Short overview of mBank Group

mBank Group is the fourth-largest financial institution in Poland as measured by total assets. It offers retail, corporate and investment banking as well as other financial services such as leasing, factoring, insurance, financing of commercial real property, brokerage operations, wealth management, corporate finance and advisory in the scope of capital markets. mBank is the only Polish bank, which successfully replicated its Polish business model on foreign markets - in 2007 it started its retail operations in the Czech Republic and Slovakia.

2015 turned out well for the economy, however, the GDP growth was only slightly higher than the 2014 figure, amounting to 3.6% year on year compared with 3.3% in 2014. The change in growth composition and positive developments on the labour market are the key factors contributing to robust macroeconomic environment in 2015. The growth was driven by consumption rather than investments; consumption was based mainly on domestic resources, which reduced growth in import, while growth in export came only slightly below the 2014 figure, which improved the GDP growth statistics owing to a positive contribution to net export growth. Continuing recovery of the Polish economy created favourable conditions for the improvement of borrowers’ financial position and lead to an increase of demand for loans and other banking services.

However, a pressure exerted both by factors affecting the revenue of financial institutions and by unfavourable one-off events faced by the Polish banking sector has made 2015 more challenging than expected for Polish banks. Following interest rate cuts in October 2014, the Monetary Policy Council (RPP) decided to continue the easing and in March 2015 reduced the reference rate by another 50 basis points to the historically low level of 1.5%. Additional burdens such as contribution to the Bank Guarantee Fund (BFG) due to the bancrupcy of Spółdzielczy Bank Rzemiosła i Rolnictwa w Wołominie and contribution to the Borrower Support Fund, combined with the low interest rate environment, meaningfully reduced the banking sector's profitability.

For mBank Group, despite a challenging market environment, 2015 was another good year followed by sound business growth across segments. As a result of growing income, the net profit grew compared to 2014. The Group completed a number of projects which made it better prepared for both market and regulatory challenges in the coming years.

The key highlights of 2015 for mBank Group include:

  • Growth in the net profit of mBank Group by 1.1% compared to 2014 to PLN 1,301.2 million.
  • Growth in revenues by 3.9% year on year, supported by historically highest core income and gains on the sales of BRE Ubezpieczenia TUiR and PZU shares.
  • High-growth dynamics of revenues adversely impacted by the unforeseen one-off costs, such as normal and extra-ordinary contribution to the BFG and contribution to the Borrower Support Fund: cost to income ratio at 50.2%. Excluding abovementioned costs and gain from the sale of BRE Ubezpieczenia TUiR and PZU shares cost to income ratio stood at 49.3% as at the end of December 2015.
  • Sound volume development:
    • Increase in gross loans by 5.2% compared to the previous year, supported by active sales in Retail Banking segment as well as in Corporates and Investments. Excluding reverse repo/buy sell back transactions and the FX effect gross loans increased by 6.3% year on year.
    • Considerable growth in clients’ deposits by 12.0% year on year, due to a growth in deposits of both individual and corporate clients.
  • Retail lending expansion reflected in record-high sale of mortgage and non-mortgage loans – PLN 4.5 billion and PLN 4.9 billion of new loans sold, respectively.
  • As a result of rapid growth of deposits, record-breaking reduction of the loan to deposit ratio to 96.7%.
  • Further improvement in the quality of assets, with a significantly lower cost of risk compared to 2014, at the level of 54 bps.
  • High quality of capital base – capital ratios surpassing regulatory requirements: CET 1 ratio at 14.3%, Total Capital Ratio at 17.3%.
  • Accelerating client acquisition – in 2015, 396 thousand individual and 1,775 corporate clients were acquired.
  • Signing of a strategic agreement with AXA Group on distribution of insurance products through the channels of mBank and a simultaneous sale of BRE Ubezpieczenia.
  • Strenghtening the position as mobile and transactional Bank with the completion of the migration of former Multibank and Private Banking clients onto New mBank platform and further cooperation with strategic partners.


