mBank S.A.

Q2 net profit was PLN 1.1 billion, the highest quarterly profit in the group’s history; return on tangible equity was almost 22% and ROE was around 18%. Total income increased to PLN 3.1 billion. Net interest margin was 3.47%, and NII rose around 3% quarter on quarter. For the first half, net profit was up by more than 20% year on year, total income was PLN 6.2 billion and broadly unchanged, and impairment losses and fair value changes on loans were PLN 240 million, down 19% year on year. Gross loans increased by nearly 13% year on year and 6% quarter on quarter; deposits reached PLN 248 billion, up 21% year on year and almost 5% quarter on quarter. The cost of risk was 37 basis points in Q2 and 34 basis points in H1. Management now expects 2026 revenues to exceed 2025 levels, net interest margin to be broadly stable around 3.5% (and slightly above 3.5% in Q3 and Q4), cost-to-income to remain well below 35%, Swiss franc legal risk to stay insignificant, and full-year cost of risk to be around 55 basis points.

Cezary Kocik said the key message was that mBank’s strategy is working: the bank is gaining momentum, building scale, and strengthening its position across retail and corporate banking. He emphasized market share gains in loans and deposits, mortgage market share rising to 9.1%, and progress toward the 2030 ambition of at least 10% share in key product categories. His tone was upbeat and focused on execution, resilience, and long-term franchise strength, while also reaffirming the intention to pay out 30% of 2026 net profit as dividend.

Pascal Ruhland highlighted record quarterly profitability, resilient revenues, and strong operating leverage from digital processes. He noted Q2 total income of PLN 3.1 billion, NII growth of around 3% quarter on quarter, a 3.47% net interest margin, 30% reported cost-to-income and below 33% normalized, and a Q2 cost of risk of 37 basis points. He also pointed to strong capital, the EUR 750 million green senior non-preferred bond, a planned AT1 transaction of about EUR 200 million to EUR 300 million, a securitization expected to reduce RWAs by around PLN 2 billion, and a model-scope change that could cut RWAs by a mid-to-high PLN single-digit billion amount by end-Q1 2027.

Analysts focused on the NPL ratio decline, the impact of the ECJ verdict on consumer loans, corporate loan growth, CET1 movement, spreads, and capital actions. Management said the NPL ratio improvement to 3.1% was helped by a corporate reclassification of about PLN 145 million and the sale of PLN 130 million of non-performing exposures. On consumer-loan legal risk, management said the provisions were insignificant and that mBank stopped granting those loans in 2023; on spreads, they said lending spreads have compressed and may be bottoming out. They also said the CET1 decline was mainly business-driven from higher RWAs, not regulatory effects, and that no further RWA inflation is currently expected beyond the potential model-change benefit in 2027.