mBank S.A.

mBank reported Q2 2026 net profit of PLN 1.1 billion, its highest quarterly profit ever, and return on tangible equity of almost 22%. Total income was PLN 3.1 billion in the quarter; net interest margin was 3.47%, and net interest income increased by around 3% quarter-on-quarter. On a year-over-year basis, loans grew nearly 13% and deposits grew 21%; the first half net result increased by more than 20% year-on-year, while first-half total income was PLN 6.2 billion, broadly unchanged. Reported cost-to-income was 30% and normalized below 33%; cost of risk was 37 bps in Q2 and 34 bps in H1. Guidance: 2026 revenues are now expected to exceed 2025 levels; NIM is expected to stay broadly stable around 3.5% assuming constant rates, or slightly above 3.5% in Q3 and Q4 if rates do not fall further; cost-to-income is expected to remain well below 35%; full-year cost of risk is now guided to around 55 bps.

Cezary Kocik framed the quarter as proof that the new strategy is working, emphasizing that mBank is gaining momentum, taking share across loans and deposits, and building scale toward its 2030 ambition of at least 10% share in key product categories. He highlighted resilience in profitability, strong capital, and a 30% dividend intention for 2026, while noting the bank would currently be eligible to distribute up to 75% of net profit based on current criteria. His tone was confident and focused on disciplined execution, franchise strength, and organic growth as the main engine of value creation.

Pascal Ruhland focused on record profitability, saying Q2 profit was the highest in the group’s history and that the business is supported by resilient fundamentals, a strong balance sheet, and comfortable capital and liquidity buffers. He cited total income of PLN 3.1 billion, NII up about 3% quarter-on-quarter, a 3.47% NIM, reported cost-to-income of 30%, and cost of risk at 37 bps in Q2 and 34 bps in H1. He also said more than PLN 850 million in taxes were paid in Q2, including banking tax, and outlined capital actions including a potential AT1 transaction, a securitization expected to reduce RWAs by around PLN 2 billion, and an internal model change that could cut RWAs in the mid-to-high PLN single-digit billions by end-Q1 2027.

Analysts asked about the decline in the NPL ratio, the impact of the ECJ verdict on consumer loans, corporate loan growth, legal-risk provisions, CET1 movement, corporate spreads, and AT1/MREL capital. Management said the NPL ratio improvement to 3.1% from 3.4% was helped by a commercial real estate reclassification of about PLN 145 million, PLN 130 million of non-performing loan sales, and portfolio growth. On consumer-loan legal risk, management said mBank has not been granting those loans since 2023, wins 90% of concluded cases, and the provisions are insignificant; on capital, they said CET1 declined mainly because business growth increased RWAs by nearly PLN 9 billion, not because of regulatory effects.