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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 Q3 Earnings: A Robust Performance

mBank's financial performance in Q3 2025 was robust, with revenues exceeding PLN 9.4 billion, a 5% increase year-on-year, and net profit reaching PLN 837 million, up 46% year-on-year. Earnings per share (EPS) came in at PLN 7.28, beating estimates of PLN 6.1. The bank's efficiency ratio remained best-in-class, with a normalized cost-to-income ratio of below 30%. The return on tangible equity (ROE) was 16.4%, indicating a strong profitability.

Publication Date: Nov -08

📋 Highlights
  • Revenue Growth:: Q3 revenues hit PLN 9.4 billion, up 5% year-on-year.
  • Efficiency Leadership:: Normalized cost-to-income ratio remained under 30%, best-in-class.
  • Profitability:: Net profit reached PLN 2.5 billion, with a 20% return on tangible equity.
  • Loan Expansion:: Core gross loans grew 11% YoY to PLN 134 billion, including record mortgage sales of PLN 4.6 billion.
  • Risk Cost Reduction:: FX mortgage legal risk costs fell 50% YoY to PLN 1.66 billion (first 3Q25 total).

Revenue Streams

The bank's core gross loans grew by 11% year-on-year, reaching nearly PLN 134 billion, driven by strong mortgage loan sales, which reached a record PLN 4.6 billion, up 24% quarter-on-quarter and 37% year-on-year. Net interest income was down 1.4% due to lower yields on loans and floating rate securities, while fee income held steady, supported by strong payment card-related fees.

Asset Quality and Capital

mBank's cost of risk stood at 61 basis points, below the full-year guidance, and the coverage ratio improved. The bank's loan quality also improved, with a decline in impaired loan portfolio and nonperforming loans ratio. The CET1 ratio is expected to remain relatively stable in Q4, with RWA growth due to business expansion and regulatory changes.

Valuation and Outlook

Given the bank's strong performance, the current valuation appears reasonable. The Price-to-Tangible Book Value (P/TBV) is around 2.23, and the Net Interest Margin (NIM) is expected to remain stable. The bank's guidance for 2025 is positive, with total income expected to be above PLN 12 billion. With the Polish economy expected to grow at 4.2% in 2026, driven by strong consumer spending and low unemployment, mBank is well-positioned to benefit from the favorable macroeconomic environment.

Earnings Guidance

Analysts estimate next year's revenue growth at 4.0%, driven by the bank's excellent performance and business model. The bank's transition plan, which combines business targets with decarbonization targets, is also expected to support long-term growth. As Pascal mentioned, "We're the first bank in Poland with decarbonization targets, validated by the science-based initiative," indicating a strong commitment to sustainability.

3. NewsRoom

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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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Forrester To Honour Recipients Of Its 2025 Technology Awards At Technology & Innovation Summit EMEA

Sep -24

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LVMH: Share transactions disclosure

Sep -09

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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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Growth: 7.1

Quality: 7.3

Yield: 7.5

Momentum: 8.5

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Yield: 6.2

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Yield: 3.1

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Growth: 8.4

Quality: 5.6

Yield: 0.0

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Volatility: 2.7

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mBank

A-Score: 5.2/10

Value: 6.0

Growth: 5.8

Quality: 7.7

Yield: 0.0

Momentum: 8.5

Volatility: 3.3

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A-Score: 5.2/10

Value: 2.9

Growth: 5.8

Quality: 5.0

Yield: 5.0

Momentum: 2.5

Volatility: 10.0

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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

1002.5$

Current Price

1002.5$

Potential

-0.00%

Expected Cash-Flows