Key financial and business data of mBank Group

2011 2012 2013 2014 2015 YoY
Key Financials (PLN thou.):
Net interest income 2,148,602 2,279,597 2,225,811 2,490,658 2,511,373 0.8%
Net fee & commission income 839,972 786,546 834,738 901,690 897,176 -0.5%
Total income 3,563,510 3,570,774 3,673,524 3,939,168
Total costs (incl. A) -1,722,913 -1,661,331 -1,678,043 -1,770,565 -2,054,246 16.0%
Thereof: One-off
regulatory costs*
- - - - -193,793 -
Loan loss provisions -373,470 -444,635 -477,778 -515,903 -421,222 -18.4%
Profit before income tax 1,467,127 1,464,808 1,517,703 1,652,700 1,617,855 -2.1%
Net profit attributable to
1,134,972 1,197,321 1,206,375 1,286,668 1,301,246 1.1%
Balance Sheet (PLN thou.):

Total assets 98,875,647 102,144,983 104,282,761 117,985,822 123,523,021 4.7%
Total liabilities 90,802,982 92,526,062 94,026,323 106,912,844 111,248,057 4.1%
Total equity 8,072,665 9,618,921 10,256,438 11,072,978 12,274,964 10.9%
Key Indicators:
Cost/Income ratio 48.3% 46.5% 45.7% 44.9% 50.2% -
ROE net 16.4% 14.6% 13.1% 13.1% 11.8% -
NIM 2.5% 2.4% 2.2% 2.3% 2.1% -
NPL ratio # 4.7% 5.2% 6.3% 6.4% 5.7%
Coverage ratio 66.2% 64.1% 47.8% 51.9% 58.9% -
Core Tier 1 / CET 1** 9.6% 13.0% 14.2% 12.2% 14.3% -
CAR / Total Capital Ratio** 15.0% 18.7% 19.4% 14.7% 17.3% -
Employment (FTE, at the end of period) 6,294 6,138 6,073 6,318 6,540 3.5%
Investor & Shareholder Information:
Share capital (PLN thou.) 168,411 168,556 168,696 168,840 168,956 0.1%
Number of shares 42,102,746 42,138,976 42,174,013 42,210,057 42,238,924 0.1%
P/BV 1.3 1.4 2.1 1.9 1.1 -42.1%
Business Data
Retail Banking
No. of customers (thou.) 3,893 4,134 4,368 4,551 4,947 8.7%
Total loans (PLN M) 38,689 37,704 38,308 41,560 46,259 11.3%
Total deposits (PLN M) 26,701 33,234 34,203 39,285 46,117 17.4%
Corporate Banking
No. of customers (thou.) 14 15 16 18 20 11.1%
Total loans (PLN M) 27,890 28,405 29,475 32,841 33,447 1.8%
Total deposits (PLN M) 27,015 24,249 26,753 32,237 34,424 6.8%

* Contribution to the Bank Guarantee Fund of PLN 141.7 million to cover the cost of payments to deposit holders of bankrupt Cooperative Bank in Wołomin and contribution for the Borrowers Support Fund of PLN 52.1 million
# Since Q4/13 a modified methodology of NPL recognition in retail area has been applied (the NPL ratio is calculated in accordance to a more strict client perspective methodology).
**Since the end of March 2014 capital ratios are calculated according to the rules based on the Basel III.


2015 in numbers



RoE net

PLN 4,093


Increase in total loans

excl. FX effect & reverse repo

Increase in total deposits





No. of clients

retail & corporate

No. of employees





No. of mobile application users

Market positioning

More than 1 million

in terms of assets


Business lines – key data

Image shows: RETAIL BANKING - mBank runs its retail operations in Polan, Czech Republic and Slovakia, providing service to individual clients as well as micro-enterprises. 
Many innovations are introduced each year in order to satisfy client's needs.
Profit before tax: PLN 1,060.7 million
No. of branches: 278
No. of clients: 4.9 million
Increase in loans excl. FX effect: 6.3%
Increase in deposits: 17.0%
66% of mBank Group profit

Image shows: CORPORATE AND INVESTMENT BANKING - The aim of commercial operations of the Bank is supporting the development of companies from SME and corporate sector.
Many years of Bank's experience in providing services to this segment lead to a successful cooperation with the customers. 
Profit before tax: PLN 537.4 million
No. of branches: 47
No. of clients: 19.6 thousand
Increase in loans excl. FX effect: 11.2%
Increase in deposits: 17.0%
33% of mBank Group profit

Image shows: FINANCIAL MARKETS - Among the main task of this business line there are: direct sale of financial products, management of assets and liabilities of the Bank, interest rate ris management, depositary services and supervising the operations of mBank's Brokerage House (Dom Maklerski mBanku, mDM).
Profit before tax: PLN 80.2 million
Increased profitability of derivative transactions: 33.6%
Increase in no. of active clients: ~50%
Market share of Treasury bills and bonds: 20.5%


