Half Year 2026 mBank SA Earnings Call Transcript
Key Points
- Record quarterly net profit of PLN1.1 billion and ROTCE of nearly 22%, driven by strong loan and deposit growth.
- Market share gains across all key product categories, with mortgage market share up 0.7 percentage points year-on-year to 9.1%.
- Strong balance sheet growth with total assets exceeding PLN300 billion and client base surpassing 6 million.
- Cost-to-income ratio remains excellent at 30% reported and below 33% normalized, well below the strategic target of 35%.
- Swiss franc legal risk costs remain low and are expected to stay insignificant, reducing legacy burden.
- Capital position remains strong with CET1 ratio comfortably above regulatory requirements, supported by potential RWA reductions from model adjustments and securitization.
- Revised 2026 revenue guidance upward, expecting revenues to exceed 2025 levels, with NII returning to growth in Q2.
- Cost of risk revised down to around 55 basis points for 2026, reflecting low provisioning and strong asset quality.
- Confirmed intention to pay out 30% of 2026 net profit as dividend, with eligibility for up to 75% distribution.
- Strong growth in mortgage sales (up 74% year-on-year) and corporate lending (up 16% year-on-year), outpacing the market.
- Net interest margin declined slightly to 3.47% due to lower interest rates, though expected to stabilize around 3.5%.
- Corporate lending spreads have compressed, reflecting competitive pressure in the Polish market.
- Higher effective tax burden, with over PLN850 million in taxes paid in Q2 alone, impacting profitability.
- Cost of risk increased in Q2 to 37 basis points from 30 basis points in Q1, driven by isolated corporate cases.
- Operating costs increased 8% quarter-on-quarter and 10% year-on-year, driven by IT investments and marketing.
- CET1 ratio declined during the quarter due to strong loan growth and increased risk-weighted assets.
- Uncertainty regarding UniCredit's potential stake increase in Commerzbank, with management declining to comment on potential support.
- Legacy cash loan portfolio still subject to legal risk, though provisions are insignificant and mBank wins 90% of cases.
- Net fee and commission income growth was partly offset by a one-off in Q2 2025 and higher acquisition costs.
- Dependence on interest rate stability for NIM guidance, with any further cuts potentially pressuring margins.
Good afternoon, everyone, and welcome to mBank Q2 2026 results conference. We are very pleased to have you with us today. It has been six months of our new strategy implementation behind us, so it is a good moment to look at it, if we are on track or not. I would like to start with a very strong message.
mBank continued to gain momentum in the second quarter and further strengthen its market position. We increased market share across the board in loans and deposits of our retail and corporate segment. Our market share in mortgage loan increased to 9.1%, up by 0.7 percentage point year-on-year. This shows the strength of our franchise and the quality of our client relationship.
The message I would like to send is following: we are growing at a healthy pace, building scale, and moving consistently towards our 2030 ambition of at least 10% market share in all key product categories. Organic growth is a real engine of value creation for mBank. Our financial performance is also firmly on track with our
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