Slides
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Results of mBank Group Q1 2025 Presentation for Investors and Analysts, 30.04.2025 Positive trends continued into new year
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2 Key highlights and business development in Q1 2025 Overview of the financial performance after Q1 2025 Update on Poland’s macroeconomic situation and outlook
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3 Key highlights of Q1 2025 in mBank Group Investor Presentation | Q1 2025 Accelerating growth of loan portfolio in both corporate and retail segment Development of core gross loans (PLN billion, excl. reverse repo and FX ML) 03/24 03/25 114.9 125.3 +9.0% Development of total income (PLN million) Total revenues kept above the quarterly threshold of PLN 3 billion, driven by still strong core income Q1/24 Q1/25 2,922 3,030 +3.7% Best-in-class operating efficiency despite higher annual contributions to the Bank Guarantee Fund Normalized cost/Income ratio (with linear Resolution Fund) Q1/24 Q1/25 29.1%26.6% +2.5pp
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4 Key highlights of Q1 2025 in mBank Group Investor Presentation | Q1 2025 Costs of legal risk related to FX loans (PLN million) Q1/24 Q1/25 1,371 662 -52% Return on tangible equity (ROTE for mBank Group) Q1/24 Q1/25 8.4% 19.2% +10.8pp Tier 1 capital ratio (consolidated level) 03/24 03/25 14.3% 14.2% -0.02pp Declining legal provisions for FX mortgage loans amid downward trends in new and pending lawsuits High reported net result at the level of PLN 706 million accompanied by the outstanding profitability Significant surplus over minimum capital requirements ensuring safe space for business expansion
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5 Top-3 credit rating agencies upgraded assessment of mBank Investor Presentation | Q1 2025 S&P Global Ratings Moody's Ratings Fitch Ratings Date of rating action: 27.02.2025 Date of rating action: 10.04.2025 Date of rating action: 22.04.2025 SP debt rating BBB BBB+ SNP debt rating BB+ BBB- SP debt rating BBB- BBB+ SNP debt rating BB+ BBB “The upgrade reflects our view of mBank's improved earnings stability and growing capital cushion. As a result, our assessment of the bank's capital and earnings has improved, which led us to raise its stand-alone credit profile to 'bbb’.” “The upgrade of mBank's BCA to baa3 from ba1 reflects the significant improvement in the bank's solvency position supported by its strong earnings generation and reduced legal costs, which we expect to decline further in 2025 due to mBank’s substantial reduction in its exposure to Swiss-franc mortgages.” “The upgrades of the VR and IDRs are driven by a substantial and durable reduction in legal risks associated with legacy FX mortgage loans, mainly in Swiss francs, which no longer adversely impact our assessment of the bank's credit profile. We believe the bank's execution on its strategy is no longer hindered as its internal capital generation has markedly improved.” LT Issuer Credit Rating LT Deposit Rating LT Issuer Credit Rating BBB BBB+ Stand-alone credit profile (SACP) bbb- bbb Baa1 A3 Baseline Credit Assessment (BCA) ba1 baa3 BBB- BBB Viability rating (VR) bbb- bbb LT Issuer Rating of mBank Hipoteczny Baa2 Baa1
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6 Key highlights and business development in Q1 2025 Overview of the financial performance after Q1 2025 Update on Poland’s macroeconomic situation and outlook
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7 Summary of financial results: Profit and Loss Account 1 Sum of ‘Impairment on financial assets not measured at fair value through profit or loss’ and ‘Gains or losses on non -trading financial assets mandatorily at fair value through profit or loss’ related to loans PLN million Q1 2024 Q4 2024 Q1 2025 ∆ QoQ ∆ YoY Net interest income 2,340.1 2,512.9 2,438.7 -3.0% +4.2% Net fee and commission income 484.1 497.3 503.1 +1.2% +3.9% Net trading and other income 97.9 34.3 88.1 +157.1% -10.0% Total income 2,922.1 3,044.5 3,029.9 -0.5% +3.7% Total costs (excl. compulsory contributions) -741.1 -905.2 -811.5 -10.4% +9.5% Contributions to the BFG -147.8 0.0 -214.9 - +45.4% Loan loss provisions and fair value change1 -48.1 -175.0 -165.2 -5.6% +243.8% Costs of legal risk related to FX loans -1,370.6 -932.2 -661.8 -29.0% -51.7% Operating result 614.6 1,032.1 1,176.6 +14.0% +91.4% Taxes on the Group balance sheet items -181.9 -194.3 -187.1 -3.7% +2.9% Profit or loss before income tax 432.7 837.7 989.5 +18.1% +128.7% Net profit or loss 262.5 986.0 705.7 -28.4% +168.8% Net interest margin (w/o “credit holidays”) 4.37% 4.27% 4.23% -0.04pp -0.14pp Cost/Income ratio 30.4% 29.7% 33.9% +4.2pp +3.5pp Cost of risk 0.17% 0.57% 0.53% -0.04pp +0.36pp Return on equity (ROE) 7.4% 23.8% 15.6% -8.2pp +8.2pp Return on tangible equity (ROTE) 8.4% 27.8% 19.2% -8.6pp +10.8pp Investor Presentation | Q1 2025
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8 Summary of financial results: Balance Sheet 1 Excluding reverse repo or buy/sell back transactions; 2 Excluding repo or sell/buy back transactions PLN million Q1 2024 Q4 2024 Q1 2025 ∆ QoQ ∆ YoY Total assets 224,157 245,957 246,068 0.0% +9.8% Gross loans to customers 120,001 124,985 131,434 +5.2% +9.5% Individual client loans 66,634 70,589 71,546 +1.4% +7.4% Corporate client loans 1 51,715 53,222 55,399 +4.1% +7.1% Customer deposits 183,067 200,809 200,617 -0.1% +9.6% Individual client deposits 129,268 142,248 144,402 +1.5% +11.7% Corporate client deposits 2 51,783 56,790 54,159 -4.6% +4.6% Total equity 14,069 17,767 18,549 +4.4% +31.8% Loan-to-deposit ratio 63.5% 60.5% 63.7% +3.2pp +0.2pp NPL ratio 4.1% 4.1% 3.8% -0.3pp -0.3pp Coverage ratio (including stage 1 & 2) 76.6% 71.4% 73.5% +2.1pp -3.1pp Tier 1 Capital Ratio 14.3% 15.7% 14.2% -1.5pp -0.1pp Total Capital Ratio 16.2% 17.0% 15.4% -1.6pp -0.8pp 3 Capital ratios recalculated taking into account the retrospective inclusion of the net profit in own funds (after the Ordinar y General Meeting) 3 3 Investor Presentation | Q1 2025
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9 Quarterly results of mBank Group – New lending business Good level of mortgage loan sales, accompanied by rising consumer and corporate credit Investor Presentation | Q1 2025 Sales of mortgage loans PLN million Sales of non-mortgage loans Sales of corporate loans PLN million PLN million mBank PL mBank CZSK mBank PL mBank CZSK by segment: K1 K2 K3 454 670 717 2,296 Q1/24 2,248 Q4/24 2,642 Q1/25 2,750 2,918 3,359 +22% +15% 31 2,321 Q1/24 118 2,509 Q4/24 171 2,318 Q1/25 2,352 2,627 2,489 +6% -5% 1,986 6,909 646 Q1/24 3,233 7,083 824 Q4/24 2,979 8,764 1,030 Q1/25 9,541 11,141 12,772 +34% +15% including: new agreements, increases in volume, and renewal of existing loans 1,292 Volume of loans granted under government subsidy program “2% Safe Mortgage”
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PLN mortgage loans 03/24 03/25 7.7% 8.3% 10 Quarterly results of mBank Group – Loans to customers Accelerating growth of loan portfolio in both corporate and retail business segment Investor Presentation | Q1 2025 Development of mBank Group’s gross loans PLN million Market shares in loans in Poland -1% +3% ∆ YoY +10% +1% Mortgage loans to individuals Other retail loans Loans to corporate clients Loans to public sector Gross loans to retail customers, excluding non-core portfolio+2% households enterprises total loans w/o FX total loans 03/24 03/25 7.3% 7.7% +0.4pp 03/24 03/25 8.0% 8.4% +0.4pp non-mortgage loans 03/24 03/25 6.8% 6.8% ∆ QoQ 168 53,199 23,402 43,232 03/24 145 54,251 24,611 45,978 12/24 143 59,745 25,294 46,252 03/25 120,001 124,985 131,434 +10% +5% 63,020 68,204 69,758 -15% +8% +12% +7% +11%
