Investor Presentation - Q2 2021
New segmentation to show genuine performance of core business
Summary of financial results for mBank's core activity and run-off portfolio in H1 2021
PLN million
Core Business
Non-core¹
mBank Group
Net interest income
1,843.5
65.0
Net fee, trading and other income
1,107.0
-33.8
Total income
2,950.4
31.1
Total costs
-1,235.8
-9.1
Loan loss provisions and fair value change²
-403.6
10.6
1,908.4
1,073.1
2,981.6
-1,244.9
-393.1
Costs of legal risk related to FX loans
0.0
-314.8
-314.8
Operating profit
1,311.0
-282.2
1,028.8
Taxes on the Group balance sheet items
-258.3
-27.6
-286.0
Profit before income tax
1,052.6
-309.8
742.8
Net profit
735.6
-309.8
425.8
185,136
13,335
198,471
2.16%
2.07%
41.9%
41.8%
0.82%
10.7%
0.83%
0.70%
5.1%
0.44%
Total assets
Net interest margin
Cost/Income ratio
Cost of risk
Return on equity (ROE)
Separation of FX mortgage loan portfolio
■ In order to present the genuine and
undistorted performance of mBank Group,
the new segmentation was introduced. The
non-core part, comprising of FX mortgage
loans, was separated from the total business.
■ Non-core assets were defined as all residen-
tial mortgage loans granted to individual
customers in Poland that at any point in
time were in another currency than PLN. In
addition to the FX mortgage loan portfolio,
associated provisions for legal risk arising
from these contracts are also allocated to
the segment.
The capital allocated to the non-core unit
amounted to PLN 2.9 B as of 30.06.2021.
It is calculated primarily based on:
risk weight of the portfolio under AIRB method;
individual FX ML add-on imposed on mBank
Group (actual or expected level);
Provisions for legal risk are currently divided into:
■ PLN 1,468.5 M reflected through a deduction
from gross assets;
■ PLN 220.5 M included in the bank's liabilities;
Return on assets (ROA)
1 Equivalent of "FX Mortgage Loans segment" in the financial statement
2 Sum of 'Impairment on financial assets not measured at fair value through profit or loss' and 'Gains or losses on non-trading financial assets mandatorily at fair value through profit or loss' related to loans
Investor Presentation - Q2 2021
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