mBank (MBK) Q2 2025 earnings summary

Executive summary

• Achieved record net profit for H1 2025, reaching PLN 1.7 billion, up over 140% year-over-year, with core business profit before tax at PLN 3.66 billion and strong growth in both lending and deposits.

• Return on equity (ROE) ranged from 17.8% to 19.9%, and return on tangible equity (ROTE) reached up to 25.3%, supported by cost efficiency and low credit losses.

• Capital position was strengthened by retained earnings and a EUR 400 million Tier II bond issuance, supporting further growth.

• Legal risk related to FX mortgage loans continued to decline, with settlements exceeding 28,700 and court cases decreasing for the sixth consecutive quarter.

Financial highlights

• Total revenue for H1 2025 rose 7.1% year-over-year to PLN 6.23 billion, with all key revenue drivers contributing.

• Net interest income increased up to 15.4% year-over-year, and net fee and commission income grew up to 18.5% year-over-year.

• Net trading income surged over 61% year-over-year, while net other operating income declined due to a one-off gain in 2024.

• Operating costs rose up to 15% year-over-year, mainly due to higher contributions to the bank guarantee fund and increased personnel expenses.

• Net profit in Q2 2025 was PLN 959 million, up 36% quarter-over-quarter and 127% year-over-year.

Outlook and guidance

• Full-year revenues expected to exceed PLN 12 billion, surpassing 2024 levels.

• Cost-to-income ratio projected to stay below 35% for the full year.

• Loan growth anticipated to remain above market in both retail and corporate segments.

• 2025 expected to be the final year with material FX mortgage-related legal risk.

• Capital and MREL buffers to remain strong, supported by profit generation and Tier 2 issuance.