Half Year 2024 mBank SA Earnings Call Transcript
Key Points
- mBank SA (FRA:BRU) reported a strong net profit of PLN 422 million for Q2 2024, marking the highest net operating result in the bank's history when excluding certain impacts.
- The bank's net interest income (NII) adjusted for credit holidays grew by 3.5%, supported by both loans and deposits.
- mBank SA (FRA:BRU) achieved an extraordinary cost/income ratio of 27%, well below its long-term strategic target of below 40%.
- The bank's Tier 1 and total capital ratios are at comfortable levels, with buffers above KNF minimum requirements exceeding 4%.
- The bank's core business demonstrated strong performance with an ROE of 40% and a gross profit of PLN 2.7 billion, indicating resilience against FX mortgage-related burdens.
- mBank SA (FRA:BRU) faced high legal costs related to FX mortgage loans, impacting its financial results.
- The bank's decision not to pay dividends in 2024 aims to strengthen its equity base, reflecting challenges in capital management.
- The cost of legal risk related to loans indexed to foreign currencies reached PLN 1.03 billion in Q2 2024, indicating ongoing financial strain.
- The bank's cost of risk increased in Q2, particularly in the Corporate & Investment Banking segment, suggesting potential credit quality concerns.
- The Swiss franc mortgage portfolio remains a significant issue, with 74% of active contracts currently in court, posing ongoing legal and financial challenges.
Good afternoon, ladies and gentlemen. Welcome to our conference where we will present the results of mBank Group in the second quarter of 2024. The speakers today are Mr. Cezary Kocik, acting CEO for the first time in this role; Mr. Pascal Ruhland, Chief Financial Officer; and Mr. Marek Lusztyn, Chief Risk Officer; and Mr. Marcin Mazurek, Chief Economist.
Cezary, over to you.
Good afternoon. I would like to start from a small introduction and some -- my thoughts about the future of mBank. And after that, I will just, of course, ask Marek and Pascal to develop that in a more detailed way and give you all the figures. So that some few initial comments regarding our strategy. So the current strategy IS up to 2025.
So just after holidays, we will start develop a new strategy, what we are going to finish during the next year. And that, we have started our preparation to
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