fees.

• Cost-to-income ratio projected to stay below 35% due to disciplined cost management and selective investment in growth and transformation.

• Legal risk costs from CHF loans anticipated to decline further, with no significant burden expected.

• Dividend payout targeted at 30% of 2026 net profit.

• Business volumes forecasted to outpace market growth, focusing on mortgages and strategic industry financing.