Information for investors
The table below presents the key share price data for mBank.
mBank shareholders and share price on the WSE
[G4-7] Commerzbank AG has been the strategic shareholder of mBank since 1994. The stake of Commerzbank has been increasing gradually, from 21.0% in 1995 to 50.0% in 2000 and 72.2% in 2003. Starting from 2005, Commerzbank’s stake has declined slightly due to the implementation of the managerial options programme at the Bank.
As at the end of 2016, Commerzbank AG held 69.4% of shares and votes at the General Meeting. The remaining 30.6% of mBank shares in free float are held mainly by financial investors (Polish pension funds, Polish and foreign investment funds). The only investor who exceeds the threshold of 5% of the total number of votes at the General Meeting is Nationale Nederlanden Otwarty Fundusz Emerytalny (Nationale Nederlanden OFE). According to Bloomberg, Nationale Nederlanden held 5.05% of the total number of shares and votes at the General Meeting. An important shareholder is also Otwarty Fundusz Emerytalny Aviva BZ WBK, with ca. 4.9 % stake.
Performance of mBank shares in 2016
Key characteristics of mBank shares:
- nominal value per share: PLN 4.00;
- registered share capital: PLN 169,121 thousand, paid-up in full;
- mBank shares have been listed on the Warsaw Stock Exchange (WSE) since 1992;
- mBank shares are part of the following WSE indices: WIG, WIG-Poland, WIG20, WIG30 and WIG- Banks; the shares are also included in derivative indices based on WIG20.
In 2016 the total number of mBank shares increased by 41,203 shares issued as part of an incentive programme. Consequently, the registered share capital increased by PLN 164.8 thousand.
In 2016, mBank’s stock prices were subject to considerable fluctuations and should be analysed in the context of the situation on the Warsaw Stock Exchange and stock market performance of other banks.
The year 2016 was a turbulent period for stock exchange investors. The developments in Poland and external factors affected the situation on the Warsaw Stock Exchange. As regards the former, investors focused on the discussions about the future of open-end pension funds, Standard & Poor's (S&P) downgrade of Poland's credit rating and the concerns other credit rating agencies could follow suit, the major review of the optimistic forecasts of economic growth made at the beginning of 2016, changes in the composition of management boards and supervisory boards of a number of companies controlled by the State Treasury, as well as speculations over the financing from the Polish energy companies to rescue the coal mining industry. This was further compounded by the concerns about the consequences of Brexit, presidential elections in the USA, the prospect of interest rates increase by the Federal Reserve and the problems of Italian banks and concerns over whether they would receive state aid. The share prices of banks in Poland were also impacted by the proposals of politicians relating to foreign currency housing loans, concerns about the effects of the tax on certain financial institutions introduced in February 2016 and consolidation processes in the banking sector, in particular the finalisation of one of the biggest financial transactions in the recent years – the purchase of a 32.8% stake in Pekao S.A. by PZU and the Polish Development Fund (PFR) from Unicredit.
Investment decisions were made in the atmosphere of uncertainty, while investors’ sentiment was changing dramatically amid different information. The massive stock-market sell-off following the surprising results of the referendum held in the United Kingdom and nervous reactions of investors to the FX housing loans bills presented by the Chancellery of the President of the Republic of Poland are only some of the examples to illustrate this. In 2016, stock market trading volumes decreased by 10% year on year. The uncertainty resulted also in a small number of initial public offerings on the WSE. In 2016, 19 companies debuted on the Main Market (including those which moved there from the NewConnect market), however, as some companies decided to leave the Warsaw Stock Exchange, the number of Warsaw-listed companies did not increase year on year for the first time in the history of the WSE.
WIG increased by 11.3% in 2016. The year 2016 was a very good time for the shareholders of medium- sized companies - mWIG40 increased by 18.2%. The WIG-20 index, made up of the largest companies, went up by 4.8% in 2016, while sWIG80, comprising 80 small-sized companies listed on the Main Market of the WSE, rose by 7.9%. Against this background WIG-Banki, which in 2016 increased by 2.9% year on year, did not perform equally well.
The closing price of mBank’s stocks on the last trading day in 2016 stood at PLN 335.25 and was by 6.8% higher than a year before. The company’s capitalisation increased by PLN 0.9 billion and at the end of 2016 stood at PLN 14.2 billion. Among the banks listed on the WSE only ING BŚK and BZ WBK performed better in 2016.
The decrease in mBank’s share price in January 2016 was driven by investors’ reactions to the presidential bill on the manners of restoring the equality of parties to certain loan agreements and borrowing agreements providing for conversion of the foreign currency housing loans at the fair FX rate and the return of spreads. The sharp growth in the Bank’s share price in August was a result of investors’ enthusiastic reaction following the presentation of a new presidential bill on the return of spreads on foreign currency housing loans on August 2, which does not provide for a forced conversion of the foreign currency loans into PLN. The correction and the sale-off of mBank’s shares on September 8-12 resulted from the fact that following the sharp share price growth the price-to-book ratio and the price / earnings ratio included an unjustifiable premium compared with the other banks from the WIG-Banks index.
Performance of mBank’s share compared with WIG-Banks and EURO STOXX Banks
Investor Relations at mBank
mBank pays close attention to ensuring effective communication with its investors and analysts. Investor relations are part of the responsibilities of the Investor Relations and Group Strategy Department which, through cooperation with the Management Board and a number of units across the Bank, ensures that stakeholders receive correct and complete information about mBank Group.
In 2016, investors and stock market analysts participated in four conferences on mBank performance, both in person and via the Internet. Each time such a conference is attended by around twenty representatives of brokerage houses and investors. All the meetings with the Management Board accompanying the announcement of quarterly financial figures were broadcast on the Internet in Polish and English and made available on the Bank’s website.
Relations with analysts, shareholders and potential investors are also strengthened through meetings at conferences held in Poland and abroad. In 2016, mBank participated in four conferences in Warsaw, three conferences held abroad and organised one-on-one meetings with representatives of the Management Board for institutional investors after publication of Q1 2016 results. Moreover, the Bank organised two roadshows in the United States, and four in Europe (including a roadshow in Estonia - for the first time). During the year, in addition to meetings at conferences and roadshows, the Bank held individual meetings of representatives of the Board and/or the Investor Relations team with investors and analysts.
Like every year, in 2016 two sessions were organised as part of regular meetings with the Bank’s rating agencies and a number of video conferences with the rating agencies were held.
Analysts and investors of mBank are kept informed about important events related to mBank Group via monthly newsletters and e-mails. The website of the Bank’s investor relations (https://www.mbank.pl/en/investor-relations/) was designed with Polish and English speaking investors and analysts in mind. It offers up-to-date and thematically grouped information on mBank Group’s financial results, shareholding structure, Annual General Meetings, ratings and performance of mBank shares on the WSE. It also includes current and periodic reports and details on consensus estimates for the Group. A dedicated interactive business intelligence application called mBank Analyzer offers a quick and easy insight into mBank Group’s financial results and business data. A dedicated section for new investors includes a factsheet and an introductory presentation on mBank Group’s operations, frequently asked questions as well as details of “Mobile bank” Strategy.