Summary of 2015

  • Strategic alliance with AXA Group
  • Distribution agreement signed with Allegro
  • Launch of mobile payments services - BLIK and NFC
  • Intensified relations with small and medium-sized enterprises; launch of mPlatforma Walutowa (mobile FX Platform)
  • Issue of over PLN 800 million covered bonds by mBank Hipoteczny
  • mBank again among the top banks in Poland, according to the rankings of Forbes and Newsweek
  • Commencement of integration of Dom Maklerski mBanku and mWealth Management within the Group’s structure
  • Launch of mBank Group new website



2015 - Strategic Alliance with AXA Group - Distribution agreement with Allegro - Launch of BLIK and NFC - Launch of mPlatforma Walutowa - Covered bonds issue - Commencement of integration of selected subsidiaries within the Group’s structure - New mBank Group website - 2016



Key projects of mBank Group in 2015

Migration of Multibank clients to mBank

On October 19, 2015 former Multibank and Private Banking clients gained access to mBank’s transactional system, finalising the process of business integration under one, common mBank brand. It was the most complex and complicated operation in the Bank’s history, taking into account the number of systems which were undergoing simultaneous changes. Migration included 630 thousand clients and consisted of data transfer between transactional systems. As a result, clients can now use over 200 new functionalities and improvements. At the same time all products and services held by former Multibank and Private Banking clients were transferred to the new mBank service. They also gained access to the mBank’s mobile application, while the old system and application have been switched off.

Commencement of integration of Dom Maklerski mBanku and mWealth Management within the Group’s structure

IconIn Q4 2015, the management boards of mBank and Dom Maklerski mBanku S.A. and mWealth Management S.A. signed the division plans marking the first stage of the planned integration of the companies within the Group’s structure. Brokerage services that so far have been rendered through Dom Maklerski mBanku and mBank will be carried out via single entity, i.e. mBank, with mWealth Management expected to join the process later on.

The division will ultimately result in integration of the brokerage operations of mBank, Dom Maklerski mBanku and mWealth Management in an expanded brokerage bureau of mBank. By bringing the brokerage operations under one roof, mBank Group will be able to offer an optimum portfolio of brokerage services to all its client groups, both individuals and institutions.

As a result, a one-stop shop will be created offering all clients tailor-made brokerage services matching their individual situation and investment objectives. The client base of mBank Group subsidiaries and its dynamic growth will support the increase in the Group’s brokerage services potential. Following the integration, mBank brokerage bureau will provide the clients with all the solutions available on the brokerage services market - ranging from simple execution of client instructions to investment advisory and portfolio management. All clients will be able to use cutting-edge transactional platforms offering tailor-made features.

When implemented, the target model of rendering brokerage services will enable mBank Group to better use its resources and potential, giving it an even greater competitive advantage in the brokerage services market.

Image shows: seat mBank

One Network Project of mBank

Under its Strategy adopted in 2012, mBank has been implementing the One Network Project to consolidate its sales network and further improve both retail and corporate customer service.

In the cities included in the project, the separate retail and corporate branches are being replaced by advisory competence centres located in office buildings and the so-called “light” branches located in shopping malls.

Light branches are to provide quick and effective service in the basic scope (sale and services regarding core products, i.e. bank accounts, payment cards issued on the spot or cash loans, including cash-desk service and accepting instructions). The idea of advisory centres is to offer thorough, often time-consuming service including a full range of products from retail, corporate and private banking area and products of selected mBank subsidiaries (e.g. mLeasing, mFaktoring and Dom Maklerski mBanku).

In 2015, the decision was made to introduce this new sales model in the 10 largest cities in Poland. Changes will be implemented gradually until the end of 2020. Since the beginning of the project, by the end of 2015, 6 advisory centres and 9 "light" mBank outlets were opened, while in Gdynia and Kielce the transformation process was completed.

In addition, mBank’s network is supported by around 90 mKiosks operated by Aspiro.

Issue of covered bonds by mBank Hipoteczny

mBank Hipoteczny (mBH) is one of three mortgage banks currently active on the Polish market (next to Pekao Bank Hipoteczny and PKO Bank Hipoteczny) and the leader in covered bond issues with a market share of 75.6% at the end of December 2015.

Similarly to 2014, in 2015 mBank Hipoteczny became an even more active player on the debt securities market. mBH placed seven series of covered bonds during the year. The total nominal value of the covered bonds in issue exceeded PLN 1.5 billion. Consequently, mBH successfully achieved its target for 2015.

