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In 2017, mBank Group reported the record-high total income. It amounted to PLN 4,454 million, up by 3.7% year on year. In turn, after excluding one-off event reported in 2016, that is the settlement of the Visa Europe takeover by Visa Inc., the increase would be 10.0%, mainly attributable to the improvement of net interest income and net fee and commission income.
Similarly to 2016, net interest income remained mBank Group’s largest income source in 2017 (70.4%). It reached PLN 3,135.7 million, representing an increase by 10.7% year on year. In turn, net fee and commission income went up by 9.5% and reached PLN 992.2 million.
| PLN M | 2016 | 2017 | Change in PLN M |
Change in % |
|---|---|---|---|---|
| Interest income | 3,872.9 | 4,052.1 | 179.2 | 4.6% |
| Interest expense | -1,040.0 | -916.4 | 123.6 | -11.9% |
| Net interest income | 2,832.8 | 3,135.7 | 302.8 | 10.7% |
| Fee and commission income | 1,550.8 | 1,659.7 | 108.8 | 7.0% |
| Fee and commission expense | -644.4 | -667.5 | -23.1 | 3.6% |
| Net fee and commission income | 906.4 | 992.2 | 85.7 | 9.5% |
| Dividend income | 3.3 | 3.4 | 0.1 | 3.0% |
| Net trading income | 244.6 | 294.1 | 49.4 | 20.2% |
| Gains less losses from investment securities, investments in subsidiaries and associates |
261.3 | -3.9 | -265.2 | -/+ |
| The share in the profits (losses) of joint ventures | -0.1 | 0.0 | 0.1 | – |
| Other operating income | 243.7 | 242.4 | -1.4 | -0.6% |
| Other operating expenses | -196.8 | -210.2 | -13.4 | 6.8% |
| Total income | 4,295.4 | 4,453.6 | 158.2 | 3.7% |
Interest income grew by 4.6% year on year to PLN 4,052.1 million. The growth resulted mainly from a growing volume of loans and a change in the structure of the loans portfolio – increasing share of high margin products, with a simultaneous decrease in the share of mortgage loans in foreign currencies characterised by lower margin.
Interest expenses decreased by 11.9% in 2017, which was related mainly to lower interest rate of deposits and a large inflow of funds to current accounts.
| PLN M | 2016 | 2017 | Change in PLN M |
Change in % |
|---|---|---|---|---|
| Loans and advances including the unwind of the impairment provision discount |
2,753.2 | 3,014.8 | 261.6 | 9.5% |
| Investment securities | 708.0 | 693.2 | -14.8 | -2.1% |
| Cash and short-term placements | 57.3 | 59.9 | 2.6 | 4.6% |
| Trading debt securities | 77.0 | 62.8 | -14.2 | -18.4% |
| Interest income on derivatives classified into banking book |
196.8 | 133.6 | -63.2 | -32.1% |
| Interest income on derivatives concluded under the fair value hedge |
59.9 | 66.8 | 6.9 | 11.5% |
| Interest income on derivatives concluded under the cash flow hedge |
15.9 | 15.8 | -0.1 | -0.6% |
| Other | 4.9 | 5.2 | 0.3 | 6.8% |
| Total interest income | 3,872.9 | 4,052.1 | 179.2 | 4.6% |
Commission income increased by 7.0% and amounted to PLN 1,659.7 million. Driven by a growing client base, commissions from bank accounts rose by 9.7%. The growth in transactional banking and a higher number of transactions translated into an increase in commissions from money transfers (+8.4%). 2017 also saw an increase in commissions due to guarantees granted and trade finance commissions (+21.4 %) and commissions on agency service regarding the sale of products of external financial entities (+18.4%).
| PLN M | 2016 | 2017 | Change in PLN M |
Change in % |
|---|---|---|---|---|
| Payment cards-related fees | 361.9 | 372.9 | 11.0 | 3.0% |
| Credit-related fees and commissions | 308.5 | 324.8 | 16.3 | 5.3% |
| Commissions for agency service regarding sale of insurance products of external financial entities |
166.8 | 187.4 | 20.6 | 12.4% |
| Fees from brokerage activity and debt securities issue |
142.0 | 135.5 | -6.6 | -4.6% |
| Commissions from bank accounts | 170.2 | 186.7 | 16.5 | 9.7% |
| Commissions from money transfers | 110.6 | 119.9 | 9.3 | 8.4% |
| Commissions due to guarantees granted and trade finance commissions |
58.8 | 71.4 | 12.6 | 21.4% |
| Commissions for agency service regarding sale of products of external financial entities |
115.4 | 136.6 | 21.2 | 18.4% |
| Commissions on trust and fiduciary activities | 25.0 | 26.3 | 1.3 | 5.3% |
| Fees from portfolio management services and other management-related fees |
13.5 | 14.8 | 1.3 | 9.3% |
| Fees from cash services | 51.1 | 53.3 | 2.2 | 4.3% |
| Other | 27.1 | 30.3 | 3.2 | 11.7% |
| Total fee and commission income | 1,550.8 | 1,659.7 | 108.8 | 7.0% |