mBank (MBK) investor relations material

Executive summary

• Achieved record financial results in 2025, with net profit of PLN 3.544 billion and profit before tax exceeding PLN 5 billion, driven by strong core operations, business growth, and market share gains in loans and deposits.

• Double-digit growth in both loans (up to 11.2% YoY) and deposits (up to 15.9% YoY), outpacing the market and strengthening position in retail and corporate segments.

• Significant progress in reducing legal risk related to Swiss franc mortgage portfolio, with provisions halved, settlements up 31%, and legal risk costs halved to PLN 2 billion.

• Continued digital innovation, including rollout of Digital Mortgage and launch of Smart Payment Ring with health tracking.

• Q4 2025 net profit reached PLN 1,041.5 million, up from Q3, despite a sequential decline in total income.

Financial highlights

• Total income reached PLN 12.5 billion, up nearly 12% YoY, with net interest income rising 4.5% and net fee income up 12%.

• Net profit for 2025 was PLN 3,544 million, a 58% increase YoY, with return on equity at 17.9% and return on tangible equity at 20.8%.

• Cost to income ratio at 31%, well below the 35% strategic threshold, though up from 28.2% in 2024.

• Net interest margin declined to 4.05% due to lower loan yields and central bank rates.

• Operating costs increased 13% YoY, mainly from higher personnel, IT, and marketing expenses.

Outlook and guidance

• 2026 expected to see stable performance with slight revenue reduction due to lower interest rates, but fee income to remain resilient.

• Cost to income ratio to stay below 35%, with cost growth driven by personnel, strategic investments, and higher regulatory contributions.

• FX-related legal risk costs anticipated to further decline and become immaterial.

• Focus remains on mortgage lending, corporate financing, and business volumes outpacing the market.