10.05.2018

mBank Group posts a net profit of PLN 411 million in Q1 2018

In Q1 2018, mBank Group once again reported higher income, while maintaining cost discipline. The bank was growing organically through client acquisition and strengthening its deposit and credit base

In Q1 2018, the income of mBank Group rose by 20.9% to PLN 1,380.6 million. Pre-tax profit amounted to PLN 559.6 million, which represents an increase by 35.9% quarter on quarter. Net profit attributable to the shareholders of mBank reached PLN 411.0 million.

The main drivers of the Group’s financial results in Q1 2018 were as follows:

  • Increase in total income to PLN 1,380.6 million, mainly thanks to higher net fee and commission income, net trading income and a PLN 219.7 million profit from selling an organised part on mFinanse (financial agent and a member of mBank Group, offering its services across Poland).
  • Risk costs reduced to PLN 121.8 million, i.e. 57 basis points compared with 66 basis points in Q4 2017.
  • Continued organic growth and business expansion helped by an increase in the number of retail clients to 5,421.2 thousand (+78.9 thousand clients quarter on quarter) and corporate clients to 22,316 (+268 clients quarter on quarter).

  • Increase in total overhead costs (including amortisation/depreciation) to PLN 601.0 million compared with Q4 2017; in Q1 2018, mBank posted an annual contribution to the banks’ resolution scheme amounting to PLN 97.1 million.
  • Slight rise in tax on balance sheet items of the Group compared with Q4 2017 in the amount of PLN 98.5 million.

 

At the end of March 2018, net loans and advances to clients stood at PLN 85.7 billion, which represents a PLN 1.2 billion increase compared with the end of the previous quarter. Net of reverse repo/buy sell back transactions and the FX effect, loans and advances increased by 1.1%.

In Q1 2018, customer deposits rose by 3.1% compared with Q4 2017 and totalled PLN 94.3 billion with a slight drop in amounts due to corporate clients (-1.6% compared with the end of December 2017) and a small increase in amounts due to individuals (+3.6%).

The loan-to-deposit ratio of mBank Group stood at 90.8%. The Total Capital Ratio reached 20.9% and the Common Equity Tier 1 ratio accounted for 17.9% at the end of March 2018.

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