In 2015, 7 issues of mortgage bonds were carried out:

Volume Currency Date of issue Maturity Tenor (in years) Coupon
200 M PLN 20.02.2015 28.04.2022 7.2 WIBOR 6M + 78pb
20 M EUR 25.02.2015 25.02.2022 7.0 fixed (1.135%)
250 M PLN 15.04.2015 16.10.2023 8.5 WIBOR 6M + 87pb
11 M EUR 24.04.2015 24.04.2025 10.0 fixed (1.285%)
50 M EUR 24.06.2015 24.06.2020 5.0 EURIBOR 3M + 69pb
500 M PLN 17.09.2015 10.09.2020 5.0 WIBOR 3M + 110pb
255 M PLN 02.12.2015 20.09.2021 5.8 WIBOR 3M + 115pb


For more information on covered bond issues by mBank Hipoteczny, see chapter mBank Group funding.

Project ALM (Asset and Liability Management)

At the beginning of 2015, the Bank launched the ALM Project. Its aim is to consolidate the systems of interest rate risk, market risk and liquidity risk, the funds transfer pricing system and the Bank's Treasury system into an integrated ALM System. As a result, the Bank will improve the quality and effectiveness of balance sheet and net interest income management processes. Through works on the implementation of the ALM System, the Bank strives to eliminate redundant systems and processes for collecting and processing data, systems, reporting processes and analytical tools which will translate in the improvement of the Bank's cost-efficiency.

In 2015, the Bank completed the phase of development of a tool for thorough collection and processing of data for the needs of the target ALM System. The project has been implemented by interdisciplinary teams from the Risk, Finance, Treasury and IT areas of the Bank.


Innovations at mBank Group

Image shows: Application for phone

Mobile application

Mobility-based technologies find application in a wide range of business models, while their capabilities are almost revolutionary compared with the time when mobility was still at a nascent stage. Today, it is difficult for many people to imagine life without a smartphone, which became an indispensable tool we use on a daily basis to make our lives easier.

In the past, in order to pay a bill a client had to visit a bank’s branch. After the Internet revolution, such payments could be made without leaving the house. Today, all it takes to make a payment is a few seconds and clicks on a smartphone; clients no longer need to give the 26-digit account number and can make payments anytime and anywhere. This is the reason why freedom, speed, control, convenience and personalisation are what the users of mobile technologies appreciate the most. In line with the forecasts for the development of e-commerce market in Poland, in a few years’ time also the purchase of banking products using mobile technologies will surely become one of the core services offered by banks.

According to a report by PR News, at the end of Q3 2015 the number of active users of mobile banking exceeded 5 million. mBank boasts the greatest number of mobile users, which stood at 1,162,000 in Q3 2015.1 The number of mBank’s clients that have already gone mobile is twice the Polish market average.2


1. Source:
2. According to Finalta Research 2015

All mBank’s applications were downloaded 1,057,480 times, which represents a 44% increase compared with the previous year.

  • The share of client logins in the mobile channel rose by half: in December nearly one in three logins to mBank were from a mobile device.
  • In 2015, the number of mobile channel users surged by almost 45% year on year.
  • The clients’ activity in the mobile channel, as measured by the number of logins per one user, increased nearly by half in twelve months.

Over the last two years, mBank’s mobile application, launched in February 2014, won a large group of new users, and based on a survey of actual needs of the clients, was enriched with a number of new functionalities. Following an enthusiastic reception received by new functionalities such as balance check without login, quick cash loan, P2P transfers or mobile mOkazje and PUSH notifications, mBank decided to pursue further development.

The key new elements of mBank’s application include:

  • New section “Deposits”, which makes the deposit offer available via mBank’s mobile application more attractive by offering products on special terms in the mobile tariff dedicated solely to those who downloaded the application. Now, the application users can use offers which so far had only been available via the Internet Banking channel, such as Offer for You or 3-day Deposit
  • Mobile mTransfer, which allows clients to pay for their purchases on PayU/Allegro platform in only one click in mBank’s application
  • Currency mPlatform, which allows clients to exchange currencies online in the application
  • Multi-person Authorisation of Transactions, which allows for a "double-check" authorisation in the application. This functionality makes it possible to authorise transfers set up on another device
  • BLIK service, which allows clients to quickly pay for their purchases, make ATM withdrawals and pay online via smartphones. For more information about BLIK functionality, please see the “BLIK Service” section
  • Payment of invoices using the QR codes scanning functionality
  • NFC payments for Android system available to Orange subscribers
  • Additional facilities, such as an option to repeat a transfer or answer to a transfer or quick supply of account number
  • Change of authorisation limits on payment cards - the amount or number of limits can be changed monthly or daily
  • mLine in a click, which allows clients to connect with mLine consultants directly from the application, without the need to dial the number manually or log in using one’s client number and telecode

2015 was also an important year for mBank’s website development, which underwent a major overhaul. The new website launched in November was designed in line with the RWD (Responsive Web Design) technology, which provides an optimal viewing and interaction experience across a wide range of devices used to browse it. For more information about mBank’s new website, please see “New website” section.

Each year mBank is awarded numerous distinctions for the quality of services and products offered and wins contests against competitors from both Poland and abroad.

A small sample of what mBank Group managed to achieve with the support of its clients during its 27-year presence on the Polish market is presented below:

  • February 2015 - prestigious Mobile Trends Awards were handed out for the fourth time to the best companies and institutions from the mobile technologies sector. The award committee named the winners in as many as seventeen categories, while three special prizes went to the authors of applications selected by Internet users. mBank won in the following categories: mobile banking and Mobile Trends Awards special prize.
  • July 2015 - every year Forrester Research compiles a ranking of mobile applications designed by European banks (European Mobile Banking Functionality Benchmark). The 2015 edition covered thirteen banks. mBank’s mobile application ranked third, which should be perceived as a considerable distinction, taking into account the scale of the undertaking.
  • September 2015 - at this year’s Great Gala of the Banking Industry organised by Newsweek and Forbes magazines, banks competed neck and neck and the rivalry was exceptionally fierce. mBank won as many as four awards and came second in the Mobile Banking category, just a few points shy of the leader.

For more information on awards granted to mBank Group, see chapter Awards and distinctions.

New website


Since November 29, 2015, mBank's clients have been using a new website. Not only the website appearance has changed, but also its layout, graphics and functionalities. The website is based on the Responsive Web Design technology enabling it to adapt the website layout to the screen of a device displaying the content. The technology makes it easier to surf the internet using such devices as smartphones or tablets, reducing to the minimum the need to resize invisible fragments of text and scroll or pan the displayed image to see the entire website.

Clients expect to be able to access quickly interesting content on a given website, regardless of the device they use to open it. Bearing this in mind, a number of improvements have been introduced, such as a new layout and a fast browser, which suggests a further part of a phrase entered by the user. The information is displayed in an organised manner, starting from the most up-to-date content. Additionally, once the user enters a phrase, for example "cash loan", not only are the offer details displayed but also a link to apply for a cash loan at once.

Changes in the website are noticeable as well when the user starts browsing for outlets, ATMs and deposit machines. It is possible to filter an outlet to check not only its address, but also the scope of services.

A new economic website was also launched. All the necessary data was collected in one place and presented in a clear form of graphs. Investors may save data on funds they find interesting in the "favourites" tab, keeping the information within reach whenever he wishes to review it again.

The website designers also kept in mind the needs of blind users or those with poor eyesight. New websites were adjusted to the needs of this group of clients and designed in line with the Web Content Accessibility Guidelines.

Last but not least, one of the most important elements implemented as part of the project is a new common login site for clients from all segments. Retail clients, corporate clients, Private Banking clients and SMEs may switch between their dedicated transactional systems from the level of one site, which is particularly important after the merger of mBank and Multibank.

mBank StartUP Challenge "Cooperate with the bank and visit Tel Aviv!"

In November 2015, young entrepreneurs were given an opportunity to participate in mBank StartUP Challenge competition organised in cooperation with Business Link Polska. The winners were invited to an acceleration programme in Tel Aviv and were given the possibility of entering into business cooperation with mBank.

mBank's mission in the scope of servicing small and medium-sized enterprises (SME) goes far beyond the area of product service. mBank's aim is to create an "entrepreneur's ecosystem", i.e. an environment where a start-up will not only easily use products it needs but also receive support in the process of managing a business - starting from support in its establishment to advisory services regarding its further development.

To accomplish this mission mBank StartUP Challenge - the acceleration programme - has been organised, which is a unique opportunity to develop a business and find international investors. For a business beginner, such a trip is a great opportunity which may be more helpful than money. Moreover, for the Bank it is an occasion to start cooperating with small entities developing products on the verge of innovation.

In order to take part in the competition, candidates were to present how their products may prove helpful in cooperation with the Bank. The proposed activities should help to increase the number of users of the mobile application, encourage mBank's clients to save or invest or enable the Bank to carry out more effective credit risk assessment. The main criterion for the assessment of concepts presented by the participants was the innovativeness of a proposed solution and the possibilities of its application in business.

Additionally, the competition participants were asked to develop the grounds for a business model and use it to present their ideas for cooperation with mBank.