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total deposits 03/24 03/25 8.3% 8.4% 11 Deposit base fuelled by inflows to retail accounts, seasonal decline of corporate funds Investor Presentation | Q1 2025 Development of mBank Group’s deposits PLN million Market shares in deposits in Poland +4% 0% ∆ YoY -4% +2% Retail current and saving accounts Retail term deposits Deposits from corporate clients Deposits from public sector Investment funds distributed to customers via mBank's solutions households enterprises current deposits current deposits 03/24 03/25 9.2% 9.6% +0.3pp 03/24 03/25 13.5% 13.4% -0.1pp total deposits 03/24 03/25 10.6% 10.4% ∆ QoQ 938 52,861 24,421 104,847 03/24 841 57,720 24,753 117,495 12/24 875 55,341 24,677 119,725 03/25 183,067 200,809 200,617 +10% 0% 10,476 12,814 13,305 -7% +1% +5% +14% Quarterly results of mBank Group – Customer deposits of which PLN 3.15 billion managed by mTFI
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Key factors impacting the capital position Tier 1 capital ratio AT1 Tier 2 12 Quarterly results of mBank Group – Capital position Safe capital situation with significant surplus over minimum regulatory requirements Investor Presentation | Q1 2025 Development of mBank Group’s capital ratios Development of mBank Group’s total risk exposure amount PLN million Development of mBank Group’s MREL (TREA) ratio 1 Capital and MREL ratios recalculated taking into account the retrospective inclusion of the net profit in own funds (after the Ordinary General Meeti ng) 91,266 03/24 93,678 06/24 96,942 09/24 102,430 12/24 112,372 03/25 ∆ YoY +23.1% ∆ QoQ +9.7% Own funds17,448 16,090 17,249 16,000 15,210 13,570 14,800 13,010 15,693 14,193 Tier 1 capital 2.33% 14.25% 03/24 1.75% 14.49% 06/24 1.55% 14.64% 09/24 1.33%1.46% 14.24% 12/24 1.11%1.33% 12.90% 03/25 2.00% 9.08% minimum requirement 16.22% 16.24% 16.19% 17.03% 15.35% 11.08% +4.27 MREL requirement CBR calculated on TREA (w/o mBH) as of 03/25 03/24 06/24 09/24 12/24 03/25 3.15% 15.36% minimum requirement 23.63% 23.58% 24.05% 24.73% 22.40% 18.51% +3.89 1 1 ▪ After the approval of the annual financial statements for 2024 by the General Meeting of Shareholders, the retrospective inclusion of the net result for Q4 2024 in the amount of PLN 986 million in own funds as of 31.12.2024 was applied. ▪ As a result of the implementation of CRR 3 and other regulatory changes in Q1 2025, risk-weighted assets (RWA) increased by ca. PLN 4 billion (+4%). The majority of impact was related to operational risk. 15.71% 14.24% CET 1 ratioCET 1 ratio
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Quarterly results of mBank Group – Total income Total revenues maintained above PLN 3 billion, thanks to still strong core income Net interest income Net trading income Net fee and commission income Net other operating income Dividend income, gains less losses from financial assets and liabilities ∆ QoQ ∆ YoY -3.0% +4.2% +1.2% +3.9% 13 Impact of extension of “credit holidays” on net interest income: Q2/24: cost of PLN 256.8 M (negative), Q3/24: partial reversal of PLN 110.1 M (positive), Q4/24: further reversal of PLN 8.2 M (positive) 2,340.1 Q1/24 198.633.72.2 491.2 2,164.7 Q2/24 -2.3 44.337.3 499.2 Q3/24 -25.8 45.414.7 2,571.4 2,512.9 Q4/24 20.0 497.353.324.6 2,922.1 484.1 3,149.9 3,044.5 Q1/25 3,029.9 2,890.4 503.1 20.8 71.9 -4.5 2,438.7 +3.7% -0.5% other operating income in Q2/24 included a refund of collection costs related to a loan insured by KUKE at PLN 164.0 M mBank Group Core business (excl. FX ML) 4.37% 4.43% Q1/24 4.44% 4.50% Q2/24 4.31% 4.35% Q3/24 4.27% 4.31% Q4/24 4.23% 4.29% Q1/25 Note: Defined as mBank Group excluding FX Mortgage Loans segment mBank Group Core business 6.56% 2.43% Q1/24 6.59% 2.34% Q2/24 6.54% 2.42% Q3/24 6.37% 2.31% Q4/24 Q1/25 6.17% 2.20% asset yield funding costAsset yield Funding costs Investor Presentation | Q1 2025 Development of mBank Group’s total income PLN million Development of net interest margin quarterly data, excluding impact of “credit holidays” Components of balance sheet profitability quarterly data for mBank Group
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+9.5% -10.4% excluding impact of "credit holidays“ and a one -off gain (refund by KUKE in Q2/24) reported normalizedreported normalized (with linear BFG) 14 Quarterly results of mBank Group – Total costs and efficiency Operating expenses affected by BFG contributions, cost/income ratio kept at excellent level Personnel costs Amortization Material costs Other costs -3.4% +13.2% -18.3% +6.3% -15.0% +5.2% 7,383 03/24 7,495 06/24 7,532 09/24 7,569 12/24 7,627 03/25 +244 +57 30.4% 26.6% Q1/24 27.0% 27.4% Q2/24 25.8% 28.0% Q3/24 29.7% 31.0% Q4/24 33.9% 29.1% Q1/25 Normalized C/I ratio for 2024 28.3% 138.9 13.9 237.4 392.1 Q2/24 142.5 16.5 259.8 394.3 Q3/24 168.8 21.4 265.8 449.2 Q4/24 136.5 16.8 204.4 383.4 Q1/24 888.9 781.1 813.1 905.2 Q1/25 147.8 -1.0 1,026.4 433.9 217.2 16.8 143.6 191.5 23.4 +15.5% +13.4% increase driven by IT, security, operations and retail area excluding impact of “credit holidays” and a refund by KUKE (in Q2/24) Contributions to the Bank Guarantee Fund (in 2024 to the Resolution Fund only, in 2025 also to Deposit Guarantee Scheme) Investor Presentation | Q1 2025 Development of mBank Group’s operating costs PLN million Cost/Income ratio of mBank Group ∆ QoQ ∆ YoY +X.X% excluding contributions Employment of mBank Group (in FTEs)
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17 58 62 57 53 17 37 46 49 53 15 Quarterly results of mBank Group – Credit losses and cost of risk Credit provisioning oscillated at similar level, translating into stable risk costs 43 51 59 64 55 -16 65 67 48 50 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 quarterly YtDmBank Group’s cost of risk: quarterly YtDRetail Banking: at amortized cost at fair value Retail loan portfolio Corporate loan portfolioCorporate & Investment Banking: at amortized cost at fair value 0.8 87.2 0.5 82.8 Q2/24 -0.8 94.1 0.5 97.3 Q3/24 -1.8 67.2 0.2 -0.9 Q4/24 -19.9 1.0 67.9 Q1/24 48.1 171.3 191.1 175.0 Q1/25 165.2 94.1 1.1 70.4 -0.5 109.4 +244% -6% Investor Presentation | Q1 2025 Net impairment losses and fair value change on loans mBank Group’s cost of risk, by segment PLN million basis points (bps)
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16 Quarterly results of mBank Group – Loan portfolio quality Good asset quality confirmed by risk metrics, NPL ratio supported by sale of impaired loans provisions for stage 3 & POCI including provisions for stage 1 & 2 129 4,842 03/24 130 5,216 06/24 101 5,093 09/24 89 5,004 12/24 84 4,929 03/25 4,971 5,346 5,194 5,093 5,013 +0.9% -1.6% at amortized cost at fair value through profit and loss 55.3% 03/24 54.2% 06/24 53.8% 09/24 51.1% 12/24 52.6% 03/25 76.6% 72.2% 72.2% 71.4% 73.5% Note: Risk indicators presented for credit portfolio measured both at amortized cost and at fair value through profit or loss. NPL ratio according to EBA definition has remained considerably below 5% 4.1% 03/24 4.3% 06/24 4.1% 09/24 4.1% 12/24 3.8% 03/25 1.09% 03/24 1.12% 06/24 1.10% 09/24 1.10% 12/24 1.07% 03/25 granted to private individuals 4.4% 4.0% 03/24 4.9% 4.1% 06/24 4.5% 3.9% 09/24 4.3% 3.9% 12/24 4.4% 3.6% 03/25 Corporate portfolio Retail portfolio Corporate portfolio Retail portfolio Investor Presentation | Q1 2025 mBank Group’s impaired loans portfolio mBank Group’s NPL ratio PLN million mBank Group’s coverage ratio mBank Group’s NPL ratio, by segment NPL ratio of mortgage loan portfolio in PLN
