mBank (MBK) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered strong growth in both retail and corporate loan portfolios, with net profit reaching PLN 706 million and robust profitability, despite ongoing legal risk provisioning for FX loans.

• Revenues exceeded PLN 3 billion, with a cost-to-income ratio below 34% and ROE at 15.6%, while ROTE reached 19.2%.

• All three major rating agencies upgraded ratings, citing improved capital, reduced legal risk, and strong profitability.

• Legal risk costs for FX loans declined significantly, with settlements accelerating and provisions expected to peak in 2025.

• Customer base expanded, with retail customers at 5.78 million and corporate customers at 36,516.

Financial highlights

• Gross loans to customers grew 9.5% year-over-year to PLN 131.4 billion; customer deposits rose 9.6% to PLN 200.6 billion.

• Net interest income was PLN 2,439 million, up 4.2% year-over-year; net fee and commission income reached PLN 503 million.

• Net profit was PLN 706 million, up 169% year-over-year but down 28% from Q4 2024.

• Cost-to-income ratio at 33.9%, with total costs excluding compulsory contributions down 10.4% quarter-over-quarter.

• Cost of risk at 0.53%, with net impairment losses at PLN 165 million.

Outlook and guidance

• 2025 total revenues expected above PLN 11 billion, with ambition to outpace market loan growth despite anticipated interest rate cuts.

• Cost of risk guidance for 2025 remains at 70–80 basis points.

• Double-digit cost growth expected, driven by higher BFG contributions, wage increases, and new projects.

• 2025 expected to be the final year of significant Swiss franc legal provisions.

• Loan growth in both sectors anticipated to accelerate, supported by labor market, EU funds, and lower rates.