In This Article:
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Total Quarterly Revenue: Exceeded PLN3 billion for the first time.
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Return on Equity (ROE): Higher than 40% in the core bank.
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Loan Growth: 5% year-on-year, with mortgage loan sales exceeding PLN3.3 billion.
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Total Income Increase: 9% quarter-on-quarter.
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Net Interest Income (NII) Growth: 1.6% quarter-on-quarter, adjusted for credit vacations.
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Net Interest Margin: Slight decrease from 4.4% to 4.3%.
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Net Fee and Commission Income: Increased quarter-on-quarter.
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Total Costs Increase: 4.1% quarter-on-quarter.
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Cost-Income Ratio: Below 26% in Q3, expected to remain below 30% for 2024.
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Cost of Risk: 62 basis points in Q3.
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Net Profit: PLN573 million, translating to an ROE of 14.9%.
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Gross Loans to Customers: Increased by 2% quarter-on-quarter.
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Customer Deposits: Increased by 3.2% quarter-on-quarter.
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Tier 1 Capital Increase: 5.6% since the beginning of 2024.
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Capital Ratios: Tier 1 and TCR remain at comfortable levels above KNF requirements.
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Swiss Franc Legal Provision: Increased by PLN971 million.
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Swiss Franc Mortgage Settlements: 19,500 settlements concluded by end of September.
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New Mortgage Loan Sales: Exceeded EUR3.3 billion, a historic mark.
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Total Deposits: Increased by 3.2% quarter-on-quarter.
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Loan-to-Deposit Ratio: 64%.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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mBank SA (FRA:BRU) achieved record quarterly revenues exceeding PLN3 billion, marking a significant milestone.
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The Swiss franc settlement program is progressing well, with a decline in new and pending court cases.
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Loan growth is evident with a 5% year-on-year increase, and mortgage loan sales exceeded PLN3.3 billion.
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The bank's personal financial management functionalities have expanded, leading to nearly 1.9 million users.
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The successful launch of a PLN500 million senior preferred green bond was almost 6 times oversubscribed, indicating strong investor confidence.
Negative Points
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The cost of risk is expected to increase in Q4 due to seasonality of corporate write-offs.
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Legal provisions related to Swiss franc mortgages increased by PLN971 million, remaining a significant financial burden.
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The net interest margin slightly decreased from 4.4% to 4.3%, indicating pressure on profitability.
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Deposit costs increased, particularly in the corporate sector, impacting the net interest margin.
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The bank anticipates a slight decrease in net interest income in 2025 due to expected interest rate cuts.
Q & A Highlights
Q: Will mBank decrease interest on deposits if the central bank stops paying interest on mandatory reserves? A: Pascal Ruhland, CFO, explained that while a change in mandatory reserve interest rates would impact the banking sector's profitability, it would not directly translate to deposit pricing changes. Other factors would also be considered.