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17 Quarterly results of mBank Group – Legal risk of CHF portfolio Further progress with settlements, declining number of new and pending court cases Investor Presentation | Q1 2025 Settlements concluded by mBank New CHF-related court cases CHF loan contracts in court with CHF borrowers, cumulative number mBank launched the settlement program for borrowers on 26.09.2022. number of contracts entering the court proceedings, by quarter active contracts repaid contracts number of pending cases Classification to active or repaid status as of the reporting date. active contracts repaid contracts 03/24 12/24 03/25 15,168 22,902 26,079 +10,911 +3,177 734 442 271 438 495 533 435 500 1,484 Q1/24 1,005 Q2/24 Q3/24 Q4/24 Q1/25 1,922 1,500 1,267 877 771 -60% -12% 3,916 17,856 03/24 3,449 12,547 12/24 2,877 9,914 03/25 21,772 15,996 12,791 -41% -20% Repaid contracts as a % of total 42% 50% 65%33%23% 22%18% 22%
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18 Quarterly results of mBank Group – Legal risk of CHF portfolio Effective management of CHF portfolio allowed to further reduce balance sheet risks Investor Presentation | Q1 2025 Value of CHF mortgage loans Decomposition of CHF loan contracts at mBank granted to natural persons, PLN million, net number of contracts, as of 31.03.2025 2015 9,064 2021 6,142 2022 1,853 2023 2024 03/25 19,177 12,849 11,894 8,187 4,468 3,383 1,853 666 portfolio deductions due to legal risks 217 closed or converted into PLN total number of disbursed loans 36,192 repaid loans 10,458 final verdict 26,079 settlements active contracts 85,520 12,791 -85.0% of which: 8% in court of which: 78% in court excluding verdicts followed by settlements Outstanding legal provisions for FX mortgage loans total value, PLN million 116% 147% 159% Coverage of CHF portfolio 2,609 5,638 03/24 2,848 4,116 12/24 2,258 3,477 03/25 8,247 6,964 5,735 Relation of legal provisions for CHF loan contracts to the active CHF loan portfolio (before deductions). Share of CHF mortgages in total loan portfolio declined from 23.6% in 2015 to 0.2% at the end of Q1/25. PLN 17.2 billion With PLN 662 million booked in Q1/25, cumulative value of all FX-related legal risk provisions created by mBank since Q1/18 amounted to deductions from outstanding loans included in the liabilities ▶ Total provision amount as of 03/25 includes PLN 5,391 million for CHF and PLN 343 million for other currencies.
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19 Quarterly results of mBank Group – Profitability of the core business Excellent performance of core operations evidences strength of mBank’s franchise Investor Presentation | Q1 2025 Summary of financial results for mBank’s core activity and run-off portfolio in Q1/25 Profitability of mBank Group PLN million 2 Sum of ‘Impairment on financial assets not measured at fair value through profit or loss’ and ‘Gains or losses on non -trading financial assets mandatorily at fair value through profit or loss’ related to loans 1 Equivalent of ”FX Mortgage Loans segment” in the financial statement The capital allocated to the non-core unit amounted to PLN 636 M as of 31.03.2025. PLN million Core Business Non-core1 mBank Group Net interest income 2,448.7 -10.0 2,438.7 Net fee, trading and other income 605.1 -13.9 591.2 Total income 3,053.8 -23.9 3,029.9 Total costs -1,002.6 -23.8 -1,026.4 Loan loss provisions and fair value change2 -213.1 47.9 -165.2 Costs of legal risk related to FX loans 0.0 -661.8 -661.8 Operating profit 1,838.1 -661.5 1,176.6 Taxes on the Group balance sheet items -184.5 -2.6 -187.1 Profit or loss before income tax 1,653.6 -664.1 989.5 Net profit or loss 1,208.2 -502.5 705.7 Total assets 243,838 2,230 246,068 Net interest margin 4.29% 4.23% Cost/Income ratio 32.8% 33.9% Cost of risk 0.69% 0.53% Return on equity (ROE) 28.1% 15.6% Profitability of Core Business PLN million Q1/24 Q4/24 Q1/25 262.5 986.0 705.7 19.2% ROTE8.4% 27.8% Q1/24 Q4/24 Q1/25 1,388.5 1,358.7 1,208.2 28.1% ROE41.1% 36.1% 15.6% ROE7.4% 23.8%
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Key take-aways after Q1 2025 We delivered: 20Investor Presentation | Q1 2025 positive trends in CHF litigations and further good progress with settlements support expectations for lower legal provisions excellent operating efficiency backed by strong revenue generation and proven cost discipline despite regulatory contributions high profitability of the business as outstanding performance of core operations compensates continued provisioning against legal risk rising new sales of retail loans and acceleration of corporate financing translate into dynamic growth of credit portfolio
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21 Key highlights and business development in Q1 2025 Overview of the financial performance after Q1 2025 Update on Poland’s macroeconomic situation and outlook
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22 Macroeconomic situation in Poland NBP is about to cut rates in 2025 as inflation starts declining. Soft indicators have flatlined of late, though the current levels are similar to what was seen between 2020 and 2022. Overall, consumption is anticipated to slow down slightly, albeit higher savings should prevent a deeper decline. The labour market in Poland proved to be resilient in the past weaker years. Given structural factors, the unemployment ratewill remain low in the coming quarters buoyed by the nascent economic recovery. GDP growth is seen to keep rising supported initially by private consumption. Investment is likely to accelerate thereafter as EU-led projects should kick off. GDP growth in 2025 is expected to reach 3.8%. Inflation is to stay a bit elevated in Q2/25 and then it should fall substantially from Q3/25 onwards. Core inflation should follow this trend as well. As a result, the MPC is likely to cut rates, which will reach 4.75% at the year-end. -50 -40 -30 -20 -10 0 10 20 Jan.16 Jan.17 Jan.18 Jan.19 Jan.20 Jan.21 Jan.22 Jan.23 Jan.24 Jan.25 Consumer Confidence Self-assessed household financial situation 0% 2% 4% 6% 8% 10% 12% Jan.16 Jan.17 Jan.18 Jan.19 Jan.20 Jan.21 Jan.22 Jan.23 Jan.24 Jan.25 Unemployment rate Source: GUS Source: GUS -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 2019 2020 2021 2022 2023 2024 2025 2026 Repo rate CPI inflation Core inflation Repo rate forecast CPI forecast Core CPI forecast 5.3 5.2 4.4 3.6 2.7 -7.7 -1.1 -1.9 0.3 12.2 6.7 8.7 8.9 6.3 4.1 2.5 -0.5-0.5 0.6 1.2 2.2 3.2 2.8 3.4 3.2 3.3 4.2 4.4 -8 -6 -4 -2 0 2 4 6 8 10 12 14 Q1/19 Q3/19 Q1/20 Q3/20 Q1/21 Q3/21 Q1/22 Q3/22 Q1/23 Q3/23 Q1/24 Q3/24 Q1/25 Q3/25 Investment Net exports Consumption Inventories GDP YoY (%) Source: GUS Source: NBP, GUSmBank’s forecast mBank’s forecast Investor Presentation | Q1 2025 Consumption growth is likely to stay stable Unemployment rate (still) very low GDP path and forecast for Poland (% YoY) Inflation set to decline over 2025
