This report analyses the performance of mBank for the 2Q2019. You will find all the necessary details regarding volume growth, market share, margin and asset quality development in the Bank.
The key highlights are:
Revenues increased 9.37% yoy to PLN 1,329 mil in the second quarter of 2019. Interest income formed 75.1% of total revenues with the net interest margin increasing 0.13 pp to 2.63% of total assets. Fees added a further 17.0% to total revenue generated in 2Q2019, down from an average of 19.4% as seen in the previous two years.
Operating costs grew by 5.6% yoy to PLN 537 mil, so cost to income ratio reached 40.4%, down by 9.96% compared to the previous two years. Staff accounted for 47.4% of total operating expenditures. At the end of second quarter of 2019, mBank operated a network of 371 branches and 6,677 employees.
Loans and deposits grew by 2.76% and 2.5% qoq respectively, so loan to deposit ratio reached 91.0% at the end of 2Q2019. That’s down from 91.6% the previous year. Equity reached 10.3% of assets and capital adequacy ratio amounted to 19.7% at the end of the second quarter of 2019.
NPLs were 4.79% of total loans at the end of the quarter. Provisions covered 65.0% of non-performing loans
mBank stock traded at PLN 426 per share at the end of second quarter of 2019 implying a market capitalization of USD 4,770 mil. This put stock at a 12-month trailing price to earnings of 4.08x and price to book value of 1.15x as of the end of 2Q2019.