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1. Company Snapshot

1.a. Company Description

mBank S.A. provides various banking and financial services in Poland, the Czech Republic, Slovakia, and internationally.It offers banking services, such as personal, savings, currency, investment, and business accounts, as well as various deposits; bill and credit cards; cash, car, revolving, and corporate loans, as well as mortgages; pension, insurance, stock exchange products; and transaction and mobile banking services.The company also provides wealth management services, including asset management; investment advisory; investment funds; fund portfolios; and succession services.


In addition, it offers currency exchange transaction, currency deposit, and forex forward services, as well as debt securities, such as government and non-government bonds, and Eurobonds.Further, the company provides factoring, leasing, investment credit, invoicing and accounting, brokerage, and currency handling services.It operates in 322 branches.


The company was formerly known as BRE Bank S.A. and changed its name to mBank S.A. in November 2013.mBank S.A. was founded in 1986 and is headquartered in Warsaw, Poland.mBank S.A. is a subsidiary of Commerzbank AG.

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1.b. Last Insights on MBK

mBank S.A.'s recent performance was positively driven by robust quarterly earnings, fueled by a significant increase in net interest income. The bank's strategic focus on digital transformation and innovation has led to the introduction of new products, enhancing customer engagement. Furthermore, mBank's efforts to optimize its operations and improve efficiency have yielded positive results. A recent rating upgrade by Fitch Ratings, citing the bank's solid capitalization, has also contributed to the positive momentum. Additionally, the bank's commitment to shareholder value creation through a share buyback program has been well-received by investors.

1.c. Company Highlights

2. mBank's 2025 Earnings: A Strong Year with Record Profits

mBank reported a robust financial performance for 2025, with a net profit of PLN 3.5 billion, the highest in the bank's history. Total revenue reached a record PLN 12.4 billion, growing 12% year-over-year, driven by higher net interest income despite interest rate cuts during the year. Earnings per share (EPS) came in at PLN 7.28, beating analyst estimates of PLN 6.1. The bank's net interest margin (NIM) stood at 3.74% in Q4, down from 3.97% in the previous quarter, reflecting the impact of rate cuts.

Publication Date: Feb -15

📋 Highlights
  • Record Net Profit: Achieved PLN 3.5 billion in 2025, a historic high for mBank.
  • Loan and Deposit Growth: Loan portfolio grew 10% and deposits increased 14%, outpacing market trends.
  • Capital Strengthening: Own funds rose 19% to over PLN 20 billion, with Tier 1 ratio exceeding regulatory requirements by 4.3pp.
  • Reduced Legal Risk Costs: Swiss franc portfolio legal costs fell to PLN 2 billion, 50% lower than 2024.
  • Mortgage Lending Surge: Mortgage sales hit PLN 14.7 billion, up 38% YoY, with growth in all three markets.

Business Growth and Market Share Gain

The loan portfolio expanded significantly, mainly due to strong mortgage loan sales, while deposits increased by 14% year-over-year, supported by a stable inflow to transactional accounts. As a result, mBank gained market share, with loans and deposits growing at a double-digit rate of 10% and 14%, respectively. The bank's focus on mortgage lending and corporate financing in growth segments yielded strong results, with mortgage loan sales up 38% year-over-year to PLN 14.7 billion.

Capital Position and Risk Management

mBank's capital position remains strong, with a Tier 1 ratio exceeding the minimum regulatory requirement by 4.3 percentage points. The bank's own funds increased by 19% year-over-year, reaching over PLN 20 billion. The cost of legal risk related to the Swiss franc portfolio decreased significantly, to PLN 2 billion, less than half of the amount booked in 2024. As Cezary Kocik, CEO, noted, "We delivered a very strong business growth in line with our strategic target. Our financial performance was outstanding with record high revenues and profit."

Outlook and Valuation

For 2026, mBank expects a slight reduction in total revenues due to a lower interest rate environment, but anticipates offsetting this impact through volume gains. The bank aims to expand its market share, with business volumes expected to outperform the competition. Given the bank's strong financial performance, its current valuation multiples appear reasonable, with a Price-to-Tangible Book Value (P/TBV) ratio of approximately 2.01, and a Dividend Yield of 0%. Analysts estimate revenue growth at 4.6% for the next year. With an ROE of 17.74%, mBank is well-positioned to deliver sustained business growth.

3. NewsRoom

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Commerzbank posts record 2025 operating profit on strong revenue growth

Feb -11

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mBank SA (STU:BRU) Full Year 2025 Earnings Call Highlights: Record Profits and Strategic Growth

Feb -10

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Poland Buy Now Pay Later Business Report 2025: A $2.8 Billion Market by 2030 Featuring Twisto, Klarna, PayPo, Santander, Allegro, mBank, BNP Paribas, ING Bank Slaski, Alior Bank, and Revolut

Dec -01

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3 European Stocks Estimated To Be Up To 42.9% Below Intrinsic Value

Nov -17

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mBank presents Transition Plan

Nov -03

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Aduna, Deutsche Telekom, mBank and Vonage Join Forces at World Banking Forum to Showcase the Future of Banking Security

Oct -30

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mBank and PGGM enter into PLN 3.8 billion credit risk sharing transaction backed by financing to the renewable energy sector

Oct -22

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mBank sets new standards in Europe

Oct -14

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.00%)

6. Segments

Banking and Related Activities

Expected Growth: 1.0%

mBank S.A.'s 1.0% growth in Banking and Related Activities is driven by increasing demand for digital banking services, strategic partnerships, and cost optimization initiatives. Additionally, the bank's focus on SME lending and mortgage financing contributes to its growth, along with a stable economic environment in Poland.

7. Detailed Products

Personal Accounts

mBank S.A. offers personal accounts for individuals, providing easy access to manage finances, pay bills, and make transactions.

Credit Cards

mBank S.A. offers credit cards with various benefits, such as cashback, rewards, and travel insurance.

Loans

mBank S.A. provides personal loans, mortgage loans, and car loans with competitive interest rates and flexible repayment terms.

Investment Products

mBank S.A. offers investment products, such as mutual funds, stocks, and bonds, to help customers grow their wealth.

Business Banking

mBank S.A. provides business banking services, including accounts, loans, and cash management solutions, for small and medium-sized enterprises.

Corporate Banking

mBank S.A. offers corporate banking services, including cash management, trade finance, and risk management solutions, for large corporations.

Private Banking

mBank S.A. provides private banking services, including wealth management, investment advice, and tailored financial solutions, for high net worth individuals.

8. mBank S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

mBank S.A. operates in a highly competitive market, but the threat of substitutes is mitigated by the complexity of banking services and the loyalty of customers to their banks.

Bargaining Power Of Customers

mBank S.A. has a large customer base, but customers have significant bargaining power due to the ease of switching banks and the availability of alternative financial services.

Bargaining Power Of Suppliers

mBank S.A. has a diversified supplier base, and suppliers have limited bargaining power due to the bank's large scale of operations.

Threat Of New Entrants

The banking industry has significant barriers to entry, including regulatory requirements and capital requirements, which limits the threat of new entrants.

Intensity Of Rivalry

mBank S.A. operates in a highly competitive market with many established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 54.97%
Debt Cost 9.84%
Equity Weight 45.03%
Equity Cost 9.84%
WACC 9.84%
Leverage 122.07%

11. Quality Control: mBank S.A. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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mBank

A-Score: 5.2/10

Value: 5.8

Growth: 5.6

Quality: 6.4

Yield: 0.0

Momentum: 9.5

Volatility: 4.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1052.0$

Current Price

1052$

Potential

-0.00%

Expected Cash-Flows