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3,60 3,80 4,00 4,20 4,40 4,60 4,80 5,00 5,20 Jan.19 Jul.19 Jan.20 Jul.20 Jan.21 Jul.21 Jan.22 Jul.22 Jan.23 Jul.23 Jan.24 Jul.24 Jan.25 EUR/PLN CHF/PLN USD/PLN 5.20 5.00 4.80 4.60 4.40 4.20 4.00 3.80 3.60 23 Macroeconomic situation in Poland Credit growth is recovering. Bond yields decline, zloty depreciates. Deposit growth in the corporate sector started to accelerate. The same move is seen in the case of credit growth. The nascent economic recovery should drive up demand for loans going forward. The strong labour market and expansionary fiscal policy support deposit accumulation. Credit growth is rising, and it is expected to continue this move amidst improving economic activity. Bond yields on domestic debt have declined sharply. This was mainly due to a change in the rhetoric of Polish central bank regarding interest rates. Credit risk measures remain quite stable. Polish currency has lost some ground against EUR as the NBP sets the stage for impending rate cuts. On the other hand, PLN has strengthened against USD as the latter is hammered by Trump’s trade policy. -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% Jan.13 Jan.14 Jan.15 Jan.16 Jan.17 Jan.18 Jan.19 Jan.20 Jan.21 Jan.22 Jan.23 Jan.24 Jan.25 Household deposits Household loans Mortgage loans 0 100 200 300 400 500 600 700 800 900 Jan.19 Jul.19 Jan.20 Jul.20 Jan.21 Jul.21 Jan.22 Jul.22 Jan.23 Jul.23 Jan.24 Jul.24 Jan.25 2Y 5Y 10Y -10% -5% 0% 5% 10% 15% 20% 25% 30% Jan.13 Jan.14 Jan.15 Jan.16 Jan.17 Jan.18 Jan.19 Jan.20 Jan.21 Jan.22 Jan.23 Jan.24 Jan.25 Corporate deposits Corporate loans Corporate investment loans Source: NBP Source: NBP Source: Bloomberg Source: Bloomberg Investor Presentation | Q1 2025 Corporate loans and deposits (YoY, FX-adjusted) Household loans and deposits (YoY, FX-adjusted) Government bond yields slumped recently (bps) PLN weakened against EUR as rate cut odds jump
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Key economic indicators for Poland 24 Macroeconomic forecasts and outlook for Poland Operating environment for banks has continued being challenging and uncertain Source: Statistics Poland, National Bank of Poland, mBank’s estimates as of 24.04.2025. 2022 2023 2024 2025F 2026F GDP growth (YoY) 5.3% 0.2% 2.9% 3.8% 3.5% Domestic demand (YoY) 4.8% -3.0% 4.2% 4.2% 3.8% Private consumption (YoY) 5.0% -0.3% 3.1% 3.0% 3.1% Investment (YoY) 1.7% 12.7% -2.2% 9.8% 6.5% Inflation (eop) 16.6% 6.2% 4.7% 3.1% 2.7% MPC rate (eop) 6.75% 5.75% 5.75% 4.75% 4.00% CHF/PLN (eop) 4.73 4.68 4.55 4.58 4.66 EUR/PLN (eop) 4.69 4.34 4.28 4.28 4.40 2022 2023 2024 2025F 2026F Corporate loans 9.6% -0.7% 4.9% 4.7% 5.4% Household loans -3.8% -1.3% 2.9% 3.1% 4.4% Mortgage loans -3.2% -3.6% 2.9% 1.2% 4.0% Mortgage loans in PLN -1.8% 1.8% 7.7% 4.3% 7.0% Non-mortgage loans -5.1% 3.0% 2.8% 6.6% 5.0% Corporate deposits 11.6% 8.7% 3.9% 8.3% 6.2% Household deposits 3.3% 11.3% 9.9% 8.0% 7.3% ▪ GDP growth is expected to reach 3.8%, which should be a decent number without reigniting inflationary risks. ▪ Polish households have rebuilt their savings, which should support consumption growth despite weakish consumer sentiment. ▪ After 2024, when investment was dormant, it is going to change in 2025 on the back of an array of projects financed by EU funds. It should be a major driver of growth this year. ▪ Inflation has become more benign lately. This trend is likely to unfold in 2025, when quite a steady downward path is forecast. An expected slowdown in wage growth ought to play a role. ▪ Amid easing inflationary trends, and with weakish external demand, NBP is anticipated to decrease interest rates soon. A downward risk from possible tariffs might also be taken into account. ▪ Higher investment dynamics, and lower interest rates, should support loan growth in 2025. On the flip side, a significant pile of own funds among companies and high house prices could limit the pace. Investor Presentation | Q1 2025 Main factors driving the performance in 2025 Polish banking sector – monetary aggregates YoY
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Outlook for mBank Group for 2025 We expect: 25Investor Presentation | Q1 2025 legal risk costs related to FX mortgages to materially burden the financial results for the last time in 2025 both corporate loans and retail credit portfolio to rise above the market capital base to increase further thanks to planned Tier 2 issuance and strong profit generation total revenues to be above PLN 11 billion, but slightly lower than in 2024 1 1 assuming interest rate scenario presented on the slide 2 4
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Appendix 26
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Quarterly results (PLN thou.) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Net interest income 2,340,082 2,164,656 2 571,355 2,512,930 2,438,716 Net fee and commission income 484,127 491,227 499,244 497,286 503,086 Dividend income 2,995 6,194 4,944 146 468 Net trading income 53,281 33,728 44,273 45,396 71,861 Gains less losses from financial assets1 21,638 -3,961 32,338 14,582 20,327 Net other operating income 19,991 198,599 -2,290 -25,843 -4,527 Total income 2,922,114 2,890,443 3 149,864 3,044,497 3,029,931 Total operating costs -888,879 -781,147 -813,100 -905,214 -1,026,389 Overhead costs -752,429 -642,284 -670,611 -736,386 -882,836 Amortisation -136,450 -138,863 -142,489 -168,828 -143,553 Loan loss provisions and fair value change2 -48,055 -171,311 -191,125 -175,017 -165,190 Costs of legal risk related to FX loans -1,370,563 -1,033,481 -970,708 -932,212 -661,769 Operating result 614,617 904,504 1 174,931 1,032,054 1,176,583 Taxes on the Group balance sheet items -181,911 -185,217 -190,925 -194,328 -187,123 Profit or loss before income tax 432,706 719,287 984,006 837,726 989,460 Net result attributable to owners of mBank 262,523 421,856 572,864 986,002 705,671 27 Selected Financial Data Consolidated Profit and Loss Account – quarterly 2 Sum of ‘Impairment on financial assets not measured at fair value through profit or loss’ and ‘Gains or losses on non -trading financial assets mandatorily at fair value through profit or loss’ related to loans 1 Including a part of ‘Gains or losses on non-trading financial assets mandatorily at fair value through profit or loss’ related to equity instruments and debt securities (without related to loans and advances) Investor Presentation | Q1 2025
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Assets (PLN thou.) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Cash and balances with Central Bank 24,535,807 21,707,034 25,893,176 36,680,926 16,722,455 Loans and advances to banks 12,054,848 11,577,948 17,503,613 9,738,457 18,791,826 Trading securities 1,316,973 976,576 900,963 1,187,749 2,097,484 Derivative financial instruments 693,045 619,261 664,665 609,993 634,780 Loans and advances to customers 116,296,350 121,202,225 123,831,793 121,418,598 127,815,651 Investment securities 62,230,638 66,760,510 62,770,296 68,993,423 72,147,270 Intangible assets 1,712,600 1,763,204 1,817,337 1,956,693 2,005,116 Tangible fixed assets 1,493,096 1,461,714 1,412,282 1,461,811 1,427,484 Other assets 3,823,662 4,227,119 3,780,221 3,909,713 4,425,901 Total assets 224,157,019 230,295,591 238,574,346 245,957,363 246,067,967 Liabilities (PLN thou.) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Amounts due to banks 3,273,468 3,231,573 3,808,611 3,059,431 2,969,133 Derivative financial instruments 1,288,793 1,691,718 1,568,728 1,094,037 1,729,580 Amounts due to customers 183,067,263 187,531,268 193,499,927 200,808,978 200,616,936 Debt securities in issue 10,663,265 10,476,503 12,310,939 12,130,336 10,728,103 Subordinated liabilities 2,645,731 2,661,354 2,672,670 2,675,537 1,875,278 Other liabilities 9,149,329 10,093,796 9,384,514 8,422,050 9,600,200 Total liabilities 210,087,849 215,686,212 223,245,389 228,190,369 227,519,230 Total equity 14,069,170 14,609,379 15,328,957 17,766,994 18,548,737 Total liabilities and equity 224,157,019 230,295,591 238,574,346 245,957,363 246,067,967 28 Selected Financial Data Consolidated Statement of Financial Position – quarterly Investor Presentation | Q1 2025
