Q1 2026 mBank SA Earnings Call Transcript
Key Points
- mBank SA (FRA:BRU) achieved a record gross profit of PLN1.5 billion in Q1 2026, marking a 54% increase year-on-year.
- The bank's Tier 1 capital ratio stood at 14.1%, well above the regulatory requirement, providing a comfortable capital buffer.
- mBank SA's deposit base increased by 18% year-over-year, reaching PLN237 billion, indicating strong client trust.
- The bank's cost-to-income ratio was maintained at a healthy 30.8%, showcasing strong operational efficiency.
- Standard & Poor's upgraded mBank SA's outlook to positive, reaffirming its BBB+ rating, while Fitch reaffirmed its BBB rating, strengthening the bank's credit profile.
- Net interest income declined by 3.7% quarter-on-quarter and 3.2% year-on-year due to lower interest rates and pressure on asset yields.
- The net interest margin decreased to 3.5%, driven by lower loan yields and reduced returns on floating rate securities.
- Despite strong profitability, net profit was impacted by a higher tax burden under the new corporate income tax regime in Poland.
- Total costs increased by 8.4% year-on-year, driven by higher personnel costs, IT-related expenses, and depreciation.
- The bank's cost of risk is expected to rise to around 70 basis points by the end of 2026, reflecting a cautious stance due to geopolitical uncertainties.
Good afternoon, ladies and gentlemen, and welcome to mBank Group's quarterly results conference call after the first quarter of 2026. Thank you for joining us today. My name is Joanna Filipkowska, Investor Relations. And joining me today are Pascal Ruhland, Chief Financial Officer; Marek Lusztyn, Chief Risk Officer; and Marcin Mazurek, Chief Economist. As usual, the presentation materials are available on our Investor Relations website and today's call is being recorded.
With that, let me hand over to Pascal to present the highlights of the first quarter.
Thank you, (inaudible). Hello and also welcome from my side. Let me start with a brief overview of the key highlights for the first quarter. In Q1, we delivered strong, well-balanced growth while continuing to operate from a very solid capital base. On the asset side, gross loans of the group increased year-on-year from
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