mBank recorded PLN 26.56 million of consolidated net profit attributable to shareholders of the parent company in Q3 2021 against PLN 100.61 million of profit a year earlier, the bank said in a report.
Net interest income amounted to PLN 1,004.85 million compared to PLN 960.3 million a year earlier. Net fee and commission income amounted to PLN 479.44 million compared with PLN 373.2 million a year earlier.
Gross profit generated by mBank Group in the third quarter of 2021 amounted to PLN 101.4 million and was 57.5% lower than in the second quarter of 2021. The net profit attributable to mBank’s shareholders was PLN 26.6 million. In the first quarter of 2021, both income and costs increased compared to the previous quarter. At the same time, the net profit of the main business (understood as mBank Group without the results of the FX Mortgage Loans segment) amounted to PLN 471.2 million and increased by 24.0% compared to the second quarter. quarter of 2021, according to the report.
The bank announced that the main factors determining the group’s result in Q3 2021 were: higher income at the level of PLN 1,509 million, i.e. + 4.6% compared to the previous quarter, thanks to higher net interest income and fee income and commission; higher operating costs (including depreciation) compared to the previous quarter at the level of PLN 616.5 million, caused by an increase in personnel costs; decrease in risk costs (the sum of impairment losses on financial assets not measured at fair value through profit or loss and gains or losses on loans and advances designated as measured at fair value through profit or loss) to PLN 195.7 million, i.e. 66 basis points in compared to 80 basis points a quarter earlier; legal risk costs related to foreign currency loans, created in the third quarter of 2021, amounted to PLN 436.8 million compared to PLN 248.5 million in the second quarter of 2021; higher tax on the group’s balance sheet items compared to Q2 in the amount of PLN 158.6 million; continuation of organic growth and business expansion, manifested in: increasing the individual customer base to 5,480.4 thousand. (+16.1 thousand clients compared to the end of June 2021), an increase in the number of corporate clients to 30,916 clients (+499 clients compared to the end of June 2021).
Gross ROE amounted to 2.4% in Q3 as compared to 5.7% in Q2 this year, and ROE net amounted to 0.6% as compared to 2.6% in Q2 this year.
The result on impairment or reversal of impairment on financial assets amounted to PLN 197.26 million in Q3 compared to PLN 256.04 million a year earlier.
The costs of legal risk related to foreign currency loans amounted to PLN 436.82 million in Q3 compared to PLN 186.85 million a year earlier.
General administrative expenses amounted to PLN 509.46 million in Q3 compared to PLN 458.45 million a year earlier.
The bank’s total assets amounted to PLN 208.15 billion at the end of Q3 2021 compared to PLN 178.87 billion at the end of 2020.
In Q1-Q3 2021, the bank had PLN 452.36 million of consolidated net profit attributable to shareholders of the parent company, compared to PLN 278.51 million of profit a year earlier.
On a standalone basis, the net profit in Q1-Q3 2021 amounted to PLN 429.91 million compared to PLN 263.63 million profit a year earlier.
The total capital ratio at the end of September 2021 was 17.5%, and the Common Equity Tier I ratio was 15.2% at the end of September.
mBank is one of the leading universal commercial banks in Poland. The strategic shareholder of mBank is the German Commerzbank. The bank was listed on the WSE in 1992. The bank’s total assets amounted to PLN 180.14 billion at the end of 2020.
Source: mBank and ISBnews
