mBank (MBK) Q4 2024 earnings summary

Executive summary

• Achieved record net profit in 2024, driven by strong core business, improved asset quality, and highest-ever results, with robust growth across all strategic products and client segments.

• Returned to dynamic volume growth in mortgages, consumer, and corporate lending, with significant market share gains and record mortgage sales.

• Strengthened capital base via landmark AT1 issuance and fourth securitization, supporting future growth.

• Advanced CHF loan settlements, substantially reducing Swiss franc mortgage risk and portfolio share to 0.5%.

• Net profit attributable to shareholders in Q4 2024 was PLN 986.0 million, up from PLN 572.9 million in Q3 2024.

Financial highlights

• Total revenues rose 11% year-over-year to PLN 12 billion, a record high.

• Net interest income increased 8% year-over-year (10% adjusted for credit holidays) to PLN 9.6 billion; net interest margin improved to 4.35%.

• Net profit reached PLN 4.6 billion in 2024, up from PLN 2.2 billion in 2023 (+105%), despite PLN 4.3 billion in legal risk costs; core business net profit (excluding FX mortgages) was PLN 5.6 billion.

• Return on equity: 39.7% for core business, 14.8% for the group.

• Cost-income ratio improved to 28.2% from 28.5% in 2023, remaining below 30%.

• Cost of risk dropped to 49 bps from 93 bps in 2023; NPL ratio at 4.1%, coverage ratio at 71.4%.

Outlook and guidance

• 2025 revenue expected above PLN 11 billion, slightly below 2024, assuming interest rate cuts.

• Net interest income may decrease if rates fall, but net fees expected to rise with customer growth.

• Operating costs projected to increase at a low double-digit rate, mainly due to new initiatives, inflation, and higher BFG contributions.

• Cost of risk expected in the 70–80 bps range for 2025 and beyond.

• 2025 anticipated as the last year of material P&L burden from FX mortgage legal risk.