Out of hundreds of applications, the competition organisers - the University Entrepreneurship Incubators Foundation and mBank - selected the best 5 proposals which were presented on December 15, 2015, during the competition gala, taking place at mBank's headquarters in Warsaw.

The competition finalists were the following companies: KoalaMetrics - an entity analysing data in the area of mobile applications, FriendlyScore – an entity using social media data in credit scoring, - a designer of innovative payment solutions in e-commerce area, iWisher - a designer of a platform combining e-commerce with clients' savings goals, and Oort - an entity operating in the area of Internet of Things and SmartHome solutions.

During the gala, each finalist had three minutes for a pitch talk to briefly present its concept.

The winner - KoalaMetrics was awarded with participation in the acceleration programme in Tel Aviv which offers but is not limited to workshops and coaching and mentoring sessions with the aim to develop and refine its business model, as well as meetings with potential investors.

NFC service in Orange Finanse

The rapidly increasing importance of mobile payments is in line with one of the most substantial trends nowadays - smartphones taking over new areas of our life. It seems that within theImage shows: Application for phone coming months, contactless mobile payments will become a common payment method in Poland. Today, over 60% of Polish consumers are interested in paying at shops using their smartphones, and two thirds expect that in 5 years we will pay by phone at least once a week, according to the Mobile Money 2020 survey carried out by Visa Europe.

Contactless payments with the use of a smartphone are becoming a part of our reality, thanks to an increasing popularity of NFC technology, which makes it possible to use a smartphone as a digital wallet.

Following this trend, in February 2015, Orange Finanse expanded its offer with NFC contactless payments dedicated to Android systems. The process is fully integrated with Orange Finanse mobile application. All the steps such as applying for an NFC card, its activation, card payments or cancellation are carried out from the level of the mobile application; there is no need to install more applications on a smartphone.

From the client's perspective, handling NFC cards is extremely easy; all that he needs to do is instal Orange Finanse mobile application, apply for the card in the application and activate the card through the assignment of PIN. Then, he may pay with the card at shops and other service outlets.

It takes less than 10 minutes to instal an NFC card in the mobile application. The simplicity of installation is crucial - the client is only 7 clicks and 2 screens away from getting the card.

For more information on cooperation with Orange, see chapter Strategic partnerships.

BLIK Service

In February, mBank activated in its mobile application the functionality for paying at traditional and online shops and withdrawing cash from ATMs by means of BLIK service. Thanks to this functionality, it is possible to make a payment just using a smartphone with the Bank's mobile application. BLIK service was activated at the same time by 6 member banks - shareholders of Polski Standard Płatności which operates the BLIK system. The innovativeness of mBank's solution was awarded at the annual Polish Card Gala in the Best Cashless Product of 2015 category. For more information on awards granted to mBank Group, see chapter Distinctions and awards.



Strategic partnerships

Strategic cooperation with AXA Group

In March 2015, the sale of BRE Ubezpieczenia Towarzystwo Ubezpieczeń i Reasekuracji (BRE Ubezpieczenia TUiR) was completed. On March 30, mBank Group and AXA Group signed agreements accompanying the sale and distribution agreements, governing long-term cooperation between mBank Group and AXA Group on the distribution of insurance products.

The total consideration of mBank Group from the sale of shares in its insurance subsidiary and from the distribution agreements signed with AXA Group members amounted to PLN 579.5 million, while the one-off impact of the transaction on the pre-tax income of mBank Group recognised in Q1 2015 amounted to PLN 194.3 million.

As part of the transaction there were signed several agreements to govern the long-term cooperation between the Bank and AXA Group companies concerning distribution of life and non-life insurance products. The term of the distribution agreements will be no less than 10 years.

The cooperation with AXA Group is being reflected in the expansion of the product mix and improvement in the quality of services for mBank Group’s clients, who have access to the most innovative insurance products offered via both electronic and mobile platforms, as well as traditional branches. For the Bank, the strategic alliance with AXA is yet another step towards the full utilization of the potential of the mBank’s Internet and mobile platforms. In July mBank and AXA Group launched their first joint advertising campaign, which aims at presenting how the cooperation of two experienced business partners translates into convenience and security of clients buying insurance policies.


Strategic partnership with Orange

The joint-venture of mBank and Orange, Poland’s leading landline telephone, mobile, Internet and data transfer provider, called Orange Finanse, was launched on October 2, 2014.

Thanks to its innovative offer, after only a year upon its launch, Orange Finanse became mBank’s key acquisition channel. By the end of 2015, more than 250,000 accounts were opened with Orange Finanse, including almost 210,000 in 2015 alone.

H1 2015 was marked by new implementations and changes in the offer of Orange Finanse, whose clients are currently offered personal accounts, loans (Express Cash Loan, Renewable Loan), debit cards, credit cards, NFC payments by mobile phones, savings accounts, 3, 6 and 12-month deposits, discount programmes covering approx. 3 thousand partner outlets (stores, service providers, hotels, restaurants) and additional benefits available to the clients of Orange mobile network. For more information on NFC payments method, see chapter Innovations at mBank Group.

H2 2015 was a period of mobile finance development with a number of improvements being introduced, such as adding Windows Phone to the list of operating systems compatible with the mobile application of Orange Finanse or enabling the payment of invoices using QR codes, which takes only seconds to complete and requires no transfer data to be entered manually, and starting the sale of cash loans in Orange stores. It was also a period when a new joint offer for Orange clients was presented, promoting active users of Orange Finanse, who can have their monthly phone bills reduced by PLN 25.

In 2015, specific initiatives were launched and enhanced products were offered to micro-enterprises as part of the offer of Orange Finanse, such as Account for Companies with an option to receive a limit of up to PLN 10 thousand, debit cards, savings account and Auxiliary Accounts.

In October 2015, Orange Finanse brand was ranked among the top global players participating in the contest for the best banking projects organised by Efma and came second in the Best New Product and Service category. Efma is an organisation associating more than 3.3 thousand financial institutions from over 130 countries, including 80% of Europe’s largest retail financial institutions. The purpose of the competition is to award the most interesting and innovative projects of financial institutions worldwide, addressed to retail clients. In 2015, 211 financial institutions from 59 countries entered the competition with 500 innovations. For more information on awards won by mBank Group, see chapter Awards and distinctions.


mBank’s cooperation with Allegro


In Q1 2015, mBank signed a long-term agreement on strategic cooperation with Poland’s on-line auction market leader, Allegro. The cooperation will consist in offering banking products to Allegro users. Since the beginning of cooperation the volume of sales via Allegro amounted to PLN 60.2 million, while the number of clients stood at 29.2 thousand as at December 2015.

mBank products, primarily current accounts or cash loans, are offered to individuals across different parts of the service in the form of banners with contextual ads, mailings and newsletters allowing for an enhance of the cross-sell of loans.

The cooperation with Allegro, the largest on-line auction service in Poland, will provide mBank with access to an additional group of clients - 13 million users concluding about 160 million transactions per year.