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Financial Ratios Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Net Interest Margin, quarterly 4.37% 4.44% 4.31% 4.27% 4.23% Net Interest Margin, YtD 4.37% 4.41% 4.37% 4.35% 4.23% Net Interest Margin, excl. CHF portfolio, YtD 4.43% 4.46% 4.43% 4.39% 4.29% Cost/Income Ratio, quarterly 30.4% 27.0% 25.8% 29.7% 33.9% Cost/Income Ratio, YtD 30.4% 28.7% 27.7% 28.2% 33.9% Cost of Risk, quarterly 0.17% 0.58% 0.62% 0.57% 0.53% Cost of Risk, YtD 0.17% 0.37% 0.46% 0.49% 0.53% Return on Equity, ROE net, quarterly 7.4% 11.6% 14.9% 23.8% 15.6% Return on Equity, ROE net, YtD 7.4% 9.6% 11.4% 14.8% 15.6% Return on Assets, ROA net, quarterly 0.47% 0.74% 0.97% 1.62% 1.17% Return on Assets, ROA net, YtD 0.47% 0.61% 0.73% 0.97% 1.17% Loan-to-Deposit Ratio 63.5% 64.6% 64.0% 60.5% 63.7% Total Capital Ratio 16.22% 16.24% 16.19% 17.03% 15.35% Tier 1 Capital Ratio 14.25% 14.49% 14.64% 15.71% 14.24% Leverage ratio 5.4% 5.2% 5.6% 6.1% 6.1% Equity / Assets 6.3% 6.3% 6.4% 7.2% 7.5% TREA / Assets 40.7% 40.7% 40.6% 41.6% 45.7% NPL ratio 4.1% 4.3% 4.1% 4.1% 3.8% NPL coverage ratio 55.3% 54.2% 53.8% 51.1% 52.6% NPL coverage ratio incl. stage 1&2 provisions 76.6% 72.2% 72.2% 71.4% 73.5% 29 Selected Financial Data mBank Group’s Ratios – quarterly and cumulatively Investor Presentation | Q1 2025
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30 Quarterly results of mBank Group – Net interest income Loans received Other (incl. derivatives) Deposits (incl. from banks) Subordinated liabilities Investment debt securities Other (incl. cash and Debt securities held for trading Loans and advances Derivatives (banking book) Issue of debt securitiesshort-term placements) 291.4 40.7 117.51.1 730.8 Q2/24 297.1 41.0 141.3 1.1 793.0 Q3/24 285.2 40.3 117.6 Q1/24 813.9 Q4/24 232.7 26.0 155.3 1.1 772.6 Q1/25 305.0 42.1 138.6 1.1 1,221.1 1.1 1,273.5 1,258.1 1,187.7 734.3 1,181.6 -2.7% -5.6% Q1/24 278.317.816.2 679.0 2,354.9 Q2/24 -110.1 265.730.612.0 752.7 2,783.8 Q3/24 -8.2 248.048.618.8 764.3 2,691.3 Q4/24 316.823.912.5 650.0 2,557.9 3,603.0 3,734.8 3,762.8 Q1/25 3,561.2 2,587.2 815.6 25.0198.6 3,626.4 +1.8% -3.6% Presented development is adjusted for the impact of “credit holidays” 256.8 Small decline of net interest income due to shorter quarter, while funding costs contained Investor Presentation | Q1 2025 Structure of mBank Group’s interest income Structure of mBank Group’s interest expense PLN million PLN million
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31 Quarterly results of mBank Group – Net fees and commissions 80.5 Q1/24 123.1 4.6 56.8 9.917.1 85.4 Q2/24 118.3 7.0 63.0 9.816.8 106.5 Q3/24 124.9 8.9 64.5 11.720.0 103.5 Q4/24 119.3 5.5 58.0 7.5 284.0 296.9 13.2 333.6 Q1/25 320.4 93.5 321.3 9.9 68.0 4.6 132.3 12.1 +12.8% -4.0% 45.7 133.5 167.8 Q1/24 83.4 121.3 35.728.4 153.2 42.5 137.8 185.7 Q2/24 81.1 119.0 39.429.8 155.9 34.7 146.5 214.1 Q3/24 92.5 124.6 37.828.5 161.2 42.5 145.3 198.5 Q4/24 83.5 120.0 36.727.8 153.1 788.1 820.5 830.9 Q1/25 823.4 194.9 768.2 53.0 155.4 30.038.9 115.7 88.8 146.6 +7.2% -0.9% Discharged brokerage fees Other (incl. insurance activity) Cash handling fees Fees paid to NBP and KIR Brokerage activity & securities issue Foreign currencies exchange Credit related fees Other (incl. custody) Accounts & money transfers Insurance activity Payment card fees Commissions paid to external entitiesPayment card fees Guarantees & trade finance Uptick of net fees driven by higher income from brokerage activity and payment cards Investor Presentation | Q1 2025 Structure of mBank Group’s fee and commission income Structure of mBank Group’s fee and commission expense PLN million PLN million
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1% 81% 1% 32 Selected Financial Data – Balance sheet analysis 10.4 2.610.7 183.1 3.3 03/24 14.6 11.8 2.710.5 187.5 3.2 06/24 15.3 11.0 2.712.3 193.5 3.8 14.1 17.8 9.5 2.712.1 200.8 3.1 12/24 18.5 11.3 1.910.7 200.6 3.0 03/25 224.2 230.3 238.6 246.0 246.1 09/24 62.2 0.71.3 116.3 12.1 03/24 29.2 66.8 0.61.0 121.2 11.6 06/24 32.9 62.8 0.70.9 123.8 17.5 31.6 44.0 69.0 0.61.2 121.4 9.7 12/24 24.6 72.1 0.62.1 127.8 18.8 03/25 224.2 230.3 238.6 246.0 246.1 09/24 29% 52% 8% 0% 1% Amounts due to customers Other liabilities Amounts due to other banks Subordinated liabilities Loans and advances to customers Investment securities Trading securities Other assets Amounts due from banks Derivative financial instruments 10% Debt securities in issue Equity (total) 8% 4% 5% Investor Presentation | Q1 2025 Structure of mBank Group’s total assets Structure of mBank Group’s liabilities and equity PLN billion PLN billion
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31.03.2025 72.0% 33 Selected Financial Data – Structure of loans and deposits 1 Including local currency mortgage loans granted in Poland, the Czech Republic and Slovakia 2 Including repo transactions Power & heating distribution Transport and logistics Professional activities Motorisation Metals Construction materials Health care Chemicals and plastics Wholesale trade Wood, furniture and paper Other (<1.1%) 5.5% 4.6% Real estate 2.7% 2.5% 2.4% 2.1% 2.1% 1.8% 1.7% 1.5% 1.3% 1.3% 1.1% 11.0% Financial activities Building industry Food sector 3.9% PLN billion Corporate clients: current accounts2 42.9 Corporate clients: term deposits 12.4 Individual clients: current accounts 75.0 Individual clients: saving accounts 44.7 Individual clients: term deposits 24.7 Public sector clients 0.9 TOTAL 200.6 PLN billion Corporate loans 59.7 Mortgage loans in FX to individuals 1.9 Mortgage loans in LC to individuals1 44.4 Mortgage loans to microfirms 1.9 Non-mortgage retail loans 23.4 Public sector loans 0.1 TOTAL 131.4 A well diversified loan portfolio with granular structure of exposures 54.4% Investor Presentation | Q1 2025 Structure of mBank Group’s gross loans, by client segment and industry Structure of mBank Group’s deposits 31.03.2025 21.4% 6.2% 37.4% 22.3% 12.3% 0.4% 45.5% 1.4% 33.8% 1.4% 17.8% 0.1%
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34 Selected Financial Data – Funding profile Note: The table does not include covered bonds issued by mBank Hipoteczny. Fitch Ratings S&P Global Ratings Long-term rating BBB BBB+ Outlook stable stable Short-term rating F2 A-2 Viability rating / SACP bbb bbb Corporate__ deposits 88.2% Retail deposits Due to banks Debt securities in issue Subordinated liabilities Other Nominal value Currency Issue date Maturity date Tenor Coupon 500 M EUR 20.09.2021 21.09.2027 6.0 Y 0.966% 750 M EUR 11.09.2023 11.09.2027 4.0 Y 8.375% 500 M EUR 27.09.2024 27.09.2030 6.0 Y 4.034% 250 M CHF 21.03.2018 21.03.2028 10.0 Y LIBOR3M +2.75% 550 M PLN 09.10.2018 10.10.2028 10.0 Y WIBOR6M +1.80% 200 M PLN 09.10.2018 10.10.2030 12.0 Y WIBOR6M +1.95% 113 M CHF 04.09.2017 04.09.2025 8.0 Y - 176 M CHF 30.07.2018 30.07.2025 7.0 Y - 138 M CHF 02.08.2019 02.08.2027 8.0 Y - Issues under Euro Medium Term Note (EMTN) Programme Subordinated loan and bonds Loans and advances received 1 1 1 bonds issued in non-preferred senior (NPS) format; 2 bond issued in preferred senior (PS) format 2 Investor Presentation | Q1 2025 Structure of mBank Group’s funding Summary of mBank’s long-term funding instruments 31.03.2025 31.03.2025 Summary of mBank’s ratings 31.03.2025 63.5% 24.7% 1.3% 4.7% 0.8% 5.0%