Awards and Distinctions

Product offer and quality of customer service
The Global Finance magazine named mBank the best bank in Poland and ranked it among “World’s Best Corporate/Institutional Digital Banks”. mPlatforma Walutowa (FX mPlatform) was named the best transaction platform for currency exchange dedicated to corporate banking clients in the CEE region (Best Online Treasury Services in CEE).
In an international contest organised by Efma (organization formed by bankers and insurers, which specialises in financial marketing and distribution) and Accenture for the most innovative banking projects, mBank was once again among the best banks in the world with:
- marketing banking platform (a tool enabling management of multichannel direct marketing campaigns leading to their better personalization and automation and integrating all the data about the clients) the best in the "Digital Marketing" category
- 3rd place in „Global Innovator” category Additionally, Orange Finanse climbed the podium having won second place in the category ”Best new product or service
In the 6th edition of the Golden Banker ranking organised by, a financial portal, and PayU, leader of Internet payments in Poland, mBank triumphed for the fifth time, winning awards for the best mobile banking, the best personal account and account for entrepreneurs and winning therefore a major award - the Golden Bank statuette.
mBank was once again among the winners and received the Service Quality Star award in the "Banks" category in the Service Quality programme. Brands with the highest Customer Satisfaction Index (CSI) that stand out against their competitors were selected on the basis of assessments and opinions of consumers published on the website:
In the 4th edition of the “Quality you can bank on” ranking organised by TNS Polska in cooperation with Dziennik Gazeta Prawna daily mBank came second in terms of the quality of services offered in its branches. As part of this year’s edition, the auditors of TNS Polska visited branches of 19 banks offering personal accounts.
Experts of the consultancy and research institution Celent Research, appreciated mBank's insurance sales model. For the second consecutive time mBank was among the winners of the international Model Bank Awards competition. mBank won in the "Innovation and Emerging Technologies” category.
At this year’s Banking Gala organised by Newsweek and Forbes magazines, mBank was recognized with the largest number of awards among all financial institutions listed in the ranking. In the 14th edition of the “Newsweek’s Friendly Bank” contest mBank was ranked:
- second in the "On-line Banks" category
- second in the “Mobile Banking" category
- third in the “Bank for Kowalski” category - in which the quality of service is assessed along with the engagement of advisors in acquiring and retaining clients.
For the seventh time Private Banking of mBank was ranked the best in Poland by Euromoney Magazine, a British financial magazine. Every year, Euromoney Magazine conducts a survey among financial institutions offering specialist banking services to affluent clients. In Poland, mWealth Management has been the winner of this ranking every year since 2007.
Marketing activities and mBank’s loyalty programme
Icon The design of the mBank Internet marketing platform was recognised as the most innovative technology supporting business development. It won the Financial Cool Business Award competition, which is part of an industrial event Gartner Symposium ITxpo 2015 in Barcelona. The mobile banking application was also ranked high and made it to the finals in its category.
Icon mBank’s loyalty programme mOkazje won in the category “The best loyalty activities in services” in the first edition of the Loyalty Awards, a contest of the best loyalty programmes in Poland in 2014.
Brokerage activities
Icon mBank’s team of brokerage analysts (mDM) was unrivalled in 2015 in forecasting the key macroeconomic and market indicators among participants of the forecasting contest organised by Parkiet daily. Based on the opinions of investors who evaluate the research departments of brokerage houses, mDM was ranked first.
Icon Dom Maklerski mBanku won the title of the best broker/investment bank in Central and Eastern Europe in the first edition of the Annual CEE Capital Markets Awards. Moreover, mBank came second in a ranking of “Parkiet” compiled based on readers’ votes on 16 largest investments companies maintaining at least 10 thousand investment accounts.
Other awards
Icon mBank won the prestigious „The Best of the Best” award for the best 2014 annual report, in „The Best Annual Report” contest for listed companies organised by the Tax and Accounting Institute.
Icon mBank triumphed in the innovation category of the first edition of the Banking Stars competition organised by Dziennik Gazeta Prawna and PwC. mBank entered three projects in the competition: mobile banking, “light” branches located in shopping malls and cash loan available on line with credit decision in 30 seconds.
Icon For the second time in a row mBank won the title of the most innovative bank in the Leaders of Banking & Insurance World competition. The jury appreciated the changes introduced in the area of mobile banking and the new, redesigned application offering solutions such as the 30-second loan, i.e. the fastest loan on the market, or mOkazje discount programme with the possibility of geolocation of available offers, made banking simpler and more attuned to the clients’ lifestyles.
Icon mBank Hipoteczny and mBank climbed the podium having won second and third place respectively in the ranking of banks financing real estate developers organised by the Polish Union of Developers.



Market share of mBank Group segments

At the end of 2015, mBank was among the largest Polish banks across all relevant market segments.

Most of the Group subsidiaries also rank high in their respective market segments. The table below presents the market share and the position of mBank and of selected subsidiaries at the end of 2015 compared to 2014:

Business category Market position in 2015* Market Share
2014 2015
Corporate Banking
Corporate loans 6.3% 6.3%
Corporate deposits 8.8% 9.8%
Leasing 2 7.4% 7.6%
Factoring 7 7.9% 7.8%
Retail Banking in Poland
Total loans 6.3% 6.5%
Of which mortgage loans 7.4% 7.7%
Non-mortgage loans 4.6% 4.7%
Deposits 5.3% 5.7%
Retail Banking in the Czech Republic
Total loans 1.2% 1.4%
Of which mortgage loans 1.6% 1.8%
Non-mortgage loans 0.5% 0.6%
Deposits 1.3% 1.4%
Retail Banking in Slovakia
Total loans 0.7% 0.8%
Of which mortgage loans 0.8% 1.0%
Non-mortgage loans 0.3% 0.4%
Deposits 1.5% 1.4%
Investment Banking
Financial markets
Treasury bills and bonds 14.8% 12.8%
IRS/FRA 27.3% 15.4%
FX spot and forward 10.9% 12.1%
Non-Treasury securities
Short-term debt securities 7 8.1% 6.8%
Corporate bonds 4 12.9% 12.4%
Bank debt securities** 1 34.3% 36.4%
Equities trading 9 3.9% 5.0%
Futures 2 18.0% 16.1%
Options 3 17.9% 12.8%

Source: Own calculations based on data from mBank, NBP, WSE, CNB, NBS, Fitch Polska, Polish Factors Association, Polish Leasing Association, press reports
* where determinable
** excluding “road bonds” issued by Bank Gospodarstwa Krajowego (BGK)