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Countercyclical Capital Buffer (CCyB), calculated as the weighted average of the CCyB rates that apply in the countries where the relevant credit exposures are located. Systemic Risk Buffer (SRB), originally set at 3.0% in Poland, reduced to 0% starting from 19.03.2020; for mBank it applies only to domestic exposures. Other Systemically Important Institution (O-SII) Buffer, imposed by an administrative decision of the PFSA; its level is reviewed annually. Conservation Capital Buffer (CCB), equal for all banks in Poland as introduced by the Act on Macroprudential Supervision Over the Financial System and Crisis Management in the Financial System. Individual additional Pillar 2 capital requirement for risk related to FX retail mortgage loans (FXP2) imposed as a result of risk assessment carried out by the PFSA. CRR Regulation minimum level (CRR) based on the applicable EU Regulation. 35 Selected Financial Data – Capital requirements and liquidity 14.24% reported 0.08%0.50% 2.50% 0.00% 6.00% minimum 15.35% reported 0.08%0.50% 2.50% 0.00% 8.00% minimum 9.08% 11.08% +5.16 pp +4.27 pp Tier 1 Capital Ratio Total Capital Ratio 03/24 06/24 09/24 12/24 03/25 151% 211% 153% 213% 157% 215% 159% 222% 153% 222% Net Stable Funding Ratio (NSFR) Liquidity Coverage Ratio (LCR) Basel III requirement ≥100% Ratios for mBank Group as of 03/25 NSFR: 159% LCR: 230% Investor Presentation | Q1 2025 Regulatory capital requirements for mBank Group 31.03.2025 Development of mBank’s liquidity ratios
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36 Selected Financial Data – Fulfilment of MREL requirements 1 MREL ratios recalculated taking into account the retrospective inclusion of the net profit for Q4/24 in own funds (after the Ordin ary General Meeting) MREL requirement CBR calculated on TREA (w/o mBH) as of 03/25 03/24 06/24 09/24 12/24 03/25 3.15% 15.36% minimum requirement 23.63% 23.58% 24.05% 24.73% 22.40% 18.51% +3.89 03/24 06/24 09/24 12/24 03/25 3.15% 13.69% minimum requirement 22.77% 22.73% 22.50% 23.10% 20.91% 16.84% +4.07 03/24 06/24 09/24 12/24 03/25 minimum requirement 9.04% 8.97% 9.12% 9.58% 9.41% 5.91% +3.50 03/24 06/24 09/24 12/24 03/25 minimum requirement 8.71% 8.65% 8.54% 8.95% 8.79% 5.26% +3.53 1 1 1 1 Investor Presentation | Q1 2025 Development of mBank Group’s MRELTREA ratio Development of mBank Group’s MRELTREA Subordinated ratio Development of mBank Group’s MRELTEM ratio Development of mBank Group’s MRELTEM Subordinated ratio
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37 Overview of customer activity and process digitalisation number of active users logging into every month, thousand number of unique users, thousand, in Poland number of users performing defined actions, thousand number of customers serviced in corporate area, thousand 481 3,229 03/24 533 3,377 03/25 3,710 3,909 +199 03/24 03/25 1,535 1,972 +437 575 3,422 03/24 599 3,495 03/25 3,997 4,093 +96 03/24 03/25 35.1 36.5 +1.4 mBank PL mBank CZSK mBank PL mBank CZSK 90% 89% share of processes in retail banking area initiated by the clients in digital channels (in Q1/25) 81% share of digital channel in the sale of non-mortgage loans (by number of pieces in Q1/25) 94% share of corporate clients with at least one user logging in tomobile application monthly (in Q1/25) share of digitally opened accounts in new acquisition using a dedicated process (in Q1/25) Investor Presentation | Q1 2025 Users of mobile application Monthly active users (MAU) Corporate clientsUsers of PFM functionalities
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38 A leading mobile banking offer for individual clients fully remote account opening with e-ID or a selfie and agreement approved via a text message logging in and confirmation of transactions with a PIN code, fingerprint or Face ID contactless payments with Google Pay and Apple Pay, express transfers using telephone numbers and BLIK functionalities of personal financial management (PFM) and value added services reminders from Payment Assistant and scanning of data to the transfer form from the invoices a fully functional marketplace (mOkazje zakupy) in cooperation with popular shopping platform Morele, accompanied by one-click financing options Investor Presentation | Q1 2025 easiest way to manage your finances recent transactions pace of spending useful shortcuts 4.6 4.8 4.3 Well-designed functionalities for client convenience Mobile application’s dashboard and basic features
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39 Retail Banking – profit and network 1 including financial centres and agency service points 6,600 22,214 Q1/24 7,033 24,287 Q2/24 7,453 24,935 Q3/24 8,324 25,406 Q4/24 7,980 24,075 Q1/25 28,814 31,321 32,388 33,730 32,055 +11% -5% 82 82 82 138 139 141 45 43 45 41 1531 03/24 40 1529 12/24 40 1529 03/25 352 348 352 0 mBank CZSK mFinanse1 mKiosks Advisory centres Light branches (in shopping malls) mBank’s outlets (standard format) mBank CZSK Poland excluding impact of "credit holidays“ 68.6 1,031.7 Q1/24 52.7 1,120.5 Q2/24 57.4 1,129.8 Q3/24 30.2 1,037.4 Q4/24 61.7 964.4 Q1/25 1,100.3 1,173.2 1,187.2 1,067.6 1,026.1 -7% -4%-4% Investor Presentation | Q1 2025 cards BLIKmBank PL mBank CZSK due to closing of dormant accounts Profit before income tax of the segment Number of Retail Service Locations PLN million Number of retail clients Value of non-cash payments with cards and BLIK thousand PLN million 1,100 4,593 03/24 1,103 4,576 06/24 1,108 4,579 09/24 1,116 4,599 12/24 1,138 4,644 03/25 5,693 5,679 5,687 5,714 5,782 +89 +68
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17% 32% 51% Saving accounts Other 40 Retail Banking – business volumes 275 24,484 42,551 66,272 06/24 293 24,253 44,257 68,619 09/24 259 24,753 44,751 274 12/24 296 24,677 46,401 73,027 03/25 24,421 39,869 64,705 03/24 129,268 133,583 137,421 142,248 144,402 72,485 +11.7% +1.5% Current accounts Term deposits 33,554 21,934 2,047 5,956 3,158 34,323 06/24 22,645 1,980 5,793 2,851 36,431 09/24 22,674 1,937 5,721 03/24 37,804 12/24 23,396 1,899 5,630 1,851 38,772 03/25 21,325 2,077 5,992 3,686 2,453 67,417 69,700 70,589 71,546 66,634 +7.4% +1.4% FX mortgage loans to individuals Non-mortgage loans Mortgage loans granted in CZSK Note: Currency and geographical breakdown based on management information. 19% 31% 50% 32% 6% 50% 33% 2% 54% 3% 9% 3% 8% PLN mortgage loans to individuals Mortgage loans to microfirms Investor Presentation | Q1 2025 Development of gross loans to retail banking clients Development of deposits from retail banking clients PLN million PLN million
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41 mBank in the Czech Republic and Slovakia Note: Volumes based on management information. 2,902 5,912 03/24 2,963 5,982 06/24 3,009 5,985 09/24 3,052 6,102 12/24 3,052 6,102 03/25 8,813 8,946 8,994 9,153 9,153 +4% 0% SK CZ 12.8% 4,269 11,110 03/24 4,377 12,254 06/24 4,286 12,624 09/24 4,324 12,709 12/24 4,324 12,709 03/25 15,379 16,631 16,910 17,033 17,033 +11% 0% SK CZ 11.8% 40.1 93.2 Q1/24 41.4 81.6 Q2/24 48.7 87.6 Q3/24 46.4 91.5 Q4/24 46.4 98.5 Q1/25 133.2 123.0 136.4 137.9 145.0 +9% +5% SK CZ 325.2 775.1 03/24 323.3 779.3 06/24 322.0 786.0 09/24 323.8 791.8 12/24 338.8 798.9 03/25 1,100.3 1,102.6 1,108.0 1,115.6 1,137.7 +37.4 +22.1 SK CZ Main interest rate CZ: 3.75% SK: 2.65% 31.03.2025 Users of mobile application CZ: 371.1 SK: 161.5 31.03.2025 Investor Presentation | Q1 2025 Gross loans and share in total mBank’s retail volume Deposits and share in total mBank’s retail volumes PLN million PLN million Number of clients Development of total revenues thousand PLN million
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7 light branches 7 financial centres 16 mKiosks 7 light branches 2 financial centres 6 mKiosks 42 mBank in the Czech Republic and Slovakia Note: Volumes based on management information. Czech Republic Slovakia physical network: physical network: 23,487 03/24 22,303 12/24 22,419 03/25 -5% +1% 435.2 03/24 420.6 12/24 414.1 03/25 -5% -2% 10,529 03/24 12,633 12/24 13,615 03/25 +29% +8% 66,114 03/24 74,819 12/24 76,201 03/25 +15% +2% 223.4 03/24 275.6 12/24 294.5 03/25 +32% +7% 1,003.2 03/24 1,013.8 12/24 1,023.7 03/25 +2% +1% Investor Presentation | Q1 2025 Mortgage loans Non-mortgage loans CZK million CZK million Customer deposits CZK million Mortgage loans Non-mortgage loans EUR million EUR million Customer deposits EUR million
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43 Best digital banking services for corporate clients Investor Presentation | Q1 2025 entirely digital onboarding process, with no in-person contact and printouts required advanced mBank CompanyNet transactional system, allowing for high level of personalization remote access and constant control via enhanced mBank CompanyMobile application Administrator Centre for self-managing user permissions and authorisation schemes electronic sending of documents, applications, signing of agreements mAuto.pl online platform with an offer of new and used cars, financed by leasing or long-term rental ▪ option to activate the app with a QR code ▪ possibility to log into the application with a PIN code, fingerprint or face scan ▪ functionalities to facilitate the daily management of a company's finances ▪ advanced module to make FX transactions ▪ dedicated icon to directly call the customer centre First-class digital banking offer for companies Mobile application’s dashboard and basic features
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44 Corporate & Investment Banking – profit and network 1 Corporate loan and deposit volumes (for mBank stand-alone) according to NBP rules (monetary reporting system – MONREP) 52,494 03/24 52,201 06/24 54,497 09/24 58,724 12/24 54,287 03/25 +3.4% -7.6% 33,864 03/24 34,584 06/24 35,288 09/24 34,850 12/24 36,492 03/25 +7.8% +4.7% 657.5 Q1/24 777.4 Q2/24 640.6 Q3/24 645.6 Q4/24 580.4 Q1/25 -12% -10% Łódzkie Zachodnio- Pomorskie Pomorskie Warmińsko- Mazurskie Podlaskie Mazowieckie Lubelskie Świętokrzyskie Podkarpackie Małopolskie Śląskie Opolskie Dolnośląskie Wielkopolskie Kujawsko- Pomorskie Lubuskie 2 2 1 2 1 1 4 2 2 1 2 2 1 2 1 1 1 4 1 1 2 1 2 2 1 1 mBank’s branches, incl. 13 advisory centres mBank’s offices 29 14 Investor Presentation | Q1 2025 Profit before income tax of the segment Number of corporate service locations – 31.03.2025 PLN million Development of loans to enterprises 1 Development of deposits from enterprises 1 PLN million PLN million
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45 Corporate & Investment Banking – business volumes Note: Corporate clients split: K1 – annual sales over PLN 1 B and non-banking financial institutions; K2 – annual sales of PLN 50 M to PLN 1 B; K3 – annual sales below 50 M and full accounting. 1,672 12,907 23,939 15,431 06/24 1,789 13,236 24,439 16,616 09/24 1,299 14,825 27,317 1,898 12/24 1,360 14,105 26,217 14,533 03/25 12,710 24,985 14,206 03/24 53,799 53,949 56,079 58,561 56,215 15,119 +4.5% -4.0% K1 K2 K3 Other 23,717 03/24 6,491 3,258 8,900 2,820 23,713 12,361 06/24 6,446 3,251 9,143 2,951 24,338 11,675 09/24 6,681 3,093 8,625 2,860 24,341 8,535 12/24 6,882 3,225 8,798 3,028 25,730 12,224 03/25 6,225 3,269 8,867 2,664 8,886 57,543 57,803 54,396 59,888 53,367 +12.2% +10.1% K1 K2 K3 mLeasing mFaktoring Other1 1 Other category includes leasing granted to clients of retail segment, but classified in the financial statements to 'loans an d advances to corporate customers' Investor Presentation | Q1 2025 Development of gross loans to corporates and public sector Development of deposits from corporates and public sector PLN million PLN million
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46 Source: Calculation based on data published by Polish Leasing Association (PLA) and Polish Factors Association (PFA). Performance of main subsidiaries of mBank established in 1995 offered services include domestic and export recourse and non-recourse factoring and import guaranteesestablished in 1991 offered financing in the form of leasing of cars, trucks, machinery and real estate as well as car fleet management (CFM) servicesestablished in 1999 specialised mortgage bank and active issuer of covered bonds on both domestic and foreign markets Market share in 2024: 6.5% Market share in 2024: 7.8% Investor Presentation | Q1 2025 Outstanding amount of covered bonds Leasing contracts PLN million, nominal value, incl. private placement PLN million Factoring contracts PLN million Company’s profit before income tax Company’s profit before income tax PLN million PLN million Company’s profit before income tax PLN million 2.6 Q1/24 3.8 Q4/24 5.9 Q1/25 +132% +54% 1.8 Q1/24 5.9 Q4/24 Q1/25 -5.3 +/- +/- 1,989 Q1/24 1,590 Q4/24 1,869 Q1/25 -6% +18% 8,562 Q1/24 9,541 Q4/24 9,171 Q1/25 +7% -4% 77.3 Q1/24 73.2 Q4/24 56.7 Q1/25 -27% -23% 6,190 03/24 6,615 12/24 5,794 03/25 -6% -12%
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47 ESG is well embedded in mBank Group's strategy (1/2) Reducing greenhouse gases (GHG) emissions of our loan portfolio, steered by SBTi as the most prominent driver to become net-zero ▶ transform our loan portfolioto reach net-zero by 2050 Environmental pillar Partnering with our clients by offering products and services to stimulate their sustainable and green activities ▶ provide PLN 10 billionof green financing(for renewable energy sources, decarbonization, circular economy, e-mobility,etc.) by the end of 2025,includingPLN 5 billionfrom mBank and PLN 5 billionfromothersourcessuchas consortiaand greenbondsissues arranged for clients ▶ increase the yearly sale of mortgage loansfor real estates compliant with the NZEB-10% (Nearly Zero Energy Building) standard to 14% in 2024 and 18% in 2025 of total mBank’s mortgage loan production (by volume) ▶ offer at least 50%of investment solutionsmanaged within mBank Group promoting environmental or social characteristics (“light green” in line with Art. 8 of SFDR) by 2025 ▶ issue green bondsin the amount of PLN 5 billionuntil the end of 2025 Limiting own GHG emissions by decarbonizing our operations ▶ become net zero in own operationsby 2040 1 please see the webpage for disclaimer statements ESG ratings 1 as of 09.01.2025 as of 08.11.2024 Investor Presentation | Q1 2025
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48 ESG is well embedded in mBank Group's strategy (2/2) Social pillar Governance pillar Ensuring balanced gender representation at mBank Group Integrating environmental, social and governance risks with mBank’s risk management ▶ increase the level of gender representationin managerial bodies of mBank’s main subsidiaries (including mLeasing, mFaktoring, mBank Hipoteczny, mTFI, mFinanse) to 40% by the end of 2026 ▶ incorporate ESG into credit and Internal Capital Adequacy Assessment Process documentation, and perform materiality assessmentof ESG risk each year Providing an attractive work environment that ensures diversity, equity and inclusion ▶ ensure gender balancein the succession program (at minimum 45% of a given gender) and reduce the pay gap (keeping it below 5%) Enhancing our corporate governance by ESG aspects ▶ have all TOP 100 managers (at mBank and main subsidiaries) with goals related to ESGat a 10% weight in their Objective and Key Results Making social impact through fostering financial health and education of our clients Promoting transparency and ESG standards among our business partners ▶ continue financial educationand promote responsible management of personal financeamong clients by growing the number of users of dedicated functionalities in mBank's mobile and internet services ▶ have 70% of eligible partners and suppliers (under central purchasing process) to be compliant with the 10 Principles of the UN Global Compactby 2025 Investor Presentation | Q1 2025
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PLN million 2020 2021 2022 2023 2024 ∆ YoY Net interest income 4,009.3 4,126.3 5,924.0 8,873.5 9,589.0 +8.1% Net fee and commission income 1,508.3 1,867.8 2,120.1 1,915.9 1,971.9 +2.9% Net trading and other income 349.2 117.1 -187.2 12.9 446.0 +3345% Total income 5,866.8 6,111.1 7,856.9 10,802.3 12,006.9 +11.2% Total costs -2,411.1 -2,456.9 -3,319.2 -3,074.4 -3,388.3 +10.2% Loan loss provisions and fair value change -1,292.8 -878.6 -849.3 -1,105.5 -585.5 -47.0% Operating profit before legal provisions and taxes 2,162.8 2,775.7 3,688.4 6,622.3 8,033.1 +21.3% Costs of legal risk related to FX loans -1,021.7 -2,758.1 -3,112.3 -4,908.2 -4,307.0 -12.2% Taxes on the Group balance sheet items -531.4 -608.6 -684.2 -743.6 -752.4 +1.2% Income tax -506.0 -587.8 -594.5 -946.5 -730.4 -22.8% Net profit or loss 103.8 -1,178.8 -702.7 24.1 2,243.2 +9226% Total assets 178,861 198,373 209,892 226,981 245,957 +8.4% Gross loans to customers 111,912 120,856 123,437 117,229 124,985 +6.6% Individual clients 65,655 72,871 71,122 66,260 70,589 +6.5% Corporate clients 46,025 47,832 52,207 50,836 54,251 +6.7% Customer deposits 133,672 157,072 174,131 185,467 200,809 +8.3% Individual clients 97,976 112,446 122,890 128,412 142,248 +10.8% Corporate clients 35,250 44,018 49,981 56,439 57,720 +2.3% Total equity 16,675 13,718 12,715 13,737 17,767 +29.3% Net interest margin 2.3% 2.2% 3.7% 4.2% 4.3% +0.1pp Cost/Income ratio 41.1% 40.2% 42.2% 28.5% 28.2% -0.3pp Cost of risk 1.20% 0.76% 0.69% 0.93% 0.49% -0.44pp Return on equity (ROE) 0.6% -7.2% -5.3% 0.2% 14.8% +14.6pp Tier 1 capital ratio 17.0% 14.2% 13.8% 14.7% 15.7% +1.0pp Total capital ratio 19.9% 16.6% 16.4% 17.0% 17.0% 0.0pp 49 Historical financial results of mBank Group Investor Presentation | Q1 2025
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50 Strategic financial targets of mBank Group 1the growth pace calculated against the level of revenues adjusted for the negative impact of “credit holidays” at PLN 9,191 million strategic measure target level execution in Q1 2025 Efficiency [in 2025] Cost/Income ratio (C/I) below 40% 33.9% supported by high interest rates offsetting inflationary pressure Stability [in the mid-term] Tier 1 capital ratio year-end level min 2.5 p.p. above the PFSA requirement +5.2 p.p. surplus helped by secu- ritisations and issuance of AT1 bonds Cost of risk (COR) ~0.80% 0.53% lower thanks to solid financial standing of clients and NPL sale Growth [CAGR till 2025] Dynamics of loans average 2022-2025: ~3% +9.5% YoY lending revival fuelled by surging new sales in both client segments Dynamics of deposits average 2022-2025: ~6% +9.6% YoY growth focused on current accounts amid pricing optimisation Dynamics of total revenues average 2022-2025: 4-5% +3.7% YoY affected by base effect, as dynamic rise of core income slowed down Profitability [in 2025] Net interest margin (NIM) above 3.0% 4.2% thanks to high loan yields and active deposit management Return on equity (ROE) ~14% 15.6% despite legal costs related to CHF loans, while core ROE at 28.1% 1 ✓ ✓ ✓ ✓ ✓ ✓ Investor Presentation | Q1 2025 Strategic financial targets of mBank Group for 2023-2025 compared to results for Q1 2025 ✓
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70 75 80 85 90 95 100 105 110 115 120 125 31.03.24 30.04.24 31.05.24 30.06.24 31.07.24 31.08.24 30.09.24 31.10.24 30.11.24 31.12.24 31.01.25 28.02.25 31.03.25 mBank WIG-Banks Index WIG-20 Index 31.03.2024 740.2 MIN (28.11.2024) 530.0 MAX (25.03.2025) 864.2 31.03.2025 811.2 51 mBank’s share price performance Polish banking stocks surged considerably in Q1/25 on strong sentiment improvement Source: WSE, Bloomberg (data as of 31.03.2025). WIG20 3.033% WIG30 2.946% WIG 2.222% WIG-Banks 7.091% WIG-Poland 2.234% ▪ mBank has been listed on the Warsaw Stock Exchange since October 1992 ▪ A strategic shareholder, Germany’s Commerzbank, owns 69.07% of shares ISIN PLBRE0000012 Bloomberg MBK PW Number of shares issued 42 496 973 +10.4% +9.6% +18.5% mBank is also a part of MSCI Poland index. mBank’s share price Investor Presentation | Q1 2025 mBank’s index membership and weights as of 31.03.2025 mBank’s share performance v. main indices (rebased to 100)
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52 Disclaimer This presentation has been prepared by mBank S.A. for information purposes only and is based on the Condensed Consolidated Financial Statements for the first quarter of 2025, prepared under the International Financial Reporting Standards. For more detailed information on mBank S.A. and mBank Group results, please refer to the respective financial statements and data. This presentation contains certain estimates and projections regarding potential future trends. Estimates and projections presented in this presentation rely on historical information and other factors and assumptions which reflect mBank S.A. current position about potential future trends which seem justified under the given circumstances. Estimates and projections are inherently subject to substantial and numerous uncertainties and to a wide variety of significant business, economic and competitive risks, and the assumptions underlying the projections may be inaccurate in any material respect. Therefore, the actual results achieved may vary significantly from the projections, and the variations may be material. Statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. No statement in this presentation is intended to be a profit forecast. While this information has been prepared in good faith, no representation or warranty, expressed or implied, is or will be made and no responsibility or liability is or will be accepted by mBank S.A. or any subsidiaries or affiliates of mBank S.A. or by any of their respective officers, employees or agents in relation to the accuracy or completeness of these materials. The presentation should not be treated as a recommendation to purchase securities, an offer, invitation or a solicitation of an offer to purchase, invest or conclude any transaction on securities, in particular with respect to securities of mBank and its subsidiaries. This presentation has been completed as of the date indicated at the beginning. mBank S.A. does not undertake any obligation to update or revise this presentation, including any forward-looking estimates and projections, whether as a result of new information, future events or otherwise. Investor Presentation | Q1 2025
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Contact details Karol Prażmo Managing Director for Treasury and Investor Relations +48 607 424 464 karol.prazmo@mbank.pl Joanna Filipkowska Head of Investor Relations +48 510 029 766 joanna.filipkowska@mbank.pl Paweł Lipiński +48 508 468 023 pawel.lipinski@mbank.pl Marta Polańska +48 508 468 016 marta.polanska@mbank.pl Investor Relations website: www.mbank.pl/en/investor-relations/ mBank’s Investor Relations at your service: E-mail address: investor.relations@mbank.pl mBank S.A., ul. Prosta 18, 00-